Few situations are as unpleasant as being in debt. And due to the economic context, this is a common situation for many Brazilians. As early as 2019, 60.1% of the population had at least one debt and 22.9% were in default, according to CNC (National Confederation of Trade in Goods, Services and Tourism) data.

To circumvent this problem and avoid the unpleasant consequences of default, such as the inclusion of the name in credit protection services, it is common for people to try to renegotiate debt. If you want tips that can help in this situation, here are some steps to make the process less complicated.

List all your debts

List all your debts

The first thing to do to renegotiate your debts is to know the real extent of the problem. To do this, list all of your debts, including consumer bill of exchange (water, electricity, and telephone, for example), credit card bills, and negative checking account limits.

In parallel with this list, write down your recurring monthly expenses and your monthly income. If possible, look for expenses that can be eliminated or reduced. As we will show below, this margin will be essential when dealing effectively with lenders.

Prioritize the most expensive debts

debt loan

When we mention the most expensive debts, we are not necessarily referring to those of higher values, but to those with higher interest rates. A classic example is open accounts involving revolving and overdraft credit cards, whose rates easily exceed 300% per year. With this number, it is easy for debt to get out of control and become priceless. Therefore, they must be guaranteed.

Swap more expensive debts for cheaper ones

debts loan

The process of identifying the most expensive debts also allows you to plan debt swaps. At first, this does not make much sense, but it can greatly help save money by charging interest.

For this, you need to look for a line of credit that offers lower interest rates than those paid on the original debt. After hiring, just pay off with the loan money and take responsibility for repayment of the installments.

Be prepared to renegotiate debts

renegotiate debts

If changing debt is not the best option for your pocket, there is still the possibility of renegotiating with creditors. In most cases, they are willing to talk, including offering discounts, to get at least some of their money back.

First, look for the service channels provided by the company for this alternative. During the negotiation, be honest about your ability to pay and try to bargain discounts. And most importantly, don’t break the deal after you’ve made it.

Consider a consortium as an option to pay off debt

Known as a great way to acquire assets, consortia should also be on the list of those who want to pay off their debts. In addition to helping with budgeting, the letter of credit obtained after contemplation can be used to settle debts under some conditions.

This is the case, for example, with those who have a property or car financing whose benefits are weighing in their pockets. For this, besides having already been contemplated, it is necessary to respect the category of the consortium and to follow the other rules imposed by both the administrator and the bank that granted the financing.

Debt renegotiation is a painstaking process that involves careful planning. It is also important not only to get rid of current debts, but to get organized to maintain financial health. This requires rethinking your relationship with money as a whole so that it is more relaxed.