There are many Portuguese who resort to credit – and especially to cards and personal loans – and often find it difficult to pay. To avoid getting into the new coming year with debt, know six easy ways to repay the credit you have incurred.
1. Are you in need of some financial assistance? We’ve got good news – can help consolidate cash advance loans
Consolidating is the watchword. If your effort rate is above the recommended level and if you have more than one payday loan it is recommended to put all of them together- try here.
This will make it easier for you to manage your personal finances because the monthly installment will be reduced, the payment term can be extended and your monthly budget will be relieved to pay the credit.
2. Know the modalities of reimbursement of your credit card
The first information you should know is that, since you do not have the money available in your account, you have until the end of the month to repay this amount without having to collect interest.
Also, note that a large part of the available credit cards allows you to make split payments. Through this option, you can pay the credit through monthly installments that can go from 6 to 48 months, depending on the value and the financial institution.
However, it should take into account the interest rates applied, since these will set the total value of the loan and thus impact the monthly installment. To choose this solution you should always contact the financial institution issuing the credit card.
By knowing how the payment of the debt of the card works, you can start the correction process to pay the credit. There are banks that offer credit cards that are more advantageous than others, depending on your needs and how you use them.
Can credit card debt be charged in Portugal?
If the debt is prolonged and you can not pay your credit card, be aware that you can see your salary pawned. This reduction can go up to a third of the value of their income, up to the limit of the national minimum wage.
If the debt is very high, you may even have some assets seized. However, it is important that you avoid getting into default. Always try to renegotiate with the financial institution to get better terms because of your current situation. It can, for example, extend the term of payment of the debt to more easily support the payment of the monthly installments.
3. Use the Christmas allowance to pay the credit
Instead of using your Christmas allowance for gifts from family and friends or to buy supper products, consider using it to pay off debts.
When you repay the amount you owe to a financial institution you will see the total cost of the loan decrease and thus the monthly installment you will pay to the bank will be lower. However, please note that by doing so you may be charged an amortization commission – the amount of which is described in your credit agreement. Do the math to see if it pays off or not, pay off and pays off the credit in full.
Finally, the decision to cut down has two weighty variables: the amount that is in debt and the interest rates associated with the credit agreements. The higher the fees, the more it pays to repay part or all of the debt.
4. Start saving
One solution to paying off credit is to start saving. With the interest earned from an investment product for savings (a time deposit or a savings certificate, for example), the interest amount is adjusted and the amount owed can be repaid more quickly.
It is important that each month you take a percentage of your income – ideally between 10% and 15% – and place it in a savings product that is easy to redeem, such as a savings account. If you prefer, you can even build a piggy bank with the purpose of paying the credit.
Take advantage of this Christmas season to consult our Advent Calendar for this Christmas of 2017. Here you can find a financial tip per day up to the day before this very special date, so you can easily support this height that, as a rule, entails a greater budgetary effort:
5. Are you in default on personal credit?
If you are having difficulty paying your personal credit, be aware that you can negotiate with the financial institution to ease your monthly budget. For example, you may ask to extend the loan repayment term.
6. Try to get additional income
If you can supplement your income with a part-time or some type of self-employment, you can generate an extra income stream that will allow you to have greater financial flexibility and easier management of your monthly budget.
You can, for example, sell items you no longer want or use at lower prices. You can spend a few hours per week doing babysitting or even pet sitting. With some of that extra money, you can not only increase your savings but also repay the outstanding debt.
With these six tips, you can easily pay off the credit you currently have. Take advantage of these suggestions in your day to day to manage, in the best way, your monthly budget. It is very important to keep in mind that if you need to use the credit limit on your credit card, there is no need to pay interest on this amount to settle the debt to 100% within the time provided by the bank.