According to the data of the Bank of Portugal, the debt of the Portuguese families, in June of this year, corresponded to a total of 157.6 billion euros. The large portion of this amount (71%) refers to charges related to mortgage loans. And while household debt volumes are falling, the truth is that it is not always easy to keep accounts in order and comply with debt repayment plans on a day-to-day basis. Learn about some strategies you can implement, not only to avoid falling into over-indebtedness, but also to get rid of debt as quickly as possible. See http://www.sonotheque.net/how-to-choose-the-best-payday-loan-consolidation/ for an example
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1. Prioritize payments of debts
For those who find themselves in the grip of many debts to pay and little money to meet all the commitments it is imperative that you know how to prioritize the payments. That is: Ideally, you should be able to pay all debts, but if not possible, which ones should you pay first? The answer is not linear and depends on case by case. However, there are debts (such as home loans, electricity, water and gas bills, or taxes) that should always be paid as a matter of priority, or the consumers risk losing their home or becoming insolvent . After these priority debts, the remaining debts arise: such as consumer credit, credit cards, or the money your family and friends have lent you. And in this field, the rules dictate that you should start by paying those that have a higher interest rate. By paying off these debts first, you will end up paying less interest, thus relieving your budget.
2. Compare your payment plan to a diet plan
When you commit excesses it is normal to follow a period of some frugality. The same must happen with your debts. If you have difficulty paying what you owe, cut back on some expenses. Build a monthly budget with your fixed expenses, where you should include the expenses with the debts and try to follow it to the letter. Take advantage to save some money to later amortize the interest of some monthly installment.
3. Do not miss payments
Failure to fail payments of your claims is a good principle in order to be able to negotiate your debts. If you have never failed to pay, you can try to start by proposing to negotiate the terms of your credit. Expose your situation and try to negotiate contractual terms such as extending the loan term, or even the interest rate. It is also important that the payment plan is compatible with your monthly payment. Remember that all types of credit can be renegotiated, from housing credit to car loans to personal credit.
4. Ask help to pay your debts
Credit and association management companies are increasingly providing services to over-indebted consumers in order to be able to obtain a payment plan for their charges that is feasible in the light of their financial situation. This is the case, for example, of the Deco over-indebtedness support office and the SOS Families in Indebtedness. Important advice: some entities (such as Deco) provide this service for free. But most charge a certain amount by the mediation of these processes. For this reason, be aware of the costs charged for providing this type of services.