Paying debts is certainly one of the best ways to recover credit in the market place. The badly planned debt undoubtedly negatively affects the lives of thousands of Brazilian citizens. Since the debts contracted with credit card that is the champion in letting people indebted, the student loan also, although favoring in the undergraduate student, the debt keeps rolling for up to 13 years, mortgage loans with installments debts that can be made in up to 35 years here in Brazil, and several other types of loans. What we can not forget is that debt is also an exceptional tool to leverage money, grow professionally or gain capital.
On the other hand, if the person is uncontrolled and undisciplined, credit that once might be the cornerstone of finances, is no longer a good measure to become a stakes, smelling the debtor consumer down to sinking it completely. In that case, credit is a tool for fools. Most people have debts, some good or bad, many get debt for not knowing how to use credit systems, and a good part uses them as a means to win, to profit and to progress, but this situation is not for many.
In the middle of acquiring debts , paying debts and making debts we find many silly “myths”, “lies” and “inventions”, let’s just list three of them:
Paying Debts to Have Instant Credit
A good part of the people believe that if “pay debt” in one day, tomorrow the credit in the square is already available. Paying debts, usually helps you in recomposing your credit history at Serasa, SpcBrasil, Equifax, and other protective bodies, your credit score will also be affected for the better, but one thing is for sure, paying your debts will not erase from one time to another the trail left in the lenders or in the financial system. To get back on credit, it often takes months to get rid of the negative information.
To improve the view of creditors regarding a consumer, participating in the positive registration will be the best chance to be able to show that you are a good payer, again.
All the debt is bad
Not all debt is bad. Much is speculated about good debt and bad debt, “debt is debt,” but knowing how to use it makes all the difference, for example: borrow money to buy assets that will increase your equity or invest money to make more money. Let’s say good debt is, make a student loan, a mortgage loan or small business loan or working capital.
As with any line of credit or financing, the important thing is the borrower to make sure they can afford to pay their good, bad debts and keep their bills up to date.
Large debts are priceless
Paying debts only get paid with Faith, Work and Planning, throwing everything up must be your last option, before giving up paying your dues, you should consider many other alternatives. Some of them are: the renegotiation of debts, the consolidation of debts, the anticipation or settlement of debts. In Brazil debt consolidation is done in other ways, but the modality serves the same purposes, joining several loans into a single payment or lower value payments. This new debt will generally benefit from a reduction in interest rates or installment values.