One of the first questions that those looking for credit should ask is: do I really need a loan? Learn how to assess the need for a Payday Loan, to get out of the red and get the best proposals for your pocket (when this is the case).
How to know when to apply for a loan?
Did the accounts get tight? Have you arrived or are close to reaching the bank account limit? Have you had an emergency and spent all your savings?
These are some common situations that can cause a person to apply for a Payday Loan. But, know that a loan is not always the best solution.
If these cases are repeated frequently, you need to be aware. You can be in the red in no time, and a loan will only hurt you further.
Now understand what to do, before hiring credit to settle your debts.
1. Try to renegotiate your debts
One of the recommendations of the financial experts is to always seek the lender first. That is, that company or financial institution with whom you owe the debt.
It is often possible to negotiate directly with the lender. Agreements may include easy payments or discounts for early (and cash) settlement.
If the installments of the agreement or the settlement amount fit your budget, then the loan is no longer needed.
2. Search for other alternatives
As much as getting credit is a practical solution (it can even be hired online), before closing any deal, really evaluate the need to make a loan.
Among the alternatives, in addition to renegotiation with the creditor itself, may be: loan with third parties (nearest network), redeem credits among others.
If the debt is of low value, it is sometimes possible to pay it off in another way. Use a loan when the debts are higher or when you need a larger amount of money.
But how do I know which loan option is best for me?
Find out the loan type indicated for each case.
How do you know which is the best Payday Loan option?
When confirming the need for a loan, the second step is to consult the most recommended option. See that here we speak of recommended and no longer accessible.
At this point, you need to be aware, because credits that are pre-approved, that is, that do not require analysis for release, are the ones with the most expensive interest rates in the market.
Therefore, for each case a careful evaluation is worth. Remember that there is no point in making new debts, needlessly.
First because when you need it, the credit may not be released again or the limit available will be lower.
And second, because the use of conscious credit can prevent default. That is, if planned, a loan can be an important ally.
See some of the most common cases and modalities available. Know when to use each type of credit, to avoid getting into debt.
For installment purchases, the first option usually used is the credit card. However, it is worthwhile to also consult the option of own credit that has lower interest rates.
Many stores already have a specific credit line and offer special and exclusive conditions for their customers.
If you opt for overdraft, pay the debit first. In practice, this means that you can use the additional balance in your bank account, but try to return it before reaching your limit.
Some banks offer the option to install the overdraft payment when the limit is reached. However, interest rates are often not worth it.
Not to mention that with the negative account the debt accumulates. The risk here is not to neglect, so that a small debt does not become a “snowball”.
Loans or Financing
Personal credit lines, that is, those aimed at individuals, are increasingly diverse. Among the options are:
- Direct Consumer Credit (CDC);
- Credit Salary;
- payroll loan;
- secured loan;
- leasing or leasing;
- financing (real estate or vehicle purchase);
- anticipation of the 13th salary;
- anticipation of the Income Tax Refund.
If there is a need for a loan, then it is worth looking for the most advantageous alternative. To do this, research and compare the interest rate charged and, especially, the Total Effective Cost (CET) which will tell you how much you will actually pay each month.
Also note that, unlike financing, a loan can be used for whatever you want. That is, it is not directly linked to a good. In other words, money is free to spend on its priorities.
Villain of many debts, the interest rate of the revolving credit of conventional cards, can triple the value of the original debt.
If properly managed, the credit card can help manage your financial flow. It is necessary to understand, of course, their ability to pay in order not to compromise the future budget.
Find out how to use your credit card responsibly
A good tip in this case is not to commit more than 30% of your income. This makes it easy to know how much you can spend.
Care needed before taking out a loan
In addition to the points already mentioned, another very important observation when assessing the need to take out a loan is where to hire.
Look for reputable financial institutions or their banking correspondents – who are authorized agents for this type of service.
Some credit options are also available for those who are also negative. However, check the requested conditions. Escape from moneylenders and be wary of companies that make false promises or request advance payment.