The decision to get a payday loan requires weighting. First because it is a new debt, and brings interest and other associated fees. So, if not taken care of in the day, the debt can bring more problems than solution. So, before taking a payday loan, the consumer must evaluate some points, and only then find out when is the right time to apply for the payday loan.
When to get payday loan?
The payday loan can be an expensive credit. It charges interest, insurance rates – which will give security to the financier in case of death or accident of the credited – and also guarantees. So there are only three situations where getting a credit is the best way out: emergencies, funding a course, repaying a more expensive debt.
In the first case, emergencies, we can mention several occurred. A medical case, for example, is considered an emergency. The renovation of the house, which is with part of the lining compromised as well. Even the purchase of an appliance that has stopped working, or the exchange of the car, damaged in an accident, can be considered.
Generally speaking, emergency is the time when money is really needed, and there is no other way to get it. If the problem needs a more immediate solution, the user has the best alternative payday loan.
For education funding, the alternative is only interesting when the course is technical. That is: faster and cheaper. Through credit, the credited will have value in hand to dismiss the classes, and could soon enter the labor market in the area studied, thus managing to pay off the debt. For higher education, however, it is more attractive to use self-financing programs, such as Fies.
Lastly, taking out an old debt can be great use of credit. After all, the first debt may have high interest rates, and the delay in installments is making the “snowball” grow. With the grant credit, then, the individual will be able to extinguish the debt-problem, reorganize the finances and then pay less costly installments.
If the objective is to obtain a good of great value, it may be more advantageous to adhere to specific financing for the property. This is because the interest rate is usually quite different.
Thinking of car financing, for example, you can find interest rates at 1.7% per month. Meanwhile, the transfer of securities, which could be used for the purchase of the car, has a minimum rate of 3.66%.
How to make a decision?
In other cases, supply will hardly be a good solution. Interest and fees will leave the debt more expensive, and perhaps the previous problem will become even greater to the consumer.
In any case, it is critical, before the decision, to check if there are other solutions for the bad financial moment. How about reprogramming the budget? Have you thought about doing any extra work, formal or informal? Is it possible to sell some good to improve finances?
The ideal is to put everything on the tip of the pencil. List your monthly income and your common expenses in detail: consumption at home, with leisure, food and others. Also define the budget deficit, its origin and how much it has grown over the months. Using a financial manager can help.
Before you apply for credit, know your finances well. For this, it is a good tactic to write down all the monthly expenses and revenues, whether in a book, financial manager or spreadsheet.
Be sure still that if you choose the credit, your monthly income will allow the settlement of the installments provided by the bank.
Only with all the information, and knowing that there is no other way out, opt for the assignment. So you will be sure that the timing is right.
Types of payday loan
Deciding on the personal payday loan, the consumer can count on several options in the market. One of the most common is the payroll payday loan. The modality works by means of the discount of the benefits directly from the consumer’s payroll.
This feature gives the financial institution security in the settlement of the installments. Thus, it is common for the terms and interest rates of the alternative to be more attractive.
Not everyone, however, can adhere to the payroll. After all, the interested consumer needs to have a payroll. Thus, retirees and pensioners of INSS, as well as civil servants, have the possibility. Workers with a formal contract can also take advantage of the option, but only at the bank agreed with their employer.
Payroll payday loan is usually cheaper because it gives payment security to the financials, since the amounts are discounted directly from the payroll of the employee.
Ordinary personal credit, in turn, does not deduct salary amounts. For your payment, the consumer must make a commitment to pay the monthly bills of a bank bill every month.
In this type of credit, the consumer does not offer guarantees, so it is subject to slightly higher rates. The interested party only has to look for a financial, to wait for the approval of the request and to receive the amounts.
The overdraft is also very common in Brazil. The possibility offers pre-approved values to the consumer, which are available in your bank account. When you need it, the accountant can then use the numbers, and then only pay for the option. The charge is made through daily interest. The interest rate on the overdraft reaches 325.1%.
Citing another form of credit, there is the refinancing. Refinancing can be accomplished when the consumer has a property and car in their name. He takes possession of the assets, and requests the bank payday loan, and then receives part of the value at which the property was evaluated.
As a result of adherence to this credit, the “guardianship” of the good then goes to belong to both the consumer and the bank. The individual can continue to use the car or home normally. However, if you fail to pay the combined installments, the same individual may lose custody of the possession, with the bank only requiring it for you. That is: the consumer loses the resource.
Remember, though, that financial organization is critical, before you get the values as well as after that. Otherwise, finances will not get in the way, even with the “extra” value at hand.
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