How to get out of debt is one of the main concerns of over 60 million defaulting UK citizens. If this is also your case, we have prepared this complete article with tips on how to get out of debt quickly!
After all, collections come from all sides: from loans requested, monthly payment slips, financing made … The list is long and the work of knowing how to get out of the accounts is challenging, but possible.
So in this post you will discover how to get out of four common types of debt:
- how to get out of bank debts;
- how to get out of credit card debt;
- how to get out of debt with the Union;
- how to get out of debt and plan for the future.
Next, we will assess how to improve your financial situation and never end the month in red. Good reading!
How to get out of debt quickly?
Let's start with the most basic and generic way so that you understand the importance of financial organization to get rid of debts.
The first step in doing this is to equate your expenses with the income you accumulate monthly. Ideally, costs should never exceed your receipts.
For example: if your income is R $ 2 thousand, the financial goal must remain below that amount. Only in this way, you avoid financial debts and also manage to raise savings targets for save money.
Therefore, it is worth keeping an eye on your bank statement. Through it, you have a complete record of everything you do with your money saved in the checking or savings account.
If you already have accumulated debts, it is essential to have this control. In this way, it is easier to assess what can be contained in expenditures in order to have enough to settle financial issues.
Remember, even, start with the debts with the highest interest rates. This helps to reduce the final amount you owe without creating a snowball of accumulated interest.
Types of debts and how to get out of them
1. How to get out of bank debts?
Regardless of the reason that led you to accumulate debts with a financial institution, it is important to first talk to your manager.
Renegotiate the debt, try to get better terms and payment terms. This helps to give a necessary breath to end the pending.
Institutions are most interested in getting out of debt. Therefore, a good negotiation tends to be advantageous for everyone. You end up with the outstanding debt and the companies recover the credit granted to their customers.
2. How to get out of credit card debt?
In the case of a credit card, be very careful. Its use should already be very sparse – especially, if you don't have a financial plan or if you usually use it to split your purchases.
After all, your credit limit does not necessarily match your monthly income. If you extrapolate from using the card in one month, the bill for the next month will charge you every penny that has been spent.
Not to mention interest is very high for those who generate credit card defaults. So the situation demands the urgency to negotiate with the credit card operator.
Again, there is an interest in getting out of debt quickly. So, look for the best payment terms that adapt to your financial reality so that you can gradually learn how to get out of debt.
3. How to get out of debt with the Union?
Whoever owes it to the government (municipal, state or federal) has, therefore, an active debt with the Union. This can be, for example:
- debts with IPTU;
- debts with IPVA;
- defaults on traffic tickets;
- defaults with environmental fines.
Among other debts that are in debt with government agencies. As a consequence, the CPF or CNPJ of the indebted person is negative.
And that configures how dirty name in the square, which demands debt settlement to be able to enjoy the benefits of getting out of debt.
4. How to get out of debt and plan for the future?
Now that we have seen some of the most common situations of how to get out of debt through good negotiation with creditors, it is time to understand how you can educate yourself to ensure better results in the medium and long term.
Keep an eye on the following tips and try to follow them within your routine:
- analyze and make sure of the value of your debts;
- renegotiate debts;
- based on the updated values and terms, it is time to use the bank statement to identify a balance of your income and costs;
- set a monthly savings target;
- focus initially on higher debt and higher interest rates;
- once the debts have been settled, start to control spending;
- build a budget that considers preparing an emergency reserve and also an amount (however small) to save (hence even the importance of having new financial goals);
- write down all expenses and keep them under monitoring in your cost spreadsheet.
We have here on the blog, including, a very complete post with strategies for how to save money! Take the opportunity to check it out as soon as you finish this article!
Help on how to get out of debt with salary on demand
With what we saw throughout this post, it was possible to understand how getting out of debt is a possible alternative, but which demands financial planning and discipline.
Companies can play an essential role in this financial turnaround for their employees, adopting tools that bring more benefit to everyone on the team.
Get to know the tool HR Consultant UKy and learn how the system that implements the on-demand payment, that is, the employees of a company can anticipate part of their wages when they need it.
HR Consultant UKy can be one of the most valued benefits for those who work at your company. Talk to an expert and learn more!
HR Consultant UK can help if you have any questions about How to get out of debt: most common types and how to pay them off
. Our HR consultant in London can assist you if you live in London. Suppose you live further afield thats not an issue! Visit our HR Consultants Near Me page to find the best consultancy nearest to you.
See you next time!