Seeing tips to get out of the red is what many Brazilians need. The country reached a record of more than 60 million defaulters in 2019 and is facing an intensified crisis with the Covid-19 virus pandemic.

Having problems closing accounts at the end of the month is a challenge of 55.6% for Brazilian families according to the National Confederation of Trade in Goods, Services and Tourism (CNC). Resorting to the minimum payment of the invoice and gradually seeing your debt becoming a snowball because of very high interest rates seems to be a dead end.

But nothing is lost! Small attitudes, such as financial education, are extremely important for Brazilian families. But, unfortunately, they are not encouraged. That kind of responsibility with your money can then save you from going into the red or get you out of it.

Thinking about it, today we want to show you that it is possible to get out of the red even earning little. Everything must start with the practice of financial planning, but you must be willing to organize yourself and prioritize debt discharge. Then see the tips to get out of the red once and for all. Keep with us!

Being in the red is a complicated and desperate situation. But, the first step to be taken is to see what made you arrive in this situation. And then, think about what you can do to under no circumstances repeat the same mistakes. Remember, if you and your family don't change your behavior, the situation will only get worse.

If there are tips to get out of the red spending little, it is therefore the question that remains. After all, how is it possible not to get bogged down in debt in a country where interest rates are the highest in the world?

Come on then, first you need organization and discipline. Install your debt with creditors, but only if you feel confident that you will be able to pay.

Keep in mind, then, that there is no magic formula. You will need to cut expenses and hold back the desire to take on new debts while you are trying to pay off the ones you already have. Here are the 8 tips to get out of the red that we have separated to help you on this journey!

As you may already know, there is no easy path. It will take a lot of planning, flexibility and willingness to change some bad habits that led you to this situation. See then how to get out of the red in 8 quick tips.

There is no other way, the first step is to face the debts to know the size of the problem. It is important to calculate exactly what you owe.

You need to get in touch with the creditor companies to find out the current debt amount. Yeah, some expenses grow due to interest. It is important to have this overview of your debts to know the best decision to make when negotiating your debts.

Now it's time to put everything on paper (or Excel for digital users). The important thing is then to record each debt and the corresponding amounts. It is also important to note the value of the installments, the interest rates charged for each one, the installments to be charged and, finally, the total amount.

From this exercise, you can see how much your money is committed per month. So, your priority needs to be to pay those debts without delay.

If after this analysis you realize that it will not be possible to sustain the debt, prioritize debts with higher interest rates. Getting rid of them needs to be your priority as they are the most dangerous debts that grow quickly.

There is no other way for us to give you tips to get out of the red without paying off debts. And it's likely that if you had enough money for everything, you would have paid everything and left the red. Knowing this, we suggest you start by finding a way to earn extra income.

It is important to be willing to pay some debts in cash if you want to speed up the process. Also, this way you can get a good discount. At this time we do not indicate that you choose to take out a loan. Because that way you will be exchanging one debt for another, which may not be advantageous.

So we advise you to look around and ask yourself what is in the house, not being used that can be sold for a reasonable price.

You can start by sharing on your social media that you have some products to sell. Get in touch with friends and people close to you, they may know someone who is interested in your products. It is also possible to promote products through sales applications such as OLX or Enjoei.

Then, items such as electronics, appliances, furniture, especially those not in use, can be offered for sale. This way, you will have a payment fund for your debts. Remembering that the money should be used exclusively for your debts, and the focus needs to be on the most complicated debts with the highest interest rates.

This option, which is among the tips for getting out of the red, is for those who want to exchange an expensive debt for a cheaper one at another financial institution.

It can be an important measure if your bank's interest rates are more expensive than those of the competition. In this way, credit portability allows you to transfer your debt to another bank with lower interest rates, for example.

Therefore, you can apply for credit portability at any time and do not have to be tied to a bank until your debt is paid off. This option generates more competitiveness for financial institutions and more opportunities for consumers.

Research a lot and contact the institution you want to transfer the debt. No institution is obliged to accept your transfer, the bank has the option to choose whether it is advantageous to have you as a customer.

Credit portability may or may not be charged. This therefore varies from company to company. Therefore, it is important to maintain communication with the institution you choose and clear up any doubts before signing a contract with it.

