Debt negotiation: how to avoid debt in 2023

Debt negotiation is something everyone wants and achieving financial balance is the first step in the right direction. By intelligently negotiating your debts in 2023, it is possible to establish a healthy and stable financial plan.

To avoid accumulating debt, you need to take some preventative measures. Planning your budget properly and carefully managing your cash flow is essential to enter and exit 2023 in a balanced way. Setting savings goals, especially ones that require you to regularly save fixed amounts, and tracking expenses is critical to success.

As soon as you chart a financial course for 2023, organize your debts to negotiate them. Evaluate the amounts owed, fees and deadlines. If necessary, seek help from experts or even close friends who know the subject well.

With all this in mind, it becomes easier to negotiate the amounts owed rationally, which does not harm the family budget. By identifying good and bad deals and opting for the most advantageous ones, you can easily close outstanding debts and preserve your financial health.

Why many Brazilians entered 2023 with debt

Many Brazilians entered 2021 with debt because they faced a series of economic difficulties in 2020. The COVID-19 pandemic brought several challenges, which began to be felt at the beginning of the year, when several commercial activities were suspended due to the need for social protection. The situation was further worsened by low unemployment rates and lower wages due to the economic recession that hit the country during the year.

The result of this was that the finances of Brazilian families were compromised, and many resorted to bank loans to pay their bills and expenses. Thus, many people started 2021 with debts accumulated in banks and other financial institutions. Research shows that around 50% of Brazilians are in debt, and more than 30% of them are unable to pay these debts.

This problem affected many Brazilians, and is probably one of the main factors that contributed to the worsening of the financial and economic crisis in the country. Therefore, the best way to get out of this hole is to seek professional help, if possible, to organize your finances and try to pay off accumulated debts.

How to negotiate debts and become financially free

1. Understand your budget: Understanding what you can adjust to prioritize your debt is an important first step towards a successful negotiation. Gather all your financial statements and know where you can save to pay off your debts if necessary.

2. Talk to your creditors: If you are late, you should first contact your lender as soon as possible. Show them that you intend to pay off debts consistently and without delay and ask if they are willing to negotiate.

3. Propose a solution: If you are talking to your creditor, they will be more open to negotiating if you have detailed plans for how you plan to pay off your debts. Show them you have a repayment plan and show the amount you can break down the payment into manageable steps you can stick to.

4. Negotiate a lower interest rate: If you are talking to your lender and are interested in negotiating a lower interest rate, be proactive about how you pay. You can present your lender with a higher monthly payment and request a reduced interest rate as part of the deal.

5. Be persistent: You may be turned down more than once before you are approved for a reduced interest rate. Be persistent and never give up trying to negotiate with your creditors to get the best rates and payments for you.

Look for online means of communication for debt negotiation

The most commonly used means of negotiating debts online are negotiation platforms and/or websites, online chats, forums and also social networks.

Trading platforms offer a safe, discreet and practical environment for debt negotiation. Most of these sites offer affordable payment solutions to a wider range, allowing the user flexibility and options to negotiate their debts.

Online chats are another great option for negotiating debts. Chats allow debt negotiators to exchange information quickly and affordably, anywhere in the world. They also offer a discreet and flexible environment for negotiations.

Online forums are also a popular and efficient way to negotiate debt. Forums give you the opportunity to explain the details of your debt, as well as its types, amounts and durations. This helps facilitate discussion of the agreement and helps find the best solution for all parties involved.

Finally, social networks are great platforms for negotiating your debts. Direct messaging through platforms like Twitter and Facebook gives users the chance to negotiate directly with creditors. This includes confirming partial discharge and offering a settlement. Additionally, they also allow users to create public or private discussions about their debts.

Conclusion

Debt negotiation can help reduce the cost of paying off debt. This helps reduce interest rates, the total amount owed, and increase the time it takes to pay off the debt in full. Depending on the circumstances, lenders may offer lenders to negotiate lower out-of-pocket payments, eliminate interest rates, reimburse collection costs, change due dates, and other options.

Having a Debt negotiation agreement can also result in a smaller hit to your credit, allowing you to access better rates on future loans or credit cards. Finally, debt negotiation can help confirm that you are not just paying off a debt, but starting to build credit by reporting good payments to the credit bureaus.