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Borrowing money is not always synonymous with budget out-of-control. In some situations, the loan helps to organize accounts and even save money. Here’s your case:
Changing high interest rates for a cheaper rate is a good way to get the finances in order and to save money. It is better to take out a personal loan and clear debts on the special or revolving credit card check than to see the debt multiply in a short time.
But the benefit of swapping expensive debt for cheap can disappear if you do not take care. There are two ways to make this exchange:
Take borrowing worth of expensive debts and take them off. In place of an expensive line of credit, you will pay lower interest. It is also more practical because you will fail to pay simultaneous debts and move on to make only one monthly payment. Understand more about debt consolidation.
Acquire the loan in the value of expensive debts, but do not pay what is in arrears and incorporate the money into income. The more likely you are to spend all the money and stay in debt.
Picking up a personal credit is more advantageous than splitting the bill on the card if you compare the rates – even after changing the rules of the rotary, which forces the consumer to pay the bill after 30 days of the minimum payment. This rule is beneficial because it migrates the consumer from the rotary to the installment of the card, reducing the interest rate of the house from 500% per year to something around 150% per year. Even so, it is still much more expensive to fail to pay off the total credit card bill and be required to install.
Unplanned expenses that can not be postponed, such as some medical emergency in the family, may appear and tighten the budget. First, it’s important to understand if you have any other expenses that you can cut to handle the emergency. Also assess whether to dispose of some asset, even a vehicle, before borrowing money.
If it is not possible, the way out is to get money to pay. In these cases, it is hard to choose objectively and you may end up hiring a credit option that is not the best for your case. The tip is to avoid falling into pre-approved lines with high interest rates, such as overdraft or credit card, and seek a personal loan.
DISCOVER YOUR RATE
The hiring process is very simple: in 5 minutes you hire the loan that best fits your financial profile. But do not forget: It is important that your loan does not commit more than 20% of your monthly income!