Personal credit, like any type of loan, is singled out as one of the big villains in the family budget. Of course, the ideal is to have an emergency financial reserve and never need to resort to these resources to cover bad debts in your finances. However, there are specific situations where it really pays to make this choice. Check out now when you should turn to personal credit:
To take out more expensive debts
Personal credit is an alternative that should be taken into consideration when the consumer urgently needs to pay off more expensive debt, ie higher interest rates such as overdrafts and credit cards. For example, it is very common for people, seeing the bill in the red, to pay the minimum of the card’s bill. The result: a few months later the debt can even triple.
If in the negotiation the card administrator does not accept to charge interest of less than 10% it may be a good idea to resort to personal credit. A credit card debt up to a year late can be reduced by up to 30% should the consumer resort to renegotiation. In this case, it may be advantageous to take a personal loan to pay the cash value and then pay installments of the loan, which will have a lower value.
When you have the dirty name on the square
One of the great advantages of personal credit is that it is relatively easy to get hired. Virtually anyone can apply for it in financial institutions, banks, department stores and even supermarkets. Personal credit can be a good option especially for those who are owing on the market, as it does not have the clean name, it can not resort to cheaper credit alternatives such as payroll loan, for example. The so-called negative credit does not have a CPF query, on the other hand, it has higher interest rates, just hire if you really need it.
To pay for an emergency
It is very common to have unpredictable and high-value expenses that the money in the bank account is not enough to pay. The ease of hiring is an asset to those who are running against the clock: online credit offered by the bank itself, for example, can be hired and at the same time the amount goes into the checking account. Personal credit may even make up the amount available on the overdraft in cases of urgency, such as having to pay a hospital bill or a fine.
No matter how ideal it is not to resort to loans, personal credit can be a way out of difficult times. It is worthwhile to use the option to pay debts with the overdraft and credit card, however, before resorting to one of the personal credit options, research to opt for the one that, in addition to practicality, offers the best rates. And always remember to plan and create a financial reserve!