Nowadays having a debt is normal, just think of all the people who have contracted a loan for which they regularly pay the installment once a month.
At one time, credit institutions, banks or financial institutions, granted mortgages, loans and loans for the most varied types of purchases. Home, cars, motorcycles, home appliances, smartphones, travel and much more. This has meant that many people and families today have entered the vicious circle of debt or, in the worst case, are facing over-indebtedness.
How do credit institutions think?
Whether we are talking about companies or individuals, both categories have the possibility of entering the credit circle more or less easily, based on certain requirements that the financial world requires. In the eyes of financial institutions, however, the division of debtors takes place on the basis of income, the presence of an undetermined job and a particular characteristic: solvency. If a debtor is solvent, or rather, constant, this is called “performing”: the constancy of payment generates a fundamental watershed in the eyes of those who grant credit because it can consider the subject in question reliable. Consequently, if the subject is not reliable, the Bank will have more difficulty in granting money if it decides to request it and in most cases it is possible that the latter will be rejected.
In bonis and bad payer: what are the differences?
There is therefore a border that divides performing debtors from those who fail to honor their commitments. Crossing the border does not happen immediately but rather is the consequence of a period of insolvency. At this point the question arises: what must be done to avoid crossing the border? What are the strategies to put into practice so as not to become insolvent?
With this section we want to give you some little advice to help you not cross the threshold that could lead you to become a bad payer.
But let’s start from the beginning: where to start to avoid becoming a bad payer?
First of all, to have no debts, you have to stop making new ones or waste more money than you have in your account.
In most cases, this is a vicious circle that many people today live in, articulated with consequential logic and composed of four phases, specifically:
- spend more than you earn;
- drastic reduction in spending capacity;
- subscription of a debt;
- underwriting an additional debt to repay the first debt and maintain a high standard of living.
It goes without saying that this modus operandi cannot be maintained indefinitely, especially if you are thinking of refinancing your first debt. At this point, before starting to think long term, it is necessary to start from the first step, the most important one: to be aware.
The awareness consists in the admission that there is a problem and that this must be solved. Only by admitting can you start thinking about how to behave from here on out. It’s difficult, but it’s the most important step. Of course, there are situations that almost necessarily involve the signing of a loan but there are as many that do not require it. The latest car model or new phone is unnecessary expenses that can easily be avoided if you are experiencing financial difficulties.
The strategies to save exist but, before putting them into practice, it is therefore necessary to acquire a good dose of awareness to be able to successfully face the path that will bring you back to performing.