နှစ်ယောက်တစ်ယောက်ဆွဲးတဲ့မေ
The first step to understanding how to get out of the red is to see how big that debt is. The first thing you need to do is review your expenses and look at what is overdue and which companies you will need to negotiate with.
Separate all accounts, from the smallest, which charge a low-interest rate for late payment, to the most expensive ones, such as overdraft and credit cards.
If necessary, contact the company to find out the updated amount you owe. Check how much of this amount corresponds to the fine and interest for the delay. Organize the following information in a table, application, or on paper:
- Company Name;
- What is the debt (overdraft, loan, financing, school fees, credit card, etc.);
- What is the initial amount you would pay;
- Put the value of the monthly installments;
- The updated amount you owe today knowing how much of it equals interest and late fees.
Not everyone is prepared to look at the total amount they have in debt. But without this step, there is no way out of the red. If you want to change this scenario and get out of this cycle once and for all, face this task head-on!
Now that you've listed all of your debts, it's time to look at where you need to start. Organize this list considering two factors as a priority:
- The most expensive accounts, which are those with much higher interest, which charge daily charges for late payments. Then classic examples of expensive debts are overdue credit card bills and overdrafts;
- Expenses for basic necessities, such as the property where you live. For example, if the rent on the apartment is overdue, the landlord can ask for the property back. Therefore, it is important that you organize yourself to keep your rent up to date.
These steps are fundamental to understanding how to organize your financial life and get out of the red, since, based on this assessment, you will have visibility of which debts increase quickly and which ones will bring other losses if nothing is done, such as being evicted, losing access to goods or services, etc.
Understanding your income is key to learning how to get out of the red. This is because, more important than the number of pending items, you need to know the monthly amount you will be able to pay per month.
Review how much you earn monthly and how much you spend. Later, we will explain how to do this in detail to maintain your financial organization.
Consider the costs you can lower or cut, and figure out how much you can actually pay off your debt each month. In general, ideally, this commitment to settle overdue bills should not exceed 30% of your income.
For example, a person earning R$3,000 should use up to R$900 to pay off debts. If it exceeds 30%, there is a risk of leaving other bills open or compromising basic needs, such as housing, food, water, and electricity.
There are two main options for you to pay off your debts:
I. Cash: You get a greater discount on the amount you should pay if you choose to pay cash. If you don't have money saved or an extra source of income to pay a lump sum at once, you can resort to some line of credit.
There are loan options at a lower cost, such as anticipating the birthday withdrawal from the Severance Indemnity Fund (FGTS).
This loan has a lower price than other modalities because there is already a payment guarantee.
In addition, it can be a good option how to get out of the red by paying lower interest rates than overdrafts or credit cards, for example.
II. In installments: This is the format in which you take on new installments, possibly with a discount, but which fit your budget.
So far, you've learned how to get out of the red and clear your name once you start paying the renegotiation. Now, you will see how to maintain a financial organization to avoid creating new debts and using your money in another way.
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Remember when we told you to write down how much you earn and how much you spend on average each month? Well, this task needs to be done regularly. After you create this table or use a finance control application, just update it every month.
Write down what your net gain is, that is, the amount that actually falls for you. Those who work with a formal contract have a salary on their pay stub, which is different from the net amount they receive in their account due to discounts. If you are self-employed, set a figure to be your salary.
As for expenses, evaluate your expenses for the last 12 months. Consider what is charged monthly, every six months, or once a year, such as IPTU. Separate expenses between fixed expenses, which always have the same value, and variables, which increase or decrease according to consumption, such as the electricity bill.
This classification will help you to monitor when an expense is much higher, due to above-average consumption.
Note which bills are a real waste. Do you know that streaming service you use a few times a month? What about the paid version of an app you've barely used?
As small as these costs are, they can make a difference. The focus is not on value per se, but on creating a habit of using your money for what it's really worth.
Take advantage of the energy you had to renegotiate debts and cancel services that will not be missed. If you don't want to give up, think about lowering the cost, such as downloading a cell phone plan or subscription TV.
Relying on these people to cut costs has a much greater impact in practice. Talk to them to share efforts and keep the same focus on paying off debts and getting out of the red.
Seeking extra sources to earn money is another way out that many people find when they need to figure out how to get out of the red.
You can start with your current job. See if you can raise the price you charge or try a promotion or job change. Selling items you don't use around the house is also an option.
You can still do activities that generate extra income on days and times after work. This is the reality of many app drivers, those who make food with delivery by delivery and those who sell items over the internet. Having a financial organization is the first step for those who want to learn how to get out of the red.
Get in the habit of saving every month if you don't want to resort to expensive debt or simply fall behind on bills. Start with 10% of your salary and increase that percentage until it becomes natural in your budget.
Saving a monthly amount should be a commitment, just like the other bills you pay. Use this amount to build your emergency reserve and plan future purchases, without having to get lost in bills.
