Modality created to be a facility for having lower interest rates can be a trap if the consumer accumulates too many installments. Payroll deductible credit is the cheapest option among the available financial products, but care must be taken not to turn a facility into a problem. Even though it is a transaction with lower rates, planning is essential before taking out the loan.
Taking loans and more loans, we know that this is the reality of civil servants in all spheres, including CLTs, Commissioners and even temporary workers, indebtedness has occurred due to flat wages and earnings year after year, without inflationary replacement, as a way out . emergency “help” always seems to come from the payroll loan. It is money in your pocket at a “cheap” cost, but the issue involves a well thought out analysis between the quality of wages x exposure and the ease of obtaining credit.
Before assuming this type of debt, it is important to assess the risks, the impact of the installments on the monthly budget and the best offers on the market.
The retiree can commit up to 30% of the benefit amount with common payroll loan installments, and 5% with the minimum installment of the payroll credit card. But the ideal is not to use the entire percentage of the so-called consignable margin.
It is advisable not to spend more than 20% of the salary or benefit on the payment of debts.
When is payroll loans recommended?
Payroll loans can be a good option for those who are wrapped up in their credit card or overdraft, as these types of credit have more than 300% interest per year and can lead to debt snowballing. But there is no point in taking out the loan, paying off the debt and two months later getting hung up on the overdraft limit or the revolving credit card. At that point, it will be necessary to reorganize the budget and cut unnecessary expenses.
If you are going to start a business or plan to do a little makeover at home. In these situations, the payroll can be a great alternative, as it allows you to finance the materials over a longer period.
Or also if the installment fits in your pocket, not compromising the payment of other bills you already have.
Payroll loans without becoming indebted
To hire a payroll loan without getting into debt is practically impossible, but you can minimize money problems by using only part of your salary to pay the loan, never commit more than 30/35% of your earnings on financial debts. This means that there is no point in using 30% of the discount on the pay stub and being hung up on your bank’s credit limit or overdraft.
If a family member or friend asks to take out the loan on your behalf, do not accept it. That person may wind up and you are going to pay the debt.
So, before making the loan, think, reflect and analyze if there is no other way to get the necessary money. Be careful, make a comparison and plan, these are essential tips to use the resources of salaries or earnings well. Also read the article: How to make a Payroll Loan?