Nobody likes to lose control of the budget and need a loan to close the month’s bills. The problem is that, when this situation happens, the consumer usually uses the overdraft or fails to pay the entire credit card bill instead of seeking a cheap loan. Instead of putting an end to financial uncontrolled.
The strategy can sink the consumer more in interest and make the debt unpayable
As important as understanding the reasons for being in debt is to study the best measures – and here, the best lines of credit – to get out of this situation by running away from the lines that offer very high interest rates.
In this article, we have separated 5 tips for finding a cheap loan. Follow and learn how to get out of the red without further damaging the family’s financial situation!
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1. Avoid “automatic” loans
The overdraft and revolving credit card are among the loans with the highest interest rates on the market. According to the Cream Bank, in March, overdraft interest averaged 327.95% per year. The interest on the revolving credit card – charged when the user does not pay the full bill of the card – during the same period was 490.3% per year.
As these are more practical and automatic loans, that is, the customer does not need to contract the service, interest starts to be charged from the moment the account becomes negative or when the customer fails to settle the credit card bill. credit – many people surrender to convenience and end up paying high interest unnecessarily.
2. Calculate how much will be paid at the end of the installments
Before taking out a loan , it is very important to check the value at the end of the installments and compare it with the final value of other loans.
Small variations in interest rates can bring a substantial difference in the final value of the loan. So stay tuned! See the example:
Create your own infographics
3. Check online loan options
Online personal credit has been a good alternative to loans from large banks, usually at higher interest rates.
The sites that work with this type of personal credit have smaller administrative structures and use technology to be able to analyze the consumer profile more precisely. Thus, they offer more inviting interest. It is worth making a quote with your credit profile.
4. Opt for automatic debit payment
Choosing to pay the debit loan directly to your checking account can reduce the interest applied to the credit line offered to you.
The advantages are for both parties: while the bank is more confident of receiving and, thus, can reduce the interest rates applied, you don’t have to worry about making the monthly payment of the generated billet – just be sure to keep the installment value always in your checking account for debit.
5. Assess the possibility of secured credit
As we have already said, the more payment guarantees you offer the financial institution, the greater the chances of getting a cheap loan, that is, with reduced interest rates.
Therefore, research with banks and financial institutions the possibility of placing a property that you already have as collateral for the loan, such as a car, property or investments. Both banks and physical finance companies and those working online can offer this loan option. More than getting a cheap loan , it is essential to check the possibility of reducing spending to balance the budget, maintaining a healthy financial life.