5 steps to clear your name

Are you in debt and don't know what to do? Learn how to clear your name in 5 steps and get out of debt once and for all.

We currently have more than 60 million defaulters in Brazil.

The most common and also the most complicated types of debt are credit card debt, loans, or bank debt.

If you fail to pay one of these debts, the compound interest charge could reach more than 500%.

So, check out 5 steps to clear your name once and for all.

1 – Check your CPF

The first thing you need to do is figure out the extent of your problem. That is, check the total amount of your debts and which companies you owe. 

To do this, you should check your CPF with credit protection services or debt renegotiation companies.

2 – Make your financial plan to pay off your debts

This is the time to look at your financial situation and calculate how much of your monthly income you can dedicate to paying off your debts.

To do this, you must define a monthly amount that fits your budget and that can be used for installments of your agreements.

The ideal is to always set aside at least 20% of what you earn to pay off debts.

If you can't pay off all your debts at once, carefully analyze which one you should pay first, considering interest rates and negotiation conditions.

An important tip is to seek information about the Over-Indebtedness Law, created in July 2021, which seeks to help people in situations of financial instability through measures that guarantee greater consumer security.

3 – Renegotiate your debts

With your debt settlement plan in hand, look for offers to negotiate your debts.

One way to do this is to check out the offers available to you at Acordo Certo, an online debt renegotiation company that offers discounts of up to 99% and has partnerships with more than 30 companies from various sectors.

If you can't pay off all your debts at once, consider making an installment plan.

If you still need to choose a debt to start clearing your name, the golden tip is to give preference to high-interest debts such as credit cards, loans, and financing.

These should be the first debts to be paid.

4 – Have discipline and fulfill your agreements until the end

There's no point in starting to pay off your debts to clear your name and then stopping halfway, right?

So commit to getting your name clean now and ensuring an improvement in your score, which is so important for a healthier financial life.

Mark your bills' due dates in your calendar. To avoid problems, pay at least one day in advance and remember to keep all receipts.

5 – Education takes time, but learn how to manage your money

If you think that paying your debts will make your name clean forever, you are very wrong!

You need to create good financial habits so that the credit system understands that you are now a good payer.

Therefore, clearing your name and continuing with bad money habits will not help you improve your Score.

How long does it take to clear your name?

Now that you know the steps you need to take to clear your name, it's also important to know that the credit protection service won't remove the restriction on your CPF until the company you're applying for does.

They only serve as an intermediary and a notifying company of financial, legal, and even notarial issues, such as protests. Therefore, even if you pay off your debt, it may take longer than expected to clear your name.