Payday loan: what are the biggest risks?
Did you know that payday loan is one of the ways to get money with the lowest interest rates on the market? It is a type of credit line available for retirees or anyone receiving any other type of benefit from the INSS, in addition to employees hired with a signed work permit.
If you plan to use this method to get rid of debt, be aware that you have to take some care when hiring it. The following are the major risks of this type of loan. Check out:
Payment without renegotiation of dates
One of the disadvantages of payday loans is the lack of flexibility when negotiating the date of payment of installments. Since this form of loan works with the direct discount on the salary or benefit, the day on which the person will pay for the money that he has acquired will be the one.
Therefore, the possibility of non-payment is void. And because of this guarantee, the banks or financial institutions that offer the payroll act with low interest rates and provide the opportunity to get a loan even with the name in the Serasa.
Difficulty with early discharge
Although the Consumer Protection Code (CDC) states that it is mandatory to reduce interest and other increases proportionately in case of early discharge, some creditors establish in the contract a clause denying the discount if the debt is previously paid. Stay tuned!
You are protected by law to have interest and financial charges written off from the final amount by paying the loan in whole or in part, but the calculation of this reduction is not simple and must be done by the person who granted the loan.
This discourages clients who have been able to raise money for their loans or have doubts about the amount of discharge. However, do not be discouraged! Request a spreadsheet with the descriptions of interest and the bank slip. Make it count!
Long-Term Commitment to Income
Taking care of the financial planning when choosing to contract any type of line of credit is fundamental. When requesting the payroll, remember that the installments will be deducted directly from your care benefit.
So, do not forget that when the money goes into your account, the amount will be less than the integral. This means that you need to organize to fit all your expenses with your new reality.
The value of the payday loan is limited
To assist in the financial control of the borrower, this modality has its value limited to 30% of the income of the retiree, pensioner or employee. The good news is that there are another 5% that can be earmarked for loans through payroll deductible credit card.
As we have seen in this post, although it involves some risks that need to be analyzed before choosing to take credit, payroll is still the best choice for anyone who really needs borrowed money. Compared to others, it is the cheapest and most secure method, and it offers the advantage of being unconcerned about saving an amount to repay the debt and the possibility of getting the loan with the negative name.