Getting extra money in a tight time can be useful in many people’s financial lives. It is difficult to predict, for example, when the car may break down, house remodeling does not go, unexpected medical expenses arise, the child school tuition is late or due on the credit card. Debt keeps growing. At these times, ads like: “Personal loans now!”, “Easy and bureaucratic money!” Appear the quick and simple options to get out of the choke.
However, caution should be exercised when borrowing as a misstep can cause a lot of headache. The possibility of having extra money falling into your account is tempting, but it’s not worth taking a loan, for example, to buy something superfluous, like a new phone. Now, if you have expensive debts (credit card and overdraft), swapping for a cheaper one, such as personal credit, is a good option.
Knowing how to identify if you really need an extra credit is important as not to curl up later when it comes time to pay the installments. There are situations that we can only solve by turning off the tap and avoiding paying interest unnecessarily.
With that in mind, we have prepared 10 important steps for you not to curl up on a personal loan:
1) Map your spending
Evaluate your expenses and see where you can cut spending. Even if you are unable to save enough to solve your situation, you will need to over cash at the end of the month to repay the loan. See if you can not reduce the number of trips to restaurants or buy products of cheaper brands in the market, two expenses that weigh heavily in the budget of the Brazilian today. Financial control is essential in order to keep paying some installment and end up in even more debt.
2) Evaluate the objective of getting a loan
Identify why you need the money. It is essential to be clear about the real need for credit. Using it to buy a car, pay for travel, or have more money for unplanned purchases can put you in an even more complicated financial situation.
In the event of renegotiation of overdraft or credit card debt, a loan may lower interest rates to less than half. It is also acceptable to use the money for family health insurance, for example, or to undertake or make that change to your long-delayed child. But it is essential that planning be done to pay off the debt.
3) Analyze if the loan is the best out
Is getting a loan really necessary or is it possible to get the desired amount by saving for a while? If the answer is yes, it is advisable to raise the necessary money and not get the loan, avoiding paying interest unnecessarily. Help you save money: read our post 50 tips for learning how to save money.
Borrowing money from relatives and friends is a good way, but you should be aware that the money should be returned in the same way as for a financial institution.
4) Research Options Before Getting a Loan
The same tip for when you are going to buy some good: research before you go out hiring a credit. In addition to talking to your bank manager to find out what they can offer you, also researching the market, competing banks, financials and now also internet credit. Because they have leaner operations, online lending institutions are able to offer cheaper interest rates and still make the hiring process easier. OPip compared 6 credit options online, see here.
And be careful when choosing the financial institution to borrow, as there are many shell companies that take advantage of this type of scam situation. Search for references on the internet and among acquaintances before closing a contract.
5) Plan the payment
Before you get into debt, keep in mind how to get out of it. A loan cannot become a debt you cannot repay. It is important to note that the amount of your installments to be paid monthly does not exceed 15% of your monthly income. Be cautious when accepting proposals for soft installments, as they are usually many! Always the Total Effective Cost (CET), which includes all costs related to the loan, such as interest and taxes. late payment of installments.
Also check to see if other big costs will come up, such as a child college or buying a property, for example. Keep in mind that unforeseen events can also occur, so avoid accumulating debt and prioritize sight purchases as not to compromise your budget for a period out of sight.
6) Read the contract
Unfortunately, most people do not have 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, readjustments, possibility of cancellation only by paying fines, among other things.
7) Pick up the required documents
In general, the financial companies request the following documents to carry out the loan: CPF, RG, proof of address and proof of income. These documents may vary according to the requests of each institution, but all are relatively easy to obtain. Financial institutions offering online credit are often less bureaucratic and faster in the process of releasing money.
8) Deliver your documents and wait
After choosing the financial or bank that offers the best credit solution for your need, just hand over all the requested documents and wait. But beware: Delivering the documents and not having restrictions on the CPF does not guarantee that the loan will be released.
Each company has its approval policy, which may include payment histories, available income, economic profile, and other loans. Therefore, do not be debited by relying on the loan money before having a return from the financial institution.