As if get out of debt while earning little

Debt isn't always a bad thing. Sometimes it has a positive side. It can help you achieve your goals or even buy things like a car or a house, even if you earn little. If everything goes as planned, great. However, problems can arise along the way, and it can often be difficult to keep up with your bills.

But rest assured, you're not alone. The Consumer Debt and Default Survey, conducted by the National Confederation of Commerce of Goods, Services, and Tourism, shows that nearly 781,000 Brazilians are in debt.

If you fit into this percentage and want to find out how to get rid of debt once and for all, this content is for you.

What to do when you are heavily in debt?

Over-indebtedness is when a person cannot afford to pay off their debts.

To break out of this cycle of bad debt, you need to take a deep breath, develop an action plan, and follow it to the letter.

To begin with, it's crucial to stay on top of your debt. Once you've done that, organize your finances and identify your debts so you can pay them off even if you earn little.

And finally, it's essential to keep your financial health up to date so you don't miss any payments and end up accumulating more debt with interest.

Did you see there's a light at the end of the tunnel? Now, let's understand how to get out of some specific types of debt.

What to do to get out of debt?

To get out of debt, you need to understand what debts you owe and their respective contracts. This way, you can more intelligently choose which ones to pay off first.

Now, check out how to quickly get out of certain types of debt.

Loan

Loan repayment delays typically arise because the debt is taken on in a moment of desperation, such as when you need to pay off another debt, invest in your business, or purchase an asset. However, it also happens without much planning on how you'll pay off the debt.

To get out of debt, you need to organize yourself to pay your installments on time or seek some type of negotiation so that the amount to be paid has a discount.

By credit card

A 2021 survey by Geniuzz shows that 35.51% of our users went into debt due to credit cards. The truth is, this type of credit is very easy to acquire, and many people consider it part of their income. Furthermore, credit card interest rates are over 90% per year, the second-highest rate on the market.

Therefore, it is no surprise that it is the number one cause of debt.

To get rid of this debt, you need to pay it off. But in any case, it's important to re-educate yourself on how to use your credit card.

From the special check

An overdraft is a pre-approved credit on your checking account that can become a major villain in your financial life. It's easy to use, but the interest is exorbitant and calculated daily, reaching 150% per year, the highest on the market.

But how do you get out of this debt? Cancel the overdraft and do everything you can to exchange the overdraft for a lower-interest credit, such as a loan, or negotiate the payment to pay it off as quickly as possible.

How to negotiate your debts with institutions

If you'd like a step-by-step guide to negotiating your debt, we've got a gift for you: a free digital book on how to negotiate your debt.

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