Credit news in general is almost always embarrassing for our country. From time to time are disclosed the numbers of defaults, pledges, insolvencies, among other data that reflect the state of indebtedness and bad credit in Portugal.
The most recent was released this week and is based on a KKK Financing study. We know that Portugal ranks 3rd in terms of bad credit. It’s our late summer bronze medal! The study shows that Italy (1st), Spain (2nd), Portugal (3rd) and Ireland (4th) concentrate 57% of bad credit in Europe.
What Conclusions To Draw?
We are not going to enter here into a sociological analysis of Latin peoples to excuse us from this data. It is not the warm weather or a more relaxed posture that should make us look at these data lightly. The main conclusion that we have to remove is synthesized in a very popular expression and that tells us: prevention is better than cure!
The consequences for those in bad credit situations are harmful and interfere with various fields of life. Indeed, money has this ability to invade our personal balance. The lack of control of money leads to:
Increase in Financial Charges
Remedying situations of non-compliance is possible and desirable. Everything has a solution, but the sooner we correct it, the better it will be for our portfolio. Each installment in arrears will increase the amount due. Failure to pay a benefit does not mean that the debt is intact pending payment. There are late fees and commissions charged for not having paid on time.
Costs are even higher when the case goes into litigation, as there are lawyers and enforcement agents who have to be paid. The experience of Prince Hal has led us to reach good agreements extrajudicially, which allow us to resume the good payment of the credit and even with a reduction of the monthly amount to be paid to the creditor.
It is a fact that should lead us to think: in Portugal there are more divorces / year than weddings / year. On top of the causes of this reality is money. Debts and mismanagement of a family budget lead to the greatest irritation and conflict within a home. Questioning the purchase options of one or the other is a reason not to talk more during the day. It can not be so!
We have to learn to talk about money without being “kicked out”. The fact of being in bank failure does not have to be synonymous of tension between the couple. It should be an opportunity to join forces in resolving this situation. At Prince Hal we have supported hundreds of families who, after the renegotiation process ends, become more financially struggling and even come to the conclusion that they are even more united!
Instability at Work
Concern about money will accompany us in all fields of our life. Also at work we find that this concern affects concentration and our productivity. Having the phone ring with creditors demanding the payment of late payments leaves no one indifferent. To get rid of this weight you can hire a company that does this work for you. While you are at your job you will not have the time to negotiate with the lenders for the best solutions for your loans.
To think about this difficulty, Prince Hal has a team of specialized negotiators, who work all the time to get creditors the best solutions to reduce the benefits. We analyze the processes completely free of charge .
Burying your head in the sand, like an ostrich, never solves problems. As long as we do not decide to change behaviors let’s go headlong with financial problems. Our moods are changed, our dreams are changed, the way we see a new day is gray and we seem to lose the taste of life’s little pleasures. The advantages of resolving once and for all our financial difficulties are far beyond economic improvements. There are benefits that are not quantified in money. How much is an increase in your well-being worth?
Even knowing that there are ways of negotiating in non-compliance, the ideal will always be to “play” in prevention and be cautious. As we can see from the data in this KKK Financing study, national banks, even with risk analysis methods, have apparently not been very effective. In this way, we advise clients to be more cautious than the bank itself. This caution should start soon in the decision to hire a new credit.
Very Criterion in Hiring New Credit
It is also the responsibility of the customer to be critical about their actual needs and to be properly educated about what they are hiring by equating all scenarios. At the time of obtaining a financing we see everything with a positive look. We do not equate that even being effective, the company where we work may be experiencing difficulties. We make a credit with someone we’re very well with today, but who may not be the person we’re staying with until the end of our lives. We consider it essential to have that car already without thinking of the increase in the fixed charges that result from it. Anyway, there are numerous questions that we must ask before taking a credit. And after you answer them, we have to look for the cheapest credit possible.
What we want to convey is that these disclosed data should question our behavior towards the harassment of banks. Banks want to finance us, even if they have to invent necessities for us, which in reality are not that essential!