Personal credit, like any type of loan, is touted as one of the major villains of the family budget. Of course, the ideal is to have an emergency financial reserve and never have to resort to these resources to cover funding gaps. However, there are specific situations where this option is really worth doing. Check it out now when you should resort to personal credit:
To pay off more expensive debts
Personal credit is an alternative that should be taken into consideration when the consumer urgently needs to pay off a more expensive debt, ie it covers higher interest, such as overdraft and credit card. credit For example, it is very common for people, seeing the bill in red, to pay only a minimum of the card bill. The result: A few months later, debt may even triple.
If in the negotiation the card administrator agrees to charge interest less than 10% it may be a good idea to resort to personal credit. A credit card debt up to one year in arrears can be written off by up to 30% if the consumer uses a renegotiation. In this case, it may be advantageous to take out a personal loan to repay the cash and then pay off the loan installments, which will be lower in 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 hire. Virtually anyone can apply for it at financials, banks, department stores and even supermarkets. Personal credit may be a good option especially for those who are owed on the market and, as it has no clear name, cannot resort to cheaper credit alternatives, such as a loan. payroll loan, for example. The so-called negative credit has no CPF consultation, on the other hand, has higher interest rates, so only if you really need it.
To pay an emergency expense
It is very common for unpredictable and high expenses to arise that the money in the bank account is not enough to pay. The ease of hiring is attractive to those who are running against the clock: the online credit offered by the bank itself, for example, can be contracted and at the same time the amount goes into the checking account. Personal credit can even top up the amount available on overdraft in urgent cases, such as having to pay a hospital bill or a fine.
As ideal as it is not to borrow, personal credit can be an outlet for difficult times. It’s worthwhile to resort to the option to pay off your overdraft and credit card debts, however, before resorting to one of the personal credit options, research to opt out. the one that, in addition to practicality, offers the best rates. And always remember to plan and create a financial reserve!