The interest rate in Brazil, even with a record of falling in recent months, is one of the highest in the world. Experts believe that high interest rates, especially on the credit card rotary , is driven by the banking spread, which is the difference between the cost of money to the bank and how much it charges to the consumer. And with interest so high it is very important that you learn to negotiate your debts and so pay less interest.
In the midst of anxiety, those who are in debt and do not know the best way to negotiate debts, ends up opting for more difficult ways, such as staying defaulted or paying high interest rates .
The problem is that, realizing the need for urgent action, those in debt can accumulate new debt if they do not know how to carry out financial planning to negotiate debts and pay settlements on time.
Still, you can act fast and find good alternatives to negotiate pending issues, so that you pay less interest and get out of the personal financial crisis .
After all, with outstanding debts, your financial health and well-being only get worse, and you run the risk of not being able to recover damages.
Revolving credit: new rules increase the chances of default
Credit card leads the ranking of debts in Brazil. With the new rules for revolving credit, which came into effect on June 1, 2018, the minimum payment rate, which previously was 15% of the total invoice value for all consumers, may be chosen by the bank or issuer of the credit card, which may increase the indebtedness of Brazilians.
With interest that can reach up to 395% per year, in a period of 12 months, a debt in the amount of R $ 1,000.00 will cost almost R $ 4,000.00. To avoid paying interest on the rotary, there is only one way: to pay off the credit card debt .
Next, Good Credit gives you tips on how to negotiate your debts and pay lower interest rates.
How are your finances?
It seems silly, but many do not know where the salary goes and have the feeling that when the financial situation tightens, there is no money left to keep the accounts up to date.
It is also common to not know where the debts are, since facing the problem is not easy.
Before you seek to negotiate your debts, it is necessary that you make a financial diagnosis, a check-list from your pocket , to reduce the chances of having trouble paying what was negotiated.
Let’s go to a simple and practical exercise to organize finances once and for all. Answer the following questions:
- What is the value of my monthly fixed income? If you are a variable income, what is the minimum amount you have achieved in the last three months?
- How much do I spend on monthly, fixed, rent, and variable accounts (general accounts)?
- What are my small debts? For example: debts to store cards.
- When I’m away from home, how much do I usually spend on average?
- What is my biggest goal right now? Probably to negotiate and pay off debts, and that should be very clear!
After clarifying what are the main commitments with your valuable money, evaluate which are the expenses that can be reduced or even cut, so you have a less tight pocket when negotiating your debts.
It is important to be aware that when negotiating a debt, you make a commitment to pay your settlement on time.
By clarifying your current financial situation, you will identify which are the major issues that prevent you from managing debt and keeping up with personal finances .
Pay less interest: Learn how to negotiate your debts
Most of the time, companies offer two options for negotiating with the defaulting customer: payment of debt at sight with discounts or installment of debt with interest.
In the case of cash payment, the customer is usually able to pay the initial debt amount without interest or interest rates much lower than the current one.
That is why there is no doubt that the best option when negotiating a debt is the full payment of the outstanding debt.
To negotiate your debts and pay less interest, you can apply for a personal loan with lower interest rates and get good discounts on the discharge of your debt!
The personal loan is a smart choice not only for those who are looking for solutions to pay debts, but also to organize the financial life in a few days .
At Good Credit, you increase your chances of getting a cheaper loan because we consult the best loan options available to our partners .