Debt Consolidation Tips from Brazil

Debt consolidation tips from Brazil.
In our previous blogs we have seen that Brazilians, like Americans, share a lifestyle when it comes to getting a cheap car insurance quotation. Just like Americans, many companies offer web sites to allow people to get auto insurance online. In this blog, we look at a problem that Brazilians share with their American counterparts, especially among students who have accumulated student debt-getting consolidation loans or credit card debt consolidation.
For the sake of those who are new to this series of blogs, an introduction to the purpose of these series of blogs is given in small print below. If you are a returning visitor, you can skip the small print below and jump to the main article.

Introduction-The American way of life in Brazil
Other than the world's fascination with Brazilian soccer players, Brazil is assumed to by most people to be an underdeveloped 3rd world country. In truth Brazil is South America's largest economy, having advanced industries, and is now considered an emerging economy rivaling China, India and Russia. Not only that, the Brazilian lifestyle has been, unbeknown to most people, a typical western, if not American, in flavor, as we will see.
Brazilians love watching imported television shows and movies translated to their official language, Brazilian Portuguese. Imported television shows have had a significant influence on Brazilian culture. The influence of American TV in Brazil has resulted in Brazilians participating in culture that is considered predominantly American. For example, Brazilian children now participate in Haloween on the same day it is held in the USA. Brazilians also love their Internet. For example, Orkut, a social networking website initially targeting the American audience, now derives over 70% of its traffic from Brazil. All major search engines and social networking groups, including Google, Yahoo, MSN, Youtube, Myspace and Facebook have a presence in Brazil. Instead of using dot com, sites in Brazil often use a dot com dot br configuration, for example http://www.google.com.br/. Often, instead of using www as a prefix, sites in Brazil will use br, for example, br.myspace.com rather than http://www.myspace.com/.
In these series of blogs, we will try to bring out the Americanisms of life in Brazil. We will translate articles touching the everyday lives of Brazilians and see the similarities to their American counterparts and the common problems they share: buying a car, buying a house, choosing a good school, getting loans for education(get student loan), having to get a bank student loan consolidation, buying life insurance(get cheap life assurance quote online, just like Americans), get auto insurance online, dealing with remortgage problems such as shopping for good rates, getting loans to refinance the home(refinance a home equity loan), difficulties in acknowledging mesothelioma(Brazil is one of the world's largest producers of absestos, and acknowledging that a miner is a potential mesothelioma patient is opposed actively by many trade unions), etc. In short, these series of blogs will try to bring out the American way of life in Brazil that that is not documented well by the main stream media.

The following is a translation of advice given to Brazilians who are considering taking the decision on debt consolidation, on whether to consolidate their debt, in particular, credit card debt. The original article is found at http://www.igf.com.br/aprende/dicas/dicasResp.aspx?dica_Id=1485,. The article is mainly directed to those wishing to consolidate credit card debt and are possibly actively searching for a credit card debt consolidation company.
However the princples offered in the advice are equally applicable to any kind of debt - whether you are looking to get a consolidation school loan, whether you want to get a home loan remortgage and are considering switching banks and transferring your debt, or simply just shopping for consolidations loans for the purpose of debt consolidation, perhaps in your business, etc. It is a good example of the kind of professional advice one can expect in dealing with a problem in a society that has embraced the credit card culture, a problem also quite common in the United States, and demonstrates the similarities of the lifestyles shared by Americans and Brazilians.
The Portuguese text is printed in blue, and the English translation of a phrase appears directly below.

Cartão de crédito - Dívidas: será que vale a pena consolidar suas dívidas?
Credit cards - Debt: is it worth consolidating your debts?
Mais práticos e seguros, os cartões têm garantido espaço na vida das pessoas. Diante de tanta comodidade e da maior facilidade para obtê-los, são cada vez mais comuns os casos de pessoas que acumulam vários cartões.
Practical and secure, credit cards have a guaranteed space in our personal lives. Offered such a commodity and the greatest ease of obtaining them, it is increasingly common the number of people accumulating various cards.

