The expression “snowball” portrays the most perfect image of what happens when we leave our finances out of control. The lack of knowledge, associated with the urgent needs of day-to-day life can become a big problem for your pocket. Especially when we realize that we owe the bank!
Faced with this type of scenario, the watchword is action. It is not possible to leave the solution to the problem until tomorrow. Bank debts can add high interest. Are you in this situation? Learn how to get rid of them once and for all.
Pay when you can
No way! If you are in debt, it is best to arrange to pay as soon as possible. Otherwise, other problems may appear, such as entering the dreaded credit protection register, being unable to buy on credit, seeing your credit card limits being reduced and other things getting more difficult. Overdraft, financing or paycheck, if you are in need of one of these types of credit prepare to follow some tips that can help you get out of this
Request interest review
For all modalities, it is necessary to review the interest charged in the contract. It may be that the bank is charging abusive fees and even if it is not, it is good to make sure that it is possible to reduce it in some way. PROCON offers this assistance free of charge.
Negotiate the payment of debts
Below, we have prepared a practical, useful and very simple guide listing the main debts to the bank and how to pay or renegotiate them. Don’t forget, for all debts the main tip is: go to the bank and talk to your manager to try to renegotiate.
Print bank statements from the beginning of the process. It will be necessary to check how much interest you have already paid. After this step, see if it is possible to contract another type of loan, with lower interest rates and better conditions. This option allows you to have the value to quickly pay off a debt with very high interest rates, so it is a debt exchange that relieves your situation a little.
Widely used to buy a property, a car or other property of greater value, financing can give you a headache if you are hired in many installments and if you do not consider the percentage of family income to be committed to the purchase.
If there is an option for the early settlement you will benefit from a significant reduction in interest. If the installments are very high, the option is to renegotiate by extending the term of the debt. As the last suggestion, the debt can be migrated to another financial institution at lower interest rates.
In the case of paycheck-deductible loans, as the discount is made directly on payroll, the best way out is to go to the bank and deal openly with your manager about the situation. Say that it is difficult to afford the installments and that you urgently need a renegotiation or a contract readjustment. As your interest is to pay, you will surely come to a more viable agreement.
Attention to the contract
Finally, before signing any contract, be it a renegotiation or a new loan, carefully read all clauses. Avoid dealing over the phone or via online chat. In such cases, the person is more susceptible to acting on impulse and ends up deciding, often without thinking straight.
If at any time it is found that the bank acted in “bad faith” with the fees or the contract, you have the right to take legal action to resolve the matter. But this must be evaluated by an expert.
Whether the debt is paid or renegotiated, from now on you will need to reorganize all your finances. Make a note of all your expenses and plan to save some money. Thus, you will gradually conquer a peaceful financial life.