Getting a little extra cash at a time of tightening can be a real hand in the wheel in financial life. One hour the car breaks, the house reform does not walk, unexpected medical expenses arise, the child’s school tuition is delayed or credit card debt does not stop growing. At these times, ads like “Personal Loan Now!”, “Easy Money and No Bureaucracy!” Appear as quick and simple options to get out of the way.
But, as your grandmother would say, not everything that glitters is gold, and in the financial arena, a false step can cause a lot of headaches. Therefore, we have prepared 5 important tips for you not to get involved in a personal loan.
The objective of the loan
It is not always possible to acquire assets and pay cash accounts. In such cases, evaluate the purpose of the loan and seek to use it to pay off expensive debts, such as a credit card and special check, or unforeseen as a health problem in the family. Using it to buy a car, pay for travel or have more money for unplanned expenses can put you in an even more complicated financial situation.
Before making a loan, plan the payment
Use caution when accepting soft proposals because they are usually many! Before you get into a debt, keep in mind how you will get out of it. Make sure other major costs will arise, such as the college of a child or the purchase of a property, for example. Do not forget that unforeseen events can also occur, so avoid accumulating debts and prioritize cash purchases so you do not compromise your budget for a period of time to lose sight of.
Beware of loan scams
Knowing that there are a lot of people wanting to get out of the way, scammers have gained space in the middle of financial loans. Suspect calls and emails offering credit when you did not request and never pass your personal data through these channels. And if they ask you for an advance to release the money, also be suspicious. Credible institutions rarely ask for some registration fee, guarantor or processing to release the loan amount. In addition to these precautions, always research the history of companies that offer credit, check for complaints and complaints on the internet. Visit the site and ask all your questions.
Be within the rates charged
The interest rate on a personal loan represents the cost of using the money that will be provided. That is, interest is the amount you will pay the most for the cash advance you need. So, nothing more natural than seeking the lowest interest rate among financial institutions, right? Yes, but do not rely on that alone. In addition to this rate, other amounts can be applied and there are differences between monthly or annual payments. Ask them to tell you the Total Effective Cost (CET), which includes all costs related to the loan, such as interest and taxes. Also pay attention to the contract and the charges as a fine and stay commission, in case of late payment of the installments.
Pay attention to the payday loan
The payday loan is nothing more than a debt that will be deducted every month directly from your salary – without bills, tickets or bills. Therefore, before hiring him, consider this loan as a part of your salary that will not exist for a certain period. Among the credit modalities, paycheck may have lower rates in the market, but investigate if the company in which you work has an agreement with some institution. By law, you can commit a maximum of 30% of your income, so be careful if you are offered higher percentages!
Every loan must be done consciously and always, in the future! If you are clear about each of the things we have mentioned, you will have no problem acquiring, managing and taking out credit. Remember that it is always a help, so do not let it become a problem.