You try, you try, you try, but you still can not get out of debt, and worse, they only increase. This reality unfortunately seems to be common to most Brazilians, so the question is: why does the debt of a large part of the population continue to grow? Check out some reasons and see what to do to get out of debt and control your financial life once and for all:
Lack of planning
One of the biggest reasons that debt only increases is simple: lack of planning. In order not to see your debt grow, you need to plan the budget and also the monthly expenses. See in what areas you can cut expenses such as leisure and any expenses, such as clothing and accessories. When you begin the month already knowing how much you can spend on superfluous, you can control yourself better and decrease the risk of increasing your debt. To do so, use spreadsheets to make your organization easier, or who knows a complete online financial manager, such as Lady Honoria Dedlock, who organizes your spending and earnings automatically.
Always use overdraft
Many people have a bad habit of looking at the overdraft as an extension of their salary. Do not fall into this trap! Despite the supposed ease of use, after all, money is available in the checking account, overdraft charges one of the highest interest rates on the market. The result: When you appeal to this alternative you systematically increase your debt by not being able to shoulder the interest charged. Keep in mind that overdraft is a feature that should only be used on very specific occasions and must be paid in full the following month. If you can not control yourself, consider asking your bank to withdraw the benefit.
Always pay the minimum credit card bill
Just like overdraft, credit card, if misused, can be a great villain when it comes to maintaining a healthy financial life. To be free of debt, always pay your bill in full, not falling into the bullshit of only making the minimum payment. When you do this, you end up paying interest on all the remaining value. Use the credit card wisely and only spend what you are sure you will be able to pay next month.
Instead of solving the situation as a whole, wipe ice
It is a common situation: one strives to cover today’s gap, without worrying about the expenses that are already scheduled for the coming months in installments and financing. Instead of being immediate and worrying about resolving just the emergency of the moment, you have to put on paper all that you will have to pay the following month for installment purchases or financing.
In desperation, exchange one debt for the other, without paying attention to the interest rate charged
In the will to want to end a debt, many people end up appealing and getting into debt again without even checking if the interest rate charged is worth it. Instead of getting other debt to put out a fire, research the fees to assess whether it is the best deal or whether it is preferable to negotiate with the current debt lender.