Debts, payday loans and ways to get rid of the problem
The value is high, it just grows and I’m not able to pay. I work as a company employee and a friend gave me the idea of taking out a payday loan and using it to repay the debt. I don’t know any of these things and she couldn’t explain it to me either. Is it a good deal? “
Interest charged for late payment of credit cards in Brazil is among the highest in the world. Thus, every effort needs to be made to stop this debt as soon as possible. We will work on some points together in this text.
Payroll deductible credit
Being quite objective, yes, using a payday loan is a good alternative to carry out a debt exchange. This is always an interesting operation with the aim of improving the indebtedness scenario, although it does not always solve the problem completely.
payday loan interest (we will consider a rate of 3% per month, although there are cheaper options) is much lower than interest on credit card (around 15% per month). This difference is mainly due to the fact that payroll deductible loans involve a direct discount on the employee’s payroll, greatly reducing the chances of default (default).
When planning for the payday loan, do not forget that the installments cannot exceed 35% of the salary.
Negotiating debt with the card operator
Another important thing is to seek a negotiation with the credit card operator so that there is a discount on the payment of the debt. For companies in general, it is better to offer a discount (and receive some payment) than not to receive anything (risk of default).
Do the math to see if the money from the payday loan will be enough to pay off your credit card debt all at once. If this is not the case, look for other ways to get the missing money (personal loans also have lower interest rates than those on the card), but paying attention to the budget to respect your limits.
Have you ever considered selling some goods?
Another thing that can help to solve the problem is to sell some goods that you own. From a bicycle to a car, there can be many things in your home that you don’t use so much that can be sold to ease your budget.
It is necessary to understand that a debt is an open tap that does not stop flowing. This needs to be contained, and it is not the time to have attachments. Sell now! Then, when the financial situation is stabilized, you will be able to buy again what was sold (but please add money and buy in cash this time).
Responsibility when taking credit
The credit was made to improve people’s lives, not to get them into trouble. Imagine you have a gift for sales, but you don’t have the money to buy the products you want to sell. Then you take a loan to buy these products, and by selling them you repay the loan and get some profit.
It is risk capital, but that risk needs to be well calculated. For that you will need to have a profit margin greater than the interest on the loan to be able to close your accounts in the blue. Note that the concept of lending as a factor in generating income works well for companies, so be careful if you are going to use credit only for consumption – this is dangerous!
Credit lines must always be used to leverage new financial resources and never to satisfy the desire to buy a product in advance without all financial impacts having been properly calculated and studied. Learn to use credit responsibly and you will never have to “fight” with it.