Do you know those debts piling up that you don’t know how to start eliminating? Yeah, apart they looked small, but together they start to scare and sometimes even lead to the negation of the name in the credit protection agencies, or at least the hell of a headache.
But since life can’t stop and we know the important thing is to go after it to solve, we will help you with tips on how to renegotiate these financial backlogs.
What debts should I negotiate first?
On average, an indebted consumer has 4 overdue accounts. If this is your case, the first step is to find out which accounts you need to prioritize for payment. And here comes the most important tip: pay off the most expensive debts first.
The most expensive debts are those with the highest interest rates. These are usually credit card or overdraft debts. In such cases, if you cannot repay the full amount, you can exchange the debt for a personal loan, for example, which has much lower rates, or for a loan that uses collateral in the case of debt. higher values.
To decide if this is the best alternative for you, evaluate the Total Effective Cost of the current debt and loan you get online or even at your bank. Compare the two and compare the number of installments and evaluate your current ability to repay that loan.
See Credit Protection Service for all outstanding debts
If you have defaulted to the point where you get a bad name or have questions about the condition of your social security number, you can consult the social security status on the Credit Protection Services websites.
It is important to always follow the CPF situation, because when you get the name negated in the credit bureaus, you have fewer offers of credit in the market.
If you find that your name is negated in these credit bureaus, contact the companies you owe it directly so that you can negotiate your debts. Lenders will always find it positive when a debtor takes the initiative to negotiate debt. This means that it has an interest in paying. During the negotiation, the most important thing is that the value of the parcel fits in your pocket. Thus, you need to start the conversation by showing your ability to pay, and each installment must not exceed your budget so that you do not default again.
Use extra money to pay off debts
If you have an expensive debt and have the opportunity to repay it using your own resources, do so as soon as possible. The thirteenth salary, income tax refund, and other extra income you have throughout the year can be of great value to you in paying off these debts and spending a lot less on it.
If you do not have an extra income that can help you with this, then it is time to look for the cheapest lines of credit, such as personal loans, secured loans and payroll loans.