With the tips to get out of the red, you'll correct many bad habits and learn new ones that are much healthier. In this process, then comes the importance of building an emergency reserve.

We never know when things are going to get out of control, but we can prepare in advance for this type of unforeseen event. Being one step ahead gives you the opportunity to solve problems calmly. So the idea here is that you set aside a small amount every month.

When your debts are less tight at the end of the month, start investing in an emergency fund. The money should be equivalent to 3 months to 6 months of usual expenses, so that you have time to plan in a financial emergency situation.

Getting out of the red will only be possible if you have planning, organization and discipline. You don't want to go through the same problem all over again, do you? So, don't spend more than you earn and invest in an emergency fund for unforeseen circumstances. Have control over your finances and be someone more relaxed and organized.

Extra income is no longer a luxury and has become a necessity in recent years. With the advancement of the internet, it is possible to sell products and services online.

Many people invest their time nowadays to dedicate themselves to a business that starts as an extra income and can become a main source of income.

And for you who want to use the tips to get out of the red, this can be a great opportunity to pay off debt faster.

Extra income complements your salary and allows you to have greater financial freedom. You can sell your skills like: cooking, writing or even teaching something new that people are curious to know.

So start by doing a Google search and looking at other people's businesses that have worked in the area you want to undertake.

Gaining inspiration, you can start thinking about your differentiator. If you decide to invest your time to try to earn extra income, you need to organize your routine by defining schedules. Here are some extra income suggestions:

It's worth investing part of your time in an extra activity that you enjoy and is pleasurable, your work can be tiring and stressful enough, we don't want you to have another reason for stress.

One of the most important steps, if not the most important among the tips to get out of the red is to cut costs. Once you know the size of your debts, it's important to start making the cuts as soon as possible. We separate a very valuable tip for you to know which expenses are or are not essential.

There is a healthy trick called the ABCD Method that classifies expenses, then assesses the need for each one and in the end eliminates what is possible.

Group A (feeding): This includes basic expenses with food such as purchases at the supermarket, food, expenses with lunches at the company. Remembering that here only the basics with food come in, nothing that includes expensive wines and the like.

Group B (basic): in this case, they are mandatory expenses that we call fixed expenses such as rent, electricity bills, water, gas and the like.

Group C (contourable): these are expenses that bring practicality to our lives, but they are not strictly necessary, quite the contrary, they can be easily circumvented. For example: ordering food via app, taking trips with app drivers, subscribing to internet and cable TV packages.

The idea is that these expenses stay as long as possible without weighing on the budget. Otherwise, they need to be cut.

Group D (unnecessary): these are the expenses that need to come out of your budget, it can be fees from other cards and all others that you consider unnecessary.

Remembering that the goal here is to classify your expenses. Everything you spend needs to fall into one of these categories for you to see results.

After everything is organized, start saying goodbye to unnecessary expenses and soon after, if necessary, also cut expenses for the “avoidable” group.

If you still make new debts it's time to hold the brake. Your priority needs to be paying, but if you keep spending money on things that aren't really necessary, we're not going to get anywhere even with tips to get out of the red.

In order to be successful in paying off debts and even after it, it is important to change habits and follow this awareness in relation to your financial life.

Temptations will arise along the way, but you need to stay in line, don't give up! Pay your bills on time and under no circumstances delay a single installment.

So to avoid new debts, do not use a card to pay in installments, always choose to pay in cash so as not to accumulate more debts. Take the opportunity to ask for discounts on payment in kind. 

There is, therefore, a perception mainly linked to Brazilians that investment is only linked to multimillionaires. Because of this, many people leave their money in low-yield resources such as savings, for example, which often loses to inflation.

There are great opportunities for those interested in investing, the market is very diversified and more profitable. So we advise that after normalizing your debts, rethink about investment and inform yourself.

Good financial habits need to be learned before you even start having your own money. But unfortunately, financial education in Brazil is a very little known subject. Thus, it is often only learned at the time when you are up to your neck in debt.

Therefore, here we have prepared 8 tips to get out of the red and show you that it's never too late to start. If you liked the text, be sure to follow our recommended content.