Credit cards can be a great ally for those who want more convenience, ease of online shopping, travel or install large purchases, but pay attention because it’s so easy to lose control, especially making installment purchases, and getting a card debt. credit. Last year, 8 out of 10 Brazilians had credit card debt and this is increasingly common. Many people, even, are so worried that they are developing depression from debt . If you are part of this group, don’t worry! Everything has a way. The important thing is not to get discouraged, to look up and get organized to pay off the debt and end this problem.
In this post, we’ll answer a number of questions and give you some good tips for knowing how to negotiate credit card debt, how to control credit card usage, how to get a badly named credit card, and what to do to get credit card debt down. once for all!
Credit Card Debt Attachment Goods?
One of the most popular concerns of those with credit card debt is whether it is possible to lose assets. Yes, this may happen, but there are few cases and each situation may vary depending on the size of the debt, your monthly income and what assets you own.
If you or your family own only one property, it cannot be pledged
A property such as this is only pledged to the debts of the property itself, such as condominium, property tax, or installments of a financing where, in the contract, the property acts as collateral for its financing, this is called fiduciary clause.
Cars can only be foreclosed if you have more than one
Unless the financing of the same provides for clause of chattel mortgage, same as the case of the property we commented above.
Another common question is whether credit card debt can block the checking account. The answer is: it depends. Things you use for work, such as sites, buildings or small farms, or are the result of your work, such as your salary or money saved in savings, are not pleasurable. If the bank blocks your checking or savings account on your own, it is an abusive action. However, there are two types of account lockout that are allowed:
Judicial block : when during the debt lawsuit, the judge allows the debt payment block.
Preventative blocking : If the bank suspects the source of the money, it can block as a security measure and bring to justice.
Credit card debt lapses?
It is quite common to hear people commenting that after 5 years credit card debt lapses, but this is not true! What happens is that after this time, your name will no longer appear on Serasa’s list. So if you are going to borrow from another financial institution after that time, you can do it. But the card-issuing bank you used could still charge you the debt. Also, don’t forget that credit card debt can be charged judicially and give a big headache.
For those who have always wondered how to have a credit card with a dirty name, one option is to have a prepaid credit card, which is nothing more than an account where you put money through bank slip or transfer and use the balance that is there. in credit mode. This makes it easy to shop online, as some sites do not process payments with debit cards or slips.
What to do with credit card debt?
One thing you need to know is: Paying the minimum card bill amount is no use and only worsens your debt!
The first step in solving the problem is knowing exactly how much you owe in total, considering all interest and corrections.
After that, a good idea is to exchange this debt for a cheaper debt, such as a personal loan , and then contact the bank to negotiate your debt. Remember: Paying off credit cards has a discount on total debt, yes! Just negotiate properly.
How to end credit card debt?
As we said before, to pay off your card debt and get rid of this headache, you have to go through 3 steps:
1. Know how much you owe and how much you can pay
Here is the time to get it all down to paper: Start by asking the bank for the Total Effective Cost (CET) of your debt, which is the sum of the debt value to all interest, fees and taxes. Also, it is important that you know exactly how many months you owe and how much each invoice is worth.
So list all your monthly expenses and understand exactly what costs you can cut and how much you can pay monthly to pay off your card debt.
2. Negotiate the debt
When negotiating, the main tip is to do this in person. With eye to eye everything is easier. You can request the withdrawal of interest or fine or at least the reduction of interest rates.
Banks always make a profit by charging fees on debt, but there is no point in charging huge fees if debtors will not be able to pay. This is why institutions are usually willing to negotiate debt and this is the time when you can take advantage of a fair value that you can afford.
3. Apply for a personal loan
Because credit card interest rates are so high, the best option to pay off is to take out a low-rate personal loan with a good repayment term, so you pay off your debt and repay the loan in smooth monthly installments. A great option is a secured home loan , which is among the best-rate loans on the market.
To take out a secured home loan, you must have an endorsed residential or commercial property or mixed houses, land or non-endowed lots. Also, you need to make a simulation and evaluate your property. Then the application goes through a legal analysis and finally, with everything approved, it is time to sign the contract and go to the notary’s office! If all goes well , the money is with you in 10 days .
It sounds odd, but swapping one debt for another is a common practice, and especially in this case, it may be a good option! With the loan, you can find lower interest rates and get lighter installments. So you clear your name and commit only to an amount you can afford.
Don’t forget : If you decide to continue using your credit card, do so very carefully so that you don’t get into debt again.
The best thing at this time is to use the loan to repay the debt and also make a reserve fund and take advantage of this time to reorganize finances , cut costs, save to the maximum and avoid new debt.