Want to sink into debt ? In times of crisis it is clear that the number of indebted has a much higher growth trend than in times of prosperity and abundance. However, it is not only at such times that people become defaulters and incur unnecessary debts.
In Brazil the indebtedness of families is in the rise, and we will look at this problem in a different way to understand what the main causes are. The interesting thing is that in this universe of people, workers and citizens who make money in a wide variety of ways, many have their financial lives completely healthy.
So the question is, ” How are Brazilians sinking into debt and how do we prevent this from happening? “Below are some of these ways:
Misuse of credit card
This is probably the most common cause of consumers having credit if they sink into debt. Instead of using credit card as an alternative method of accessing and advancing money that you do not have right now, many simply use it to expand credit capacity, increase income, and make spending. In short, that means they are spending more than they can earn.
How to avoid this? Is easy! Just spend what you can afford safely. If you are using your credit card, make sure that every penny you spend already has to be paid or in your bank account.
Pending or late payments mean that there will be fees and penalties for delays, and may even lead to the cut of consumer services such as water, electricity, telephone, gas etc., and also have the debt sent to the protection agencies to credit such as SPC and Serasa. Over time, interest will accumulate and become a huge debt, and before you know it, you will have more debt than you can afford.
How to avoid this? It may sound stupid to say that, but make your payments on time! Schedule payments, this is one of the easiest ways to avoid forgetting, put alerts on your smartphone to remember what payments should be made so that you can relax, knowing that you will never make a late payment.
Not being prepared for the unexpected
If you lost your job, your car needed preventive maintenance or repairs because of an accident, any of these or other emergencies that demand immediate cash can leave your finances uncontrolled and you pirouetting.
How to avoid this? Save an emergency fund (reserve money). Save enough money for three to six months, this simple acts will save you from serious problems like being in the dark, without water or the most serious, be evicted from your property.
Living outside our means helps sink in debt
If you are spending more money than you can earn, it is clear that you are living beyond your means and income limits. Those who usually live on credit will certainly have many problems that will make life much more dangerous.
Paying off credit card bills on the rotary, making insufficient payments on the overdraft, consuming everything in front of you, is sure to make the bills pile up until you can not see the light at the end of the tunnel sink into debt.
How do we avoid this? Again, the answer is obvious. If you do not have money in your bank account or free future money for this, do not spend on credit! It is very easy to get into the habit of spending money from the bank or other financial institutions (borrowed money), but this can cause serious problems, make a budget that helps you in defining the limits that you can or can not spend.
Little self-discipline with use of money and credit
If your answer to boost credit score or have a good score is to have a growing debit balance on your credit card and then get another credit card to increase credit if you have no doubt that you will find at the end of that path a lot of anguish and suffering – you will be deeply in debt in no time.
The correct use of credit products requires self-control and financial discipline so that all is right and make the credit work in your favor and not against you.
How to avoid this? If your solution to a card on the verge of bursting the limit is to get another credit card, as said, the financial chasm is right next.
The ideal is not to follow the trend of consumerism, avoid this common collective thinking that causes and attracts debt. A brilliant financial future begins when you become proactive, and you can start your climb right now!
What are some other ways people get into debt? Let us know in the comments!