Being in debt can become a real torture in a person’s life. With so many lines of credit available on the market, it is common to think of resorting to a loan to settle debts, but borrowing money from the bank is still a debt like any other, isn’t it?
In times of economic crisis, several financial institutions offer alternatives to settle open pending issues. Therefore, if you want to update your accounts, you can opt for debt financing, which is an advantageous type of credit, especially in terms of payment terms.
In this article, we will discuss whether it is worthwhile to apply for a loan to settle debts and some tips to recover your financial balance and operate in the blue. Continue reading and follow!
The importance of financial planning
Financial planning consists of making a projection of your income and expenses for a certain period. Therefore, financial education recommends that each individual know how much they can spend each month.
When a person is filled with debts and is unable to pay them, it is a sign that he did not do the financial planning properly. If you intend to take out a loan to pay off debts, it is good not to make the same mistake. First of all, analyze your debts, compare values and maturity dates and see the best way to pay them.
Consider, for example, that debt with higher or higher interest rates should be given priority. Also, remember that fines also contribute to making the debt heavier.
The possibility of negotiating to settle debts
Before applying for a loan to settle debts, a great strategy is to contact your creditors and try to negotiate them. Thus, it is possible to get attractive discounts and better installment options.
However, if you have money available, separate those that can be paid in cash and with a greater discount. Even if it means you have to tighten up financially and forgo some perks to get out of debt quickly.
If you feel ashamed of talking directly with your creditors, there are already good solutions for this, negotiation through the internet. Serasa, for example, already offers this option.
However, always present a counterproposal if you feel that, even after the agreement, things will get heavy for you. There is no point in accepting an offer that does not fit your monthly budget.
In addition, it is important to always be aware of the fees and charges included in the installment amount, since the collection of abusive interest is illegal. A financial advisor or lawyer can help in this case. Below are some tips on how to negotiate your debts simply and quickly.
Plan yourself financially
A large part of the population has become accustomed to spending the entire salary before it is even available in the account. If your goal is to pay off all your debts, the first step is certainly not to renegotiate without knowing how your current financial situation is.
Before looking for financial alternatives, it is essential to carry out a financial schedule, what your monthly income is, what fixed expenses you need to prioritize, for example. So, analyze your spending for the past three months to see how much you can commit to the installments.