According to the latest Consumer Indebtedness and Delinquency Survey (PEIC), conducted in March 2020, 66.2% of Brazilian households are in debt. This is the highest level reached since 2010, when the survey began.
What’s more, 15.5% of these households considered themselves heavily indebted and are in the category of payments more than 90 days overdue, which means more interest accruing and the final debt amount increasing.
Credit cards continue to be the main cause of delinquency (78% of those in debt), followed by installment plans in general and financing (for both automobiles and real estate).
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In a scenario like this, it seems impossible to pay off debts and clear your name, doesn’t it? That’s why, in this article, we’ll share some tips to help you negotiate simply and even digitally.
The importance of negotiating debts
Finding a good deal that fits your budget and financial situation to pay off an overdue debt is very important. Besides being able to sleep peacefully again, several other benefits arise when you put an end to the debt snowball.
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1- Put an end to interest
When you finally pay off a debt, you prevent the hole from getting even deeper. The older your debt, the more interest is being charged on it.
In the case of credit card debt, for example, we’re talking about a rate exceeding 300% per year.
2- Clear your name and increase your credit score
In practice, having a bad credit record tells the market that you are a poor payer.
As a result, your credibility will likely be reduced, and you’ll have a lower chance of accessing the various credit products offered out there:
- Loans
- A higher credit card limit
- Financing
- Overdraft protection
Your credit score (your rating) serves as a benchmark for financial institutions when deciding whether or not to grant credit to an applicant.
Negotiating overdue debts is one way to see your credit score grow, clear your name and, as a bonus, increase your chances of getting a higher credit card limit or financing, for example.
3- Organize your budget
Being free of debt gives you some breathing room to organize your budget and household bills. This makes it possible to consider different directions for your financial well-being going forward.
Some good ideas for when that moment arrives are:
– Create an emergency fund, which will help you avoid headaches caused by unforeseen events in the future;
– Start investing so your money can earn more;
– Take that course or professional qualification you’ve wanted for so long.
When we talk about negotiation, the scenario may sound familiar: you have barely woken up when the phone rings.
An agent reciting scripted lines demands payment for a debt you wish you had paid long ago. After a few negotiations, you accept an offer but end up unable to keep up with the installment.
To prevent this from happening again and finally free yourself from collection calls, solutions for 100% online negotiation already exist. They guarantee offers that truly fit your budget, among other advantages.
Take a look:
Why negotiate debts online?
- You don’t need to leave home or stand in line
You can do everything from your cellphone or computer screen: from proposals to customer service, everything is 100% digital.
- You simulate your installment amount
Some of these digital solutions allow you to simulate the ideal installment amount for your current situation and even make a counteroffer.
You can run as many simulations as you want, and you don’t pay anything for it.
- Your name is cleared quickly
Once the negotiation is completed, if there are no other debts linked to your CPF, your name will be clear again within 5 business days of the first payment.
- Due-date reminders
Digital platforms also give your memory a helping hand by sending reminders about the due dates of upcoming bills via email or SMS.
That makes it easier not to miss the agreement’s special terms.
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