In order to make a complete personal financial control, we need to always be alert to the excessive consumption and the compromise of the income with financing. But sometimes, debts get out of control or an emergency expense arises And, when you realize are you kind of rolled up and thinking about taking out a loan. When that happens, one of the first things we think about is: I’m going to take out a loan to end these debts. But be what that the best solution The answer: It depends! In many situations it can be a viable alternative, after all, you may be able to reorganize your financial situation and concentrate your debts. But I need to study the possibilities very carefully.To help you better understand this, we have prepared this post that will show you when to take out a loan the best alternative to pay off a debt
Understand life the first step
First of all, it is necessary to understand the situation of debts that you intend to settle with the loan. This means calculating the total amount, including interest rates and other possible charges. For example, are you it has a debt of $ 1,000 on the credit card (the famous revolving card). Based on some rates and charges practiced by the market, 10% of revolving interest ($ 100) + 2% (per month) of late penalty ($ 20) + 1% (to the total amount) per month) of default interest ($ 10) . So, your debt actually, after the delay, of $ 1,000 + $ 130 = $ 1,130. And it increases with each month you go. you do not pay the full invoice. Do these calculations The first step is to understand the real value of what you do. are you owing.
Search for forms of loans
The second step search if you can you make a loan and what are the best conditions available for your profile. Important: always search for lines with low interest rates, like the one offered by Just. For that, You should go to different financial institutions like banks and financiers to understand what types of loans you have. it fits. Typically, the most common are personal credit (sometimes even negative people can do it) and payroll loans (done through the company And Discounted On payroll). Personal credit simpler to get, but usually has higher interest rates. So, do real simulations to understand how much you are. You are to pay. For example, if you take $ 1,000 in personal credit – at an interest rate of 4.5% per month, the final amount will be from $ 1,315.99. The payroll “has much lower rates”, however, it makes the payroll discount. So your salary gets smaller every month. The important go to various institutions and research the best conditions,
With that information in your hands, power compare debt and loan values and see if it’s worth it. For example, if your debt on the card has rates of around 15% per month payroll is 2.5%, it is worth making the loan, as you pay less than the credit card charges and in installments compatible with your monthly budget. When possible, initiate emergency savings. It will be a third option to settle debts, where depending on the type of investment, the analysis will consider whether the interest on the credit will be higher than the interest on your investment. to be worth the ransom. It is important to remember that the interest rates on overdraft and credit card are the highest in the market. So if these are the villains in your history, it might be worth taking out a loan to get this debt over with.