The term “snowball” portrays the most perfect image of what happens when we let our finances go uncontrolled. Lack of knowledge associated with the urgent needs of everyday life can become a major problem for your pocket. Especially when we realize that we owe the bank!
Faced with this type of scenario the word of order is action. You can not leave tomorrow to solve the problem. Bank debts can add up to high interest rates. Are you in this situation? Learn how to get rid of them once and for all.
Should I, do not deny, pay when I can?
No way! If you owe it, you’d better get organized to pay as soon as possible. Otherwise, other problems can appear to be entering into the dreaded credit protection registry, being unable to buy on time, seeing your limits on credit cards being reduced and other things getting more difficult. Special check, financing or payroll, if you are owed in one of these types of credit, get ready to follow some tips that can help you get out of this:
Request the interest review
For all modalities, it is necessary to review the interest charged on the contract. It may be that the bank is practicing abusive fees and even if it is not, make sure it is possible to reduce it in some way. PROCON offers this free assistance.
Negotiate the payment of debts
The following is a handy, useful and very simple guide that lists major debts to the bank and how to pay or renegotiate them. Do not forget, for all debts the main tip is: go to the bank and talk to your manager to try to renegotiate.
Print the bank statements from the beginning of the process. It will be necessary to check how much you have already paid interest. After this step, see if you can hire another type of loan, with lower interest rates and better terms. This option allows you to have the amount to quickly repay a debt with very high interest, so it is a debt swap that alleviates your situation a little.
Much used to buy a property, car or other asset of greater value, the financing can give headache if it is contracted in many installments and if it is not considered the percentage of the family income to be committed with the purchase.
If there is the option of early settlement you will be benefited by a significant reduction of interest. If the installments are very high, the option is to renegotiate by increasing the debt term. As a last suggestion, debt can be migrated to another financial institution at lower interest rates.
Or paycheck credit
In the case of payroll loans, the payroll deduction is made directly, the best way out is to go to the bank and deal openly with your manager about the situation. Explain that it is difficult to afford the installments and that you urgently need a renegotiation or a contract readjustment. As your interest is paying, you will surely come to a more viable agreement.
Finally, before signing any contract, be it renegotiation or a new loan, carefully read all the clauses. Avoid dealing by phone or via online chat. In these cases, the person is more likely to act on impulse and ends up deciding, often, without thinking straight.
If at any time, it is found that the bank acted in “bad faith” on the fees or the contract, you have the right to file a lawsuit to resolve the matter. But this should be evaluated by a specialist.
The situation has been resolved. Whether the debt is removed or renegotiated, from now on you will need to reorganize all your finances. Write down all your expenses and plan to save some money. Thus, you will gradually conquer a quiet financial life.