Getting out of debt by taking personal loan
Get out of debt !!! Does it pay for debt relief? Dream of thousands of Brazilians at the moment, but, is it possible to reduce or be without debt taking a loan of money? This seems crazy even more is not it. Anyone can solve problems with debt simply by taking out a new loan even though it seems unlikely. You may have heard a famous popular saying, “Debt and interest grow without rain.” This saying makes perfect sense.
The truth is that some of the debts we get are fun, especially when we get them, but it’s not as fun as we have to pay them. Brazil is going through a delicate moment, but that is not why you must have heard of the famous debt trap, the one that when you see, it does not give more time to turn back.
I knew there were people who simply could not control their spending and made debts behind debt. The person spends more than he earns and still complains about the boss. Borrow money only to meet your consumption needs. Of course at a time or another the snowball will go over along with debt accumulated.
How can you reduce debt?
Staying without costly debts. No one can live just by disbursing interest compounded loans… No matter what type of loan, whether personal loan or payroll loan with secured or collateral. Many have already fallen into debt traps. You may have availed a car loan, a home loan or even a restrictive loan with high interest rates, credit card debt etc.
Whatever it is, you have only to reduce your debt. So what loans do you have to pay? Start with payroll, pawn of the Cash, guarantee of property or vehicle. Then it is only you should get rid of credit card debt and then your most expensive personal loans the fastest. Personal loan and credit card are unsecured financial transactions ie unsecured and unsecured debts, so you are charged such high interest rates.
To get an idea, a credit card charges interest of up to 360% at 493% a year at best. A personal loan comes to charge an interest of about 284% to 350% a year. Now you know why you should pay off your personal loans and reduce credit card debt first.
Should You Stop Paying Your Car Finance And Home Loan ? Definitely not. You should regularize payments that are late, including car loans and home loans to run out of debt. Simple. You should focus your efforts on repaying the loans that have greater interest and do not neglect other loans.
Did your salary increase?
Your boss or company has just granted an increase in your salary… What are you going to do with that extra money? Many adopt the ” earn more to spend more.” If this is your case, it’s best to ask for help or change it right away. You have future or defaulted debt, pay them off before you start thinking about what you can do with that money. You can anticipate installments of home loan and reduce pay time for example.
Apply for a personal loan
Basic account. A credit card charges interest of up to 18% to 25% per month. A personal loan charges interest of 9% to 14% per year. Would not it be wise to take an immediate personal loan and pay off your credit card bills? You could save a lot with the high interest rates.
Reflection : “Debt is like a chain tied to your foot, you can not go further if you do not get rid of it.”