Renegotiating and prioritizing expenses can ensure greater peace of mind and balance in unforeseen situations.

Financial emergencies can arise at any time, threatening the balance of your budget. Unexpected debts require quick action to avoid major complications and maintain your financial health.

An effective option is advance the FGTS and pay off urgent debts. This strategy relieves financial pressure without compromising your future finances, offering a much-needed respite.

But, in addition to this, there are several ways to pay off your debts. Below, learn about six strategies for doing so.

1. Renegotiate debts for more favorable terms and rates

Negotiating your debt is an interesting way to pay off a debt. Most banks and financial institutions can offer better payment terms, either by reducing interest or allowing smaller installments so that you can pay off the debt.

Being clear with financial institutions can also improve your relationship with the bank, which is an advantage if you want to use other products from the institution. Therefore, try to contact your account manager and make a proposal to renegotiate so that you can finally pay off the debt.

2. Prioritize essential expenses and cut out unnecessary ones

During a time of financial hardship, it is essential to know how to prioritize. This means reviewing all your expenses and identifying which ones are truly necessary, such as:

• housing expenses;
• food;
• health;
• education.

The items listed above should be a priority in times of financial hardship. Once you have defined them, you can try to reduce spending on entertainment, subscriptions, and delivery.

This allows you to have more money to pay off debt and ease your finances.

3. Use financial reserves

The financial reserve is planned precisely to cover unexpected expenses without harming the monthly budget. Using the fund to pay off emergency debts prevents you from resorting to loans or increasing the amount of the collection.

But remember: when using your emergency fund, it is important to start replenishing it as soon as possible. This way, you ensure that you will have financial support for any unforeseen events in the future.

4. Consider the FGTS advance

Advance payment of the Severance Pay Guarantee Fund (FGTS) is a viable alternative for paying off emergency debts.

This option allows you to use the available balance in the FGTS in advance, receiving the amount in a single payment. Payment of the installments is made annually, deducted directly from the balance of active or inactive accounts.

This strategy is advantageous because, unlike traditional loans, interest rates are lower and you do not compromise your monthly budget.

5. Avoid new high-interest loans

Many people's first reaction when faced with emergency debt is to resort to new loans. However, this practice can make the situation even worse when the interest rates on the new credit are higher.

Always opt for lines with lower interest rates, such as a payroll loan, which deducts installments directly from your benefit or salary, or personal credit with collateral.

And remember: only take out a new loan if the conditions are really advantageous and if you have a solid plan for repayment.

6. Sell items you don’t use

If you have possessions or items that you no longer use, considering them as a temporary source of income can be a good option.

Selling electronic products, furniture or even clothes and accessories in good condition can generate extra money that will help pay off emergency debt.

By making these sales, you solve two problems: you generate resources to pay the bills and eliminate the feeling of accumulating unnecessary objects, which contributes to a more organized and functional environment.