6 Steps for Debt Relief and Prosperity
Did you know that eight out of ten Brazilians owe their credit card, according to a survey released in March 2018 by the National Confederation of Trade in Goods, Services and Tourism (CNC)?
In the same month, the Credit Protection Service (SPC Brazil) reported that the number of people denied reached the mark of 60 billion in the country.
In difficult times for your pocket, do not be discouraged and check out six steps that Bom Pra Crédito prepared for you to take out your debts, get back to prosperity and not be part of that statistic, even with the crisis!
Step 1: Understand your relationship with money
What is your financial profile when it comes to spending money? Understanding your relationship with financial resources is one of the steps to having more money and prosperity.
If you are always in debt, it is because you still have difficulty facing reality.
Have you ever wondered if your lifestyle is the most appropriate for your pocket? Is Suffering to Save Money at the End of the Month Unhealthy for Your Financial Health and Well-Being ? These are some of the questions to understand your relationship with money.
Before taking the next steps to organize financial life , you should seek to be aware that you are in a financial crisis and also be willing to acknowledge the problems related to how you handle your money.
But it does not end there. It is no use merely recognizing that you are facing a financial crisis.
We must face all the obstacles that hamper its financial growth and make difficult the realization of dreams.
Step 2: Make a budget
Personal financial planning is key to overcoming the financial crisis, debt relief and prosperity.
Those who have no habit of controlling their spending are more likely to get into debt quickly. This is because without control of accounts, it becomes more difficult to understand whether consumer habits agree or not.
To keep your personal finances under control , write down your income (salary, extra income) and your expenses (fixed and variable expenses) on an uncomplicated expense sheet or in a notebook.
Personal budgeting helps to identify excessive spending as well as expenditure that seems to be underestimated but which, in the long run, accounts for a good part of your money.
These expenses are often part of the routine and therefore can go unnoticed, such as the morning coffee outside the house every day.
At least in a phase of financial crisis, try to reduce expenses to the maximum or even cut , such as service subscriptions (TV, internet, mobile phone plan, among others).
Step 3: Negotiate your debts
To get out of the crisis, once you recognize your spending habits and begin to control your spending, this step is considered one of the most important. It’s time to negotiate your debts!
If you are thinking of giving up paying one or more debts because you believe you do not have enough money to negotiate debts and settle outstanding debts , know that, yes, you can get out of debt with little money .
Remember: Paying debts is investing in you, a smart choice for anyone looking for prosperity.
Evaluate how much can be directed per month for negotiation payment. When negotiating with the lender, consider the payment deadlines available because you will need to organize yourself very well for some time.
One option is to apply for a personal loan to pay off debts at one go. Besides the possibility of getting good cash discounts, it is an alternative for those who are looking to organize the finances with practicality, since you will need to pay only the loan taken.
Step 4: Escape impulse purchases
Your consumption habits need to change, so you get back to prosperity. Control impulse purchases to avoid getting new debt.
To make it easier, create daily and monthly spending goals. Before you spend spending the available balance on the bank account – it’s not worth considering the overdraft limit – frequently ask yourself if the product or service you are thinking about consuming is even necessary. And even if you decide to consume, look for alternatives that make it cheaper.
Most of the time, impulse buying happens by momentary desire, by emotion, and is made without reason interfering.
Worst of all is that later regret can cause even more emotional imbalance and spending can get out of control quickly.
If you are experiencing an overzealous situation to overcome problems and feel better, it is recommended that you seek help from a specialist as soon as possible in order to avoid further financial frustration.
Step 5: Start creating a reserve for emergencies
Have you ever thought that if you had money saved you might not be facing a financial crisis ?
Before even thinking about investments to achieve your dreams, create an emergency reserve so you do not run the risk of getting into debt in the future.
The financial reserve is a way for you to have more peace of mind when you need more money.
Beware of this situation: avoid high interest overdraft and credit card , which lead the ranking of the highest interest in the market.
The ideal is that your total financial reserve is 6x the value of your income. Suppose your income is $ 3,000 per month. In this case, the amount required is $ 18,000.00 for you to have more peace of mind in situations such as loss of employment or unforeseen health expenses.
To make it easier to achieve a financial reserve goal, you can start with a low amount and increase over time.
But remember that if you need money, you would prefer a personal loan to other loans.
Step 6: Plan the steps to achieve your goals and have prosperity
What have you done to turn your dreams into reality ? The financial planning is essential for the achievement of goals.
If you have not stopped to think about your financial goals and what you need to do to reach them, start now.