Getting Out of the Red: Quick Guide for Debtors

Installment purchases, credit card expenses, unforeseen expenses that require urgent spending are just some of the procedures that can end up in debt. The fault is not just high prices and expensive interest rates. The lack of money and, especially, of the organization is what leaves many people in the red.

If you did not plan well and now you are full of debts that need to be paid, it is time to reverse the situation. Gather all the bills, prioritize the ones with the highest interest and the most important and cut spending to get the debt settled.

For those who are “in the grip”, it seems like a huge effort to get organized to keep that little money that never gets left at the end of the month. The key to settling debts and not being a debtor is to make planning that meets your needs, be patient and be disciplined with your own finances. For you to get organized and get rid of your debts efficiently, we have prepared a quick guide that will help you get out of the red quickly. Follow our steps and reduce your debts!

1) Organize all your expenses

1) Organize all your expenses

You are probably in doubt because you purchased something without sufficient funds to make the purchase in question. Keep an eye on your available balance and your expenses to find out how much you have and how much you can spend. This is the first step for those who want to save money, as well as avoiding new debts and enabling outstanding payments.

Use a spending spreadsheet or online tool such as Capital Lender. This allows you to be able to organize your monthly expenses into categories and define what can be adjusted more clearly. Initially, it is very common that you think you have no expenditures, but save will always be possible, believe me. For example, you can talk less on your cell phone, make more meals at home, or trade-in the brands you buy for cheaper ones. This way you will have more money at the end of the month, which will be used to settle your debt installments.

Also read: “Why Shouldn’t You Make an Excel Spreadsheet?”

2) Define how much you want to book for months

2) Define how much you want to book for months

With organized spending, it is easier to define how much of your money will be used to pay debts. To make more accurate planning of values, you can also stipulate how long you want to pay them off.

3) Look for ways to make more money

3) Look for ways to make more money

If you can, try to work overtime or even get some freelance work. Measures like this will make you more tired, but with more money in your account, think about it. It’s a squeeze now, for a huge benefit in the future.

Another way to increase your balance is by getting rid of things you no longer use. Clothing, electronics and whatever is in good condition can be sold. You can organize a bazaar or, which is easier, sell online. Search for websites that specialize in trading and selling used items, they have a lot of visibility these days.

4) No more loans

4) No more loans

It is very important to understand that to save considerable amounts, you have to work hard. Even if you have already paid the outstanding installment of the month, don’t go out and waste it. Set aside the credit card, the installments, always try to pay cash and spend only what is strictly necessary. At the moment, your goal is to reduce expenses.

5) Prioritize the payment of debts with higher interest and importance

5) Prioritize the payment of debts with higher interest and importance

Looking at your accounts, you prefer the ones that charge the highest interest (if you don’t know which ones, you need to find out!) And the ones that matter most: the pending issues. They involve services that you really need but will be cut off in case of non-payment.

6) Renegotiate your debts

6) Renegotiate your debts

You can raise money to pay a larger number of installments and ask for a discount on the interest rate or even offer a cash amount to settle the debt immediately.

If your borrower has very high-interest rates or installments that make the payment process difficult, talk to your manager and ask whether you can exchange it for a lower interest loan or renegotiate it. it to define installments that fit in your pocket.

7) Have discipline

7) Have discipline

To put our guide’s tips into practice and get rid of doubts, discipline is essential. Understand that the change in the financial routine is temporary. The upside is that you now know how to handle money and you won’t make the same mistakes. Getting out of the red requires a total commitment on your part, don’t be discouraged!

Capital Lender wants to be your main ally in this process, we want you to use and abuse our financial control system to reach your goal of getting out of the red once and for all!