Sometimes we get over and spend more than we have. Is it possible to get out of debt? There are alternatives.
Recently, I arrived at a friend’s office and, while I waited for her, I sat in the living room. It was almost six in the afternoon. Almost everyone had left and felt that silence typical of the end of the day. Except for the somewhat heated conversation of one of the executives. He talked with his partner. They discussed the best way to cancel debts.
Without thinking, I walked to his desk and handed him a note that said: I can help you. I am an expert in lowering accounts.
Pamela and Pedro had made several loans. Some with relatives, others with boxes. They had made important purchases with credit cards and were committed to their group of friends to pay monthly fees for an unforgettable trip. Finally, he was failing to meet his mortgage loan installments.
The alternatives to get out of debt
The first recommendation I made to Pamela was to review the monthly expenses. Many times, we don’t want to sacrifice our lifestyle. Lowering family expenses helps and a lot:
- Reduce the cell phone plan to a minimum (and take advantage of the Wi-Fi signal of the house and office);
- Change eating habits (another day you will eat salmon again);
- Consume less fun (nothing happens if you stay at home and watch Netflix series);
- Decrease beauty treatments and cravings (not for a lifetime!).
- Classify the monthly expenses: what you have to pay, what you can defer and what you can suspend.
Credit with mortgage guarantee
This line of credit can be very effective in these cases (and in many others). Banks lend money for free destination, that is, you can use it for whatever you want, and you offer real estate as collateral. This type of operation offers lower interest rates than a free investment credit or than credit cards.
It will be worth it if the amount of the debts is considerable, as you will have to incur legal mortgage expenses.
Free investment credit
A single credit can be less expensive than many small consumer credits or many small problems with family members, stores, suppliers and friends. Financial institutions can lend you a good amount of money for a period of up to five years. (Make this decision before being reported in a central risk, otherwise, no bank can lend you).
Proper handling of accounts and credit cards right now is vital. If you fall in high consumption for long terms, you will be growing the problem. The interests of cards, overdrafts and defaults are very expensive. It is better to avoid them. The strategy is simple: if you want to lower your accounts, lower interest. Point.
If you can, keep your credit card for a while. With the exception of this case. It requires discipline. Apply this formula:
Check the cut-off date of your card and take advantage of it. If, for example, the cut-off date is 15 and payments on 30, buy on the 16th. They will not be able to bill for the next account and you will have 45 days to pay. As the idea is to avoid more debts, it would be ideal if you could pay a fee (and not 12).
Increase your income
Sounds a bit cynical, but it’s true. That is precisely the strategy of companies when expenses increase: increase revenues. How? Sell something, take advantage of talent, work as a freelance or look for a new position.
I know many businesses that were born from financial problems. A friend, to reduce the stress caused by debts, cooked. Today it has a restaurant rated as one of the best in the city. Ana started making desserts and biscuits and offering them for What’s App. Marie makes jewelry at home and doesn’t want to go back to work anymore. Rodrigo found his vocation repairing old furniture. It’s great, right? Problems leave good opportunities.
The best advice is not to lose your temper. Grandparents say “money is achieved” to indicate that, in times of crisis, there are other things more important than money or things: family, health and friends.