Sem saber administrá-los corretamente, estas pessoas acabam perdendo o controle dos seus gastos e, não raro, acumulam dívidas. Nessas horas, vem a pergunta: será que vale a pena consolidar as dívidas dos vários cartões?
Without knowing how to administer them correctly, these people end up losing control of their expenses and, it's not rare, accumulating debt. In times like these, the question arises: is it worth consolidating the debts from the various credit cards?

Não existe uma resposta única, já que a consolidação pode sim ser vantajosa em alguns casos. Porém, em outros pode acabar piorando ainda mais a situação.
There is no single response to this question, since consolidation can be advantageous in certain cases. However, in other cases one could end up making the situation worse.

Qual o seu objetivo ao consolidar?
What's your objective in consolidating debt?
Antes de consolidar a sua dívida, analise com calma seus objetivos. Sua intenção é reduzir os juros? Reduzir o valor da prestação? Aumentar o prazo de pagamento?
Before you consolidate your debt, in a calm and relaxed atmosphere, analyze your objectives. Is your intention to reduce the interest? Is it to reduce the amount paid on each installment? Is it to get an extension of the period in which you are required to repay the debt?

Se sua intenção é apenas reduzir o valor da prestação, através do alongamento da dívida, é melhor pensar duas vezes. Nos dois casos, você vai acabar gastando ainda mais com juros, de forma que, ao invés de resolver, vai aumentar o seu problema!
If your intention is only to reduce the amount paid per installment by extending the date repayment period, it's better to think twice. In both cases, you will end up spending even more on interest, so that, instead of resolving the problem, will only make it worse!
Por outro lado, se a sua intenção é rolar uma dívida mais cara a juros mais baixos, a transferência de saldo do cartão de crédito não é a opção correta, pois não ataca a raiz do problema - que é o fato de o seu saldo devedor crescer mais rápido do que sua capacidade de pagamento.
On the other hand, if your intention is to move from a more expensive debt to one with lower interest, transferring you outstanding balance on your credit card is not the correct option, because it does not attack the root problem-the fact of your balance due increasing more rapidly than your ability to repay.

Você deve encarar a transferência, ou consolidação, de saldo como uma segunda chance que não pode ser perdida.
You must approach transferring, or consolidation, of balance due as a second chance that must not be misused.
Durante o período de carência a nova administradora está disposta a oferecer juros atrativos para ajudá-lo a resolver suas dificuldades financeiras. Ou seja, ela só deve ser considerada se permitir uma redução dos gastos totais com juros e, conseqüentemente, possibilitar a quitação da dívida.
For a grace period the new debt administrator is willing to offer you attractive interest rates to help you resolve your financial difficulties. That is, the offer should only be considered if it will permit the reduction of your total interest rate expenses, and, consequently, the possibility of the elimination of your debt.

Não perca a sua 2a. chance
Do not not misuse your second chance.

Não existe espaço para novos erros. Se você mantiver os velhos hábitos, e continuar gastando mais do que consegue pagar no cartão e, portanto, elevando todos os meses o saldo devedor, muito provavelmente a instituição pode optar pela adoção de uma taxa ainda mais alta depois do prazo de carência.
There is no room for more errors. If you you continue to maintain old habits, and continue spending more than you can pay on your credit card, and therefore, each month increasing the balance due, it's very probable that the lending institution could opt for the adoption of an interest rate even much higher after the grace period.

Lembre-se que o seu histórico de crédito como um todo está sendo analisado. Mesmo que você não atrase o pagamento do novo cartão, basta que não pague em dia uma outra conta, que os termos do seu cartão podem ser revistos. Daí a importância de você se informar, com antecedência, sobre que situações podem levar a uma revisão das taxas cobradas no seu novo cartão.
Remember that your credit history as a whole is being analysed. Even if you don't delay on your payments on the new card, it's sufficient that you one day skip a payment and the terms of your card could be revised. As such there is the importance of you informing yourself, well in advance, about the scenarios that could lead to a revision of the interest charged on your new credit card.

Qual cartão escolher?
What card should you choose?

