If you need to know how to do a debt refinance, do not feel alone; this is a very common question, which takes away the sleep of many indebted Brazilians.
That’s why in today’s post we’ll help you eliminate it and give you some background information on how this process might occur, some of the possible pitfalls, and what to do to get the best deal for your pocket. Come on?
What is debt refinancing?
Those who have debts and are either dirty or are about to send them to the SPC have the possibility to renegotiate what they should and do the debt refinancing to clear debts and avoid bigger problems.
Debt refinancing, therefore, is when this negotiation is done with the lender, the debt is refinanced in new installments, and may have lower interest to the debtor. In this way, the name is removed from credit protection agencies from the payment of the first installment.
What debts can be renegotiated?
The vast majority of debts can be renegotiated. This facility can be requested for either a consumer debt or a credit debt such as loans, financing or even your credit card.
Tax debts, with the Federal Revenue or Social Security, can also be refinanced. Those who have pending matters with these bodies have the possibility of joining the government tax debt regularization program. If the debt is with your state or municipality, you should look for the specific incentives of each one of them.
How to do debt refinancing?
To start the process of refinancing debt simply contact the lender and make the request.
Normally, lenders themselves look to see who owes and offer proposals for renegotiation of values, and you can take advantage of this opportunity to regularize your situation.
Some banks and financial institutions also offer the option of renegotiating online, simulating the best debt repayment terms and preventing you from having to travel to an agency in person.
How to get the best deal?
To prepare to negotiate a debt refinance agreement with your creditors, you can follow three basic steps that will help you to ensure the best deal:
- Learn more about your debt: not knowing exactly how much debt you are dealing with, you will not be able to put an end to them. Gather all your monthly claims from lenders and make a list of who you owe and how much it will cost for you to pay off those debts;
- Plan to make a realistic proposal: there is no point in getting out of the renegotiation with an agreement that you, again, can not meet. Do your financial planning and understand how much you can spend on debt repayment to make a realistic proposal;
- Do not get carried away by the emotions: dealing with our pockets always affects our emotions, but when it comes to negotiating your debt refinancing you need to be careful not to let it get in the way of your deal. Do not sign anything in the heat of the moment and take the contract to read calmly at home. A good tip is to ask some lawyer friend to read everything before you sign.
As a last tip, it may be worthwhile to apply for a personal loan online, fast and less bureaucratic, to consolidate your debts in one and to defuse your financial situation!