A Personal Payday survey shows that more than a third (36%) of people paid interest for using the Special Check in September. Special Check is one of the lending modalities with more expensive interest rates of the Brazilian market. While payroll loans accounted for 27.8% per annum (pa), according to data from the Central Bank in August, Special Check rates reached 253.2% per annum. If you are one of those people who are committed, see the tips we have selected to help you get out of this situation:
Step by step to rebalance finances
Organize your expenses and revenues
The most important measure for people who are indebted is the organization. It is necessary to have a broad view of the problem. List all the debts in detail, including the amount of the debt, how long the account has been delayed, the interest rate, among other details.
Also list all sources of income and evaluate if there are assets that can be raised to raise more funds. The help from family members is welcome because they may charge you lower interest than the ones you are paying. Next, put all your monthly expenses in the worksheet. There are applications that already do this automatically, such as Personal Payday.
Define how much you can book per month
With the expenses organized, it is easier to define how much of your money will be used to pay the debts. For a more accurate planning of values, you can also estimate how long you want to take them off.
Renegotiate your debts
You can raise money to pay a larger number of installments and ask for a discount on the interest rate or even offer a cash value to settle the debt right away. If the debt you incur has very high interest rates or installments that make it difficult to process the payment process, talk to your manager and ask about the possibility of exchanging it for a loan with lower interest rates or renegotiating it to define installments that fit in your pocket
Do not make loans
It is very important to understand that to save considerable sums, you have to strive. Even if you have already paid the outstanding portion of the month, do not quit wasting around. Set aside your credit card, installments, always pay cash and spend only what is strictly necessary. At present, your goal is to reduce expenses.
Cut spending and set aside money for debt repayment
In order to be able to pay off the debts it is crucial to set aside a certain amount per month. An alternative is to increase the source of income by doing extra work, for example. In parallel, it is necessary to practice self-control and cut superfluous expenses. If you are very indebted, try to adjust your standard of living to get out of the network. Prioritize essential spending, do not buy on impulse, research prices, take advantage of grocery deals, quit without a credit card, and get away from the temptation of overdraft.
Pay the most expensive debts first
If you have different debts, give preference to those that charge the highest interest (if you do not know what they are, you need to find out!) And the most important ones: be cut in case of non-payment.
To put our guide’s tips into practice and get rid of debts, having discipline is essential. Understand that the change in financial routine is temporary. The upside is that you now know how to handle money and will not make the same mistakes. Getting out of the network requires total commitment on your part, do not be discouraged!