Caso tenha decidido consolidar suas dívidas em um único cartão, avalie com cuidado todos os cartões que possui. Pesquise os termos e avalie as condições oferecidas pelos vários bancos emissores.
For the case that you have decided to consolidate your debt into a single card, evaluate with caution all your cards that you possess. Research the terms and evaulate the conditions offered by the various banking institutions.

Sua preferência deve ser pelo cartão que oferece a menor taxa de juro. Porém, verifique antes as condições em que esta taxa é oferecida. Leia o contrato com atenção e esclareça todas as suas dúvidas. Alguns bancos oferecem juros mais baixos apenas por um determinado período de tempo, ou sobre parte do saldo devedor.
Your preference should be a card that offers the least interest rate. However, verify before the conditions under which the interest is offered. Read the contract carefully and identify clearly each of your outstanding debts. Some banks offer much lower interest rates only for a determined period of time, or for part of the outstanding balance.

Nesse caso, pode valer a pena optar por um cartão que oferece uma taxa um pouco maior, mas por um período maior de tempo e sobre todo o saldo devedor. Faça as contas com calma e opte pelo que implicar em menores gastos com juros. Não incorra em mais gastos neste cartão, até que tenha pagado integralmente a sua dívida.
In this case it's worth opting for a card that offers an interest rate slightly higher, but for a greater period of time and for all the outstanding balance. Do your math in a calm and relaxed manner and opt for what it implies in terms of the least expenses on interest. Do not incur further costs on this card, until you have completely paid off your debt.

Cuidados na hora da transferência
Caution at the time of consolidation.

O fato de você estar transferindo o saldo devedor de um cartão para o outro não significa que deva abandonar, por completo, o pagamento das antigas faturas. Enquanto o saldo não for transferido, e isso pode levar algumas semanas, você continua sujeito aos encargos do antigo cartão.
The fact that your are transferring outstanding balance from one card to another does not signifiy that you should completely abandon the payment of your old bills. While the debt is being consolidated, and that could take a few weeks, you continue to be subject to the dues on the old card.

Assim, é recomendável que se esforce, ao menos para pagar o valor mínimo exigido na fatura. Mantenha os pagamentos em dia desta parcela, afinal você não precisa gastar mais do que já deve com multa e juros por atraso, não é?
As such, it is recomended that you make an effort to pay at least the minimum required on your invoice. Keep the payments up to date on this portion of your debt, after all you don't need to spend more than you should on penalties and interest for late payments, should you?

Além disso, se você não mantiver esses pagamentos, a instituição pode achar que a sua situação piorou, o que pode levar a uma revisão dos termos inicialmente oferecidos.
Apart from that, if you do not maintain these payments, the institution(offering you debt consolidation) might think that your situation has worsened, that could lead to a revision of the terms initially offered.

Mesmo que tenha sido notificado da transferência pelo banco emissor do cartão no qual a dívida será consolidada, certifique-se de que isso efetivamente aconteceu.
Even if you have been notified of the consolidation by the banking institution issuing the card that will consolidate your debt, certify this yourself in person that it is indeed the case.
Entre em contato com a central de atendimento dos bancos emissores dos cartões de onde irá transferir saldo e confirme a transferência. Anote o nome das pessoas com quem falou. Peça um extrato final, que confirme a transferência.
Enter into contact with the head office of the banking institution issuing the card and to which the balance due will be consolidated and confirm that the consolidation has been executed. Request a confirmation extract .

Feito isso, cancele o antigo cartão! Não se sujeite à tentação de deixá-lo no fundo da sua gaveta, pois você pode acabar usando-o novamente. Isso sem falar que mantê-lo, provavelmente, significa pagamento de anuidade, e você não tem dinheiro para desperdiçar.
Having done that, cancel your old card! Do succumb to the temptation of leaving it at the bottom of your drawer, because you might end up using it again. That even without mentioning that maintaining it most likely signifies annuity fees to keep it, and you don't have money to throw away.

(End of translation)
You can contact me at translate_brazilian_portuguese_to_english@hotmail.com,.

---

Potentially useful services
Health & Nutrition	Health Insurance
Buy/Sell property in Brazil	Certify yourself to teach English in Brazil
Web/Internet services & Computer Software

---