Most people have already had a financial squeeze and have had to delay an account at least once in their life. This type of unforeseen event is common but requires caution, as interest is present in almost every account we pay and it can cause the amounts to rise dramatically if the debt is not controlled, making it even more difficult. the reckoning.
If you are in this situation, the Pontifex family has listed some tips to follow to make a good debt negotiation and avoid paying very high-interest rates, saving you money. Check out!
Know your budget before making a debt negotiation
The first step to take before negotiating debt is to know how much you can spend per month with each area of your life, in order to project how much of your income you can devote to paying your debts. TRENDS. A good way to set these goals is to follow the 50-15-35 rule, ie 50% of income for essential expenses, 15% for financial priorities, and 35% for spending on your lifestyle.
Once you know what your monthly expenses are, it is time to map out your debts, ie to know to whom and how much you owe. With a list of all your creditors in hand, contact each one to find out the amounts to pay off your debt. Do this even if you do not intend to pay the whole amount at once. You will need this information when making an installment proposal later.
With the information in hand, you can now move on to negotiating debts indeed. Get in touch with lenders and start with those faster-growing debts (which can be both high value and higher interest. Make the accounts to see which one is generating value in higher interest at the end of the month).
Go to the negotiation prepared to make your proposal, taking into account the amount of the payment in sight plus lower interest rates than you are currently paying. If you do not know how to judge these values, the Cream Bank Citizens Calculator can help you.
If the lender does not want to accept your proposal for debt negotiation try to insist on it and show your calculations. Remember to keep in mind the amount you can afford and do not accept a business proposal that you will not be able to meet. As a rule, the older your debt, the more likely the lender will accept your terms. If this does not happen immediately, be patient, save your money and look for it again in the future to perhaps make a payment proposal in sight.
No more questions
When you finally get out of the red, focus on creating an emergency reserve in case any unforeseen events happen and money is missing, or you need to spend on something that was not in the plans. Thus, you will avoid having to go through this debt negotiation process again and will have a smoother financial life.
By following these tips you can settle your debts more smoothly and advantageously. Have you negotiated your debts ever? Worth it? Comment and share with us the results of this action!