Anyone who has been through financial turmoil knows that there is nothing better than financial tranquility. The problem with being in debt is that this situation does not only bring problems to the pocket: it also affects health and relationships.Because of this, many people despair and take inconsequential actions (“overrun” the limit of several credit cards, enter the overdraft, among others), sometimes further aggravating the problem.
The purpose of this article is to present several alternatives for setting up a plan to negotiate your debts and actions that can be taken to speed up the debt repayment process.
What you should NOT do
Do not despair. For those who have gone into debt for being lay people and have not acted in bad faith, good news: justice is in your favor. You will know why more up front.
Do not invest It seems odd that I give you a hint, but anyone in debt can’t afford to invest. The explanation is simple: the interest rate you pay (on debt) is much higher than the interest rate you receive (on investments). To learn more, read the article “Pay off debt or invest? “.
Do not get into further debt. If you want to get rid of debt, getting new loans will not help, as it will only increase your problem. The important thing now is to negotiate existing debts.
So what to do?
Survey everything you owe, put it on a paper or spreadsheet, and prioritize debt repayments that have the highest interest rate. The explanation is that the interest rate determines the speed of debt growth. I’ve written several articles that show you how to get organized to pay off your debts, such as “Track Your Debts” and “Debt Settlement Strategy.”
After arranging and prioritizing the most expensive debts, it is time to move on to negotiation. Just as you are “crazy” to get rid of debt, your lender is also very interested in getting it. This way, trading is much easier. Your most expensive debts are likely to be credit card and overdraft. And if you are in a debt situation, justice can help in this negotiation.
What are the super indebted?
When I commented that justice was for those in great debt, I wanted to talk about the over- indebted.
Over-indebtedness, quite succinctly, are people who have gone into debt beyond their ability to repay.
There are some questions that can help identify over indebted people:
- Are my debts (monthly installments) more than 50% of what I earn?
- Do I need to work harder to pay off my debts at the end of the month?
- Does my salary end before the end of the month?
- Are my debts being causes of family quarrel?
- I can not pay on time bills for electricity, water, food, rent and / or condominium?
- Have I suffered from depression due to debt?
- Is my name registered in entries such as SPC, SERASA, CCF?
- Have I been late in paying my obligations?
- Have I borrowed money from a family member or friend to repay my obligations?
- Is my family unaware of my difficulties?
If you answered yes to most of these questions, you are likely to be in a debt situation.
Over-indebted Consumer Treatment Program
Several states already have over-indebted consumer support programs for broker negotiations with creditors. The first state was Rio Grande do Sul, followed by Sao Paulo, Paraná and Pernambuco.
Over-indebtedness is characterized by the global inability of the consumer (debtor, individual, layperson and bona fide) to repay all current and future consumer debts on their due dates, given their financial and economic inability to do so.
The Program does not include tax, maintenance or debts incurred as a result of professional activities, housing loans, losses and damages or for services rendered by a federal public company.
To learn more about each state’s initiatives, visit the following links:
- Rio Grande do Sul
- Sao Paulo
Even for those who do not reside in these states, the program, tips, and procedure for requesting a hearing conciliation is very worthwhile.
Until then, I only found the programs of these states. But that does not prevent initiatives in other states as well.
By the way, if anyone is aware of projects in other states, just leave the link and I will be happy to edit the text to include new links.