The economy is in crisis and everyone knows that it is getting harder and harder to pay the bills. At times like these, care must be taken that financial backlog does not turn into a snowball. Many people are willing to make an effort to keep up with appointments and want to find out how to get rid of their debts quickly. If this is your case, check out the tips we have prepared in this article.
Write down all your expenses and income
Do you know that feeling that money has “evaporated” from your account and you didn’t even see where it went? The best way to end it is to put all values at the tip of the pencil. Whether it’s getting around debts or making more money, you need to keep track of your daily expenses, knowing exactly where and how all values come from.
Create a save goal
Once you know all about your own money, it’s time to set up the monthly budget and set a goal to save. If you cannot start with a higher value, such as 30%, try to save at least 10% or 5%. This money will be used to pay debts and, in the medium term, to establish a healthy financial life.
Acquiring the money-saving habit is one of the most important points for balancing finances. Simple attitudes such as having a piggy bank for storing coins help you to develop your saving routine.
Start paying off higher interest debts
Collect all your doubts and analyze each one. Set aside the ones with the highest interest rates and plan to pay them off today. Unfortunately, Brazilians suffer from high interest rates and delaying the payment of high interest debts only worsens the situation.
Renegotiate other debts
After settling the high interest debts, try to negotiate the other issues. Talk directly to the people and companies you owe and tell the truth. Show that you are willing to pay. If it is possible, try to pay off the first installment as soon as possible so as not to get the interest.
Forget Credit Card
Instead of buying on the card, make your day to day purchases (food, transportation, bills) in the cash. In addition to avoiding borrowing for the next month, this practice has other benefits. It may seem strange to anyone who is used to technology, but having the money in your hands helps you control every penny that comes out of your pocket.
Use financial apps
Today, there are already technological facilities that help us control our finances. Mobile financial applications, such as Capital Lender, are a great example. In addition to being free, it automatically tracks spending by categories.
It works like this:
1. You enter the internet banking data;
2. The Capital Lender app keeps track of all movements made to your checking account and credit card;
3. The tool automatically separates expenses by categories;
4. Result: It is easier to know where you can cut spending and identify potential savings.
Did you like today’s tips? If you were wondering how to get rid of debt quickly, you could tell that the task requires some sacrifice. However, with a little organization you can breathe more easily. Remember to keep your actions long term to avoid getting into debt again!