Many people don’t know that the interest rates on cards and overdrafts are usually much higher than on loans. Below, see how to keep your bills up to date using a personal loan.
Plan Payment
Before getting into debt, keep in mind how to get out of it. A loan cannot become a debt that you cannot meet. It is important to emphasize that the number of installments paid monthly does not exceed 15% of your monthly income. Be cautious about accepting soft installment offers, as they are often many. You must always consider 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, such as fine and permanence commission, in case of delay in payment of installments. Also, check if other considerable costs will arise, such as a child’s college or the purchase of a property, for example.
Read The Contract
Unfortunately, most people are not in the habit of reading loan agreements. However, reading the document is essential (and mandatory) so that there are no surprises along the way, such as maintenance fees, price adjustments, the possibility of cancellation only upon payment of fines, among other things.
Collect The Necessary Documents
In general, finance companies request the following documents to make the loan: CPF, RG, proof of address, and income. These documents can vary according to the requests of each institution, but they are all relatively easy to obtain. Financial institutions that offer credit online tend to be less bureaucratic and faster in releasing the money.
Analyze If Borrowing Is The Best Option
Is taking out a loan essential, or can it get the desired amount by saving for a while? If the answer is yes, it is advisable to raise the necessary money and not take the loan, avoiding paying interest unnecessarily.
Watch Out For Scams
It is essential to always look for emails and calls from supposed financial institutions offering easy credit. Unfortunately, this type of situation is common, and if you provide your personal information, you could be the victim of a scam. Never enter your data via email or phone. Financial institutions do not carry out this type of procedure (to offer a loan) without requesting it. Check direct lenders in California
