Year after year, the promise is always the same: “this time, I'm out of the red”. However, as time goes by, this is left behind and the debt remains there, intact. Well, how about doing it differently from now on, huh? With our text, you will get to know the 07 tips for paying off debts in 2021. Then, my dear, getting out of financial difficulty or not will depend exclusively on you, since the path of stones has already been given to you!

Before we start giving the 07 tips to pay off debts in 2021, let's remember why you should pay them off. After all, it's much more comfortable to leave the situation the way it is than to move to resolve them. But know: the consequence comes!

The first reason you should pay off your debt is that when you need third-party money the most, it won't be right for you. After all, which company will want to lend money to those who do not comply with their pendencies? Well, nobody! And if someone grants you the credit, you can be sure that the interest charged will be exorbitant. This is because, to cover your risk of default, the return to the creditor must be high.

So, think about that moment when you want to buy a car or even a property, but you lack money. With outstanding debts, you will not be able to get a loan to cover what is missing. The consequence is a frustrated dream, since the purchase will not take place.

Another good reason to pay off your debts is about what you will leave for your next generations. Imagine the following scenario: you die, but leave a huge debt for your family members to pay. They are definitely not responsible for your financial carelessness. So, resolve your situation as soon as possible before it's too late.

We could talk about several other reasons to pay off your financial debts, but the text is not about that. The two main reasons were given and now we can teach you the 07 tips to pay off debts in 2021. May your year be different from now on!

The first of our tips for paying off debt in 2021 is to understand why you are in this difficult financial situation. After all, there's no point in making calculations, plans, reading reports and books without a change in the way you look at your relationship with money. That's because, if you settle your financial debts today, the probability of contracting new ones is enormous if you don't understand the root of the problem.

It will not be very efficient, therefore, to cut all expenses and live on the slack if there is no reflection on how you spend your money today. In this way, it is worth asking yourself if you are not spending more than you should to compensate for frustration or to show status that you do not have due to the pressures of society. You can be sure that by directly attacking the cause of the problem, this will be much more effective than attacking the consequence, that is, that compensatory expense.

Do you understand why you are in debt? Then start to work them out, analyzing the characteristic of this pendency: if it is open or overdue. The first refers to financing a car or property, for example, or paying in installments for a purchase, which must be paid off by the due date. This type of debt is a reality for the majority of the population and is not as problematic as those who are in arrears.

The biggest problem is with regard to the last type of pendency: those that are overdue. In this case, these are those debts that you failed to pay, resulting in interest and delays for your delay. The consequence of this you already know: a huge snowball. Do not hesitate to prioritize them when paying off your debts.

Knowing what your debts are and which ones you will prioritize when paying them off, it is important to get in touch with each company that owes you to understand the scenario of your pendency. Thus, you can analyze the total amount of the debt(s) and which ones have the best conditions for renegotiation or for cash payment.

With the 3 tips for paying off debts in 2021 given above, you already have the following situation: you understand the root of the problem, raise which debts you have and understand the scenario of each one of them. It's time to put them in your monthly budget!

With this new sum, it is important to analyze whether you will be able to cover all expenses with the expected inflows. If this is not possible, there are only two alternatives for you: reviewing expenses, cutting all costs, or having another source of income. At that time, it is time to sacrifice a little in order to make this temporary amount viable until the debt is paid off.

Another of our tips for paying off debt in 2021 is to create goals to pay them off. With that in mind, you can separate your debts by priority and create strategies. For example, start by paying off the ones with the highest interest rates and take it one step at a time. Be careful not to rush and focus all at once! It takes caution and wisdom when resolving your financial life.

In this case, we are not talking about new sources of income, but about the possibility of getting loans with lower interest rates in relation to your debts. To illustrate what we mean, a practical case is trying to renegotiate your credit card debt, which has abusive interest rates, and pay it by contracting a payroll loan, whose rates can be found for up to 2% per month. That is, you pay less to your creditor, leaving more money to pay off your debts.

Finally, the last of our tips for paying off debt in 2021 is to commit to the purpose of paying them off. Whenever your financial choices are involved, think about them and your goal of becoming a year free of financial backlog. You can be sure that it is difficult to make these decisions, always opting to cut costs and expenses, but only a true commitment to your purpose can make it a little easier and more peaceful.

Did you manage to finish the year 2021 without any overdue debt? What great news for you! However, be careful not to make the same mistakes. To begin with, keep an emergency reserve, the amount of which must cover at least 6 months of your work. With it, any financial unforeseen that arises will not make you contract new pendencies. You will have much more security that way. Do different and have your financial life much healthier from now on!