Being in debt is a situation that nobody wants. After all, the tranquility of knowing that your finances are up to date and that your income is just for you is one of the best feelings.
However, it is not always possible to avoid charges. And, in certain cases, there are so many that there is only one alternative left: renegotiation.
If you have this financial dilemma, get ready! We have separated everything you need to know about renegotiating debt. Look:
How to renegotiate debt?
The situation of those who resort to renegotiation is always very worrying. Generally, it has reached a point where it is no longer possible to maintain the plots and is in so much debt that everything has turned into a snowball.
Making a deal to pay off debt, at first, seems like a complicated idea, but for the consumer, it is a good strategy. According to the SPC, discounts for those who choose this route reach 22%. If the debtor pays in cash, it maybe 69%.
The 1st step
First of all, the consumer needs to know how much income he has and how big the debt is, that is, to calculate the amount with interest and fees that are part of the expense. Regarding interest, knowing their value separately helps when renegotiating.
With all the information in hand, it is time to go after the lender. If you do not know who is in charge at the institution, the debtor needs to speak to the call center.
Upon finding it, the consumer must explain his intention to resolve the issue and tell his current situation, that is, that he is having trouble paying them and wants to know what are the alternatives that exist for his case.
It is very important, to be honest about the amount you can make available to the installments and only accept a proposal that you can honor.
As banks usually give high values in the first claim, just dividing them into long-term installments, the consumer believes that he will pay less. Before giving the final word, it is interesting to analyze calmly if the proposal offered is really beneficial.
Next, we will explain about the rights you have when renegotiating your debt:
What are the rights of those who renegotiate debt?
In fact, there is no specific legislation for renegotiations. With this, some financial institutions end up adopting a more abusive attitude. Even so, the consumer does not need to accept the 1st proposal that is offered.
He has the right to go to court to redo the contract if he realizes that, during the payment, the charges are unfounded. Even banks cannot force you to accept certain criteria without taking into account your condition to pay the debt.
In addition, the renegotiation can be considered as a new debt and, thus, a new contract. Therefore, it is possible to reformulate what are the obligations and rights of both sides.
For this reason, it is important to record everything in the document and define the requirements well. This contract will be very useful in the event of irregularities and if it is necessary to take the case to justice.
We also recommend asking Good Finance for help in case of difficulties. The agency has a nucleus only for over-indebted people. However, it only works for those who fit the profile and are in default.
The others must afford, from their own pocket, a lawyer to mediate the renegotiation.
What not to do when renegotiating?
As successful as the renegotiation is, it is still possible for the consumer to take some wrong measures. In this topic, we have separated some errors that should be avoided at this point. Understand:
Do not re-budget
The budget analysis needs to be done before contacting the lender. Here is the moment when the consumer will know what his real financial condition is and when he will define what will be cut in order not to acquire new debts.
He must put his net income for the month on paper, subtracting taxes, benefits, and fixed and superfluous expenses. The final balance is the amount he will be able to pay monthly for the debt.
This diagnosis will be essential, even to dictate the circumstances for the renegotiation.