We always say that the best alternative to pay off a debt is to reorganize expenses, strictly follow good planning and exchange it for a credit with lower interest rates. But we cannot generalize. When the monthly pending is already greater than the amount that goes into the pocket, this solution is not the most effective. In these cases, the customer is over-indebted and needs more help to get out of this! But before looking for that little hand, it is necessary to identify if this is the situation . There is over-indebtedness when your monthly income is totally compromised by basic needs and there is no slack in the budget to pay at least part of the debt. Thus, it multiplies with interest and paying it off seems something more and more distant. If that’s your case, don’t despair! Many times, we let the financial situation rule our emotional, but this is not usually very positive when we need determination to regain control of the money. Know that even a super debt has a solution and we will give you all the steps to reach it!
Understand the true size of debt
Accounting for how much you owe is one of the fundamental first steps. Consider all interest, penalties and fees that have been levied on the amount since it is pending. If you have more than one debt, do it with all of them and also know what the total amount is.
Analyze your finances calmly and in detail
Before making any decisions, you must know exactly where your money is going. See what percentage you spend on bills for the home, market, transportation, health and all other categories present in your day to day. Doing this makes it easier to determine which habits can be changed.
Analyzing your spending, you realized that almost all income is committed to basic spending. But even then, it may be possible to save money. A good tip is to go to the market with cash and not take a card. That way, you commit to buying everything you need with just that amount. How about also trying new and cheaper brands? You keep your lifestyle, but spend a little less – and every penny makes a difference!
Sell some goods
Even if it is a little sad, it is worth considering selling some goods when we are in need of a little money. If you have a lot of clothes hanging in the closet, you can sell the pieces at thrift stores. Selling the car and appliances is also a good thing, as they usually have a higher value.
Negotiate with the lender
Now that you know how much you owe, changed some consumption habits and did what you could to improve finances, it’s time to try to negotiate with the creditor. Ask for a discount and propose a deal that fits in your pocket. A good alternative is to use a portion of the money you received from the sale of the goods to offer an entry in exchange for more advantageous terms in trading. But be careful not to accept a portion that you will not be able to pay!
Look for public agencies that offer support to the over-indebted
If the creditor does not offer an agreement that is good for your situation, do not feel obliged to accept it! Some public agencies exist precisely to provide help in these situations. The Public Defender’s Office is one of them. It aims to defend the rights of people who are unable to pay expenses and a private lawyer when opening a reconciliation process with the creditor company. In some states, the debtor can also rely on the Lite Lenders Support Program for the Super-Indebted (PAS). He conducts a series of interviews with the consumer to understand the size of the debt and his day-to-day habits, offers lectures with financial guidance and also mediates with the creditor through a conciliation hearing. If you are over-indebted, the most important thing is to focus your attention and new habits to get out of this situation. Postponing this, in addition to keeping your name dirty for longer, will make the necessary changes ever greater. Be sure to follow these tips to regain control of your financial life.