If you started the year with debts Don't despair, because just like you, many people have already started the year in debt.

But to get out of debt and have your finances in order in 2023, there's no magic bullet, just serious dedication and commitment.

As if it were a new behavior, both in the way of thinking and acting.

The consequences of the pandemic have led to millions of Brazilians becoming unemployed.

As a result, 2021 was a very difficult year for most of the population.

In the first months of the pandemic, Brazil experienced a surge in the number of people in debt, reaching almost 66 million individuals. debts in arrears as of April 2020, according to data from Serasa.

Some measures taken by the Government during 2020, as well as the increase in interest rates, managed to reduce the number of defaulters.

However, in November 2021, the number of Brazilian families with debts Overdue payments reached their highest level since January 2010, reaching 74.6%.

This data comes from the National Survey of Consumer Indebtedness and Default (Peic), conducted by National Confederation of Commerce of Goods, Services and Tourism (CNC).

This means that in every four Brazilian families, at least three have Accounts payable.

In addition to the financial difficulties faced by many families, a lack of organization and planning are also among the causes of debt.

However, the start of the year is a great time to begin building a healthier financial life.

In this article, we've put together some tips to help you get your finances in order in 2023.

So be sure to read until the end!

1. Know how much and where you should

• Certificate of No Protest: Issued via the Internet

If the expenses of 2022 have carried over into 2023, it's time to sound the alarm.

If this happened, don't despair!

To begin regularizing your debts And to get rid of them, first of all you need to know which ones. debts you have, that is, where you should and what is the value of your Overdue bills.

One of the best ways to organize this information is to put all outstanding debts on paper or in a spreadsheet, placing those with the highest interest rates at the top of the list.

In this situation, avoid creating new debt as much as possible and prioritize paying off bills with higher interest rates first, such as overdrafts and credit cards.

2. Understand your budget.

Next, you need to calculate your monthly income (revenue) and expenses (expenses).

Just like you did with the debtsWrite down all your fixed monthly expenses, such as rent, loan payments, condominium fees, school tuition, utility bills, etc.

For variable expenses, estimate the cost and set aside a little extra in case of surprises.

Understanding your budget will make it easier when negotiating your... debtsThis will allow you to know how much of your budget is already committed and how much you can allocate to paying overdue bills.

Furthermore, Avoid taking on new debt.Unless it is absolutely necessary.

3. Negotiate your overdue debts.

Before negotiating the debts If you're behind on payments, you need to know how much you can afford to pay each month so you don't have to strain your budget for the following months.

Next, if you have many debts If you're in arrears, the first tip is: start negotiating the... debts that have higher interest rates, such as credit cards or overdraft facilities, for example.

In addition, give priority to the debts related to essential services.

4. Implement financial control.

Nowadays, it's possible to manage your finances using a spreadsheet or a financial tracking app.

To do this, write down the salary that will be credited to your account and any additional income. Then, enter your expenses and costs.

This way, you'll be able to visualize the projected expenses throughout the year and the associated expenses for each month.

Furthermore, it's possible to create an interactive dashboard to help identify which sector is consuming the largest portion of your monthly budget, as this is likely the sector that needs expense cuts.

But there are other options as well: according to Macedo, from UFSC, there are apps, such as, for example, the GuiabolsoOrganizze and Wallet can be a good option for those unfamiliar with spreadsheets.

However, users should be aware that apps don't do everything, so organization is necessary.

5. Set goals.

Another important part of financial control is being able to set goals and determine how long it will take to achieve them. This makes it easier to see why you are controlling your spending, as well as helping to direct your effort (sometimes even towards a reward).

Paulo Gallo, a finance professor at the Getúlio Vargas Foundation, says the secret lies in planning and prioritizing each goal.

According to Gallo, “There are many good things we do for ourselves, but we don't do them just because we want to. You have to define a clear objective. You need to quantify the goal and create data, set monthly and intermediate goals, as well as outline big goals.”

Getting in and out of debt, making impulse payments and buying things can seem like an endless cycle, but with small actions, creating small habits and goals, it's possible to transform your financial behavior.

Therefore, simply creating a financial plan isn't enough to get your finances in order; you'll also need to change some habits.

6. Don't spend unnecessarily.

To help you pay off your debts faster, another tip is to reduce or even cut out some expenses during this period.

However, sometimes you become so accustomed to these expenses that you don't realize the difference they make to your monthly budget.

So, the first step is to put these expenses on paper to find out how much of your income these expenses are taking up.

Next, you need to identify what is truly a priority and which expenses can be cut or reduced in cost, starting with the things that are not essential in your life.

Unfortunately, some expenses cannot be cut from your budget, such as rent, mortgage payments, food, water, electricity, gas, health insurance, etc.

Therefore, at this moment you will need to give up some things in order to achieve your goal, which is to get rid of your debts.

Another recommendation is to avoid visiting store websites, apps, and social media profiles, so as not to fall into the temptation of unnecessary spending.

Algorithms don't make life easier for consumers either: ads are becoming more targeted, even for products that people previously considered unnecessary.

According to Viriato, some simple actions can prevent Brazilians from being tempted to buy, since "Buying is usually impulsive, so avoid carrying credit cards and prefer to have cash in your wallet. Turn off your credit card on your cell phone and don't enable Pix payments," he suggests.

7. Save money for unexpected events.

When reviewing your financial priorities, in addition to paying off debts and installments, set aside a portion of your salary that is compatible with your financial situation to start an emergency fund.

This way, it's possible to ensure that, in case of unforeseen events, the money saved can be used to resolve the situation without going into debt.

Macedo emphasizes that the first step is to get rid of the debts that are consuming your budget, and then build up savings.

Furthermore, the expert states that the money should be invested without risk. Therefore, in this case, it is more appropriate to invest in savings accounts or government bonds, which offer higher returns.

8. Look for opportunities to earn extra income.

If you realize that your current earnings aren't enough to cover your monthly expenses, especially during a crisis when products and services are more expensive, another tip is to look for ways to earn extra income.

Depending on your availability, it's possible to find temporary jobs or offer services that can help supplement your income at the end of the month, such as working as a rideshare driver.

Furthermore, there are currently several websites where you can register and get paid to answer surveys or even to review a store or product.

Another way to earn extra income is by selling clothes and items that are no longer in use at home.

But if you choose to do so, check that the items are in good condition before putting them up for sale.

*Source of research: https://www.cnnbrasil.com.br

https://serasa.com.br/ensina/seu-nome-limpo/10-passos-para-sair-das-dividas/