???? Learn how to invest with me in Brazil and around the world: https://sard.ink/3YDge4n Many people wish at this time of year that they could pay off their debts and have a 2023 with more control over their spending. But is it worth paying off your debt to the bank? Are there practical ways to pay off this debt, get out of debt, and have a more peaceful financial life? The truth is that Brazil has one of the highest interest rates in the world. And this makes it difficult for many people to pay off their debt to the bank or their credit card debt. Today, bank interest rates exceed 280% per year, which would make a debt of R$5,000 reach R$72,000 in just two years. How do you pay off your debt to the bank? First of all, it is important to know that the vast majority of debt contracts signed with the bank have some type of irregularity. This can include tied sales, charging fees, and even abusive interest rates (much higher than those practiced by the market). So, one way to get rid of a very large debt with the banks is to check whether the contract was respected. If there was an irregularity, you should file a lawsuit to review the contract and reduce the amount of the debt. Another tip is to not pay the debt right from the beginning, when the bank charges you a much higher amount to settle. After a while, the bank ends up giving in and offering better conditions, with an increase in the payment term and a reduction in interest. If negotiations are very difficult, you can also request the portability of the debt and negotiate the debt with another bank. What if I don't pay the debt? If you are unable to pay the debt, the bank will be able to set aside all the money that goes into your account and, eventually, sell some assets to reduce the payment. However, the bank cannot, for example, seize your own home to pay off the debt. In the case of a vehicle loan, your car can be seized and sold at auction. Does the debt expire after 5 years? Most people think that the debt with the bank expires after 5 years. In fact, this is the statute of limitations if the debt is NOT COLLECTED at any time. Another thing to understand is that, after 5 years, your name will be cleared in the SPC and Serasa, but this does not mean that the creditor cannot continue to collect from you. Furthermore, after 5 years, your credit score will be “dirty” forever. This means that it is unlikely that you will be able to get credit from any bank, since the data is shared between financial institutions. Is it worth paying the debt to the bank? That said, is it worth paying the debt? The most correct answer is “it depends”. If you have made a commitment and signed a contract, the correct thing to do is to pay the creditor, as long as the rates and conditions stipulated by the bank are not abusive. On the other hand, there are situations in which it simply becomes impossible to pay off the debt. When the debt is old and has already snowballed, perhaps the best thing to do is to pay an amount GREATER than the original debt, but LESS than the total amount generated by compound interest. This way, you won't harm the bank, but you won't be forever desperate for an unpayable debt. In the future, you might be able to get better conditions to pay off the debt! Do you also think it's worth paying off the debt with the bank? Have you been through or are you going through a difficult time with your personal finances? Tell us in the comments. Take advantage and subscribe to the channel and leave your like, so we know you're swimming in the right direction ???????????? ???? Follow me on Instagram: @oraulsena ???? Our closed group on Telegram: https://t.me/investidorsardinha Financial education is for everyone and Raul Sena will prove it to you! Do you want to advertise with me? The email is this: [email protected] 00:00 Introduction 00:56 Abusive interest rates in Brazil 02:31 Contracts signed with banks may be illegal 04:14 Debt portability 04:42 What happens if I don't pay the debt? 05:37 Does debt expire in 5 years? 07:10 Is it worth paying the debt to the bank? 08:30 What to do with an “unpayable” debt 10:45 Don't be dishonest 11:49 Become a partner of the banks 12:10 Learn how to invest in the Stock Exchange