Anyone who is accustomed to paying interest on credit card or overdraft needs to rethink their choices because it is paying dearly. It is that both the credit card and the special check have the highest interest in the market.
Next, Credit Lender clarifies why credit cards and overdrafts are not the best alternatives, how to get rid of debts and the best option for those who are in need of money.
Credit Card: Why Not The Best Alternative?
Interest on the revolving credit continues to rise in 2018. According to the Central Bank, with the increase, for the third consecutive month, the average interest rate reached 243.3% per year in February.
The revolving credit works as an outstanding debt financing, ie it is as if the bank or card manager lent you more money. And of course, this emergency loan comes out too expensive for the client.
In an attempt to reduce consumer delinquency rates since April 2017, new credit card rules have come into force .
In summary, when the customer makes the minimum payment or the amount between minimum or total, the bank is obliged to offer, in the invoice of the following month, an option to install the credit card debt. In installments, interest is also charged – and they are expensive!
Paying minimum or installment credit cards are expensive alternatives for anyone who is facing financial problems. If you have paid the minimum, see how to get rid of debt from the revolving credit .
Now, if you have not yet paid the bill and are in doubt about which option to choose, know that a personal loan can help you not only pay off your credit card debt also balance your budget. Compare credit card interest and personal loan !
Special check: why not the best alternative?
Those who use the overdraft often see the bank’s money as being complementary to the income, which is far from true.
The Central Bank disclosed the average rate of the overdraft in February 2018: 324.1% per annum. The Brazilian Federation of Banks announced in March that it is studying possible overdraft changes in 2018, in order to reduce the cost of high interest rates charged to account holders. However, no changes have been made so far.
It is important to say that the overdraft is an optional service offered to the account holder, that is, it can be canceled.
If you are using overdraft and do not know how to get rid of debt, read our tips on how to get out of the overdraft .
Try to get rid of debt overdraft as soon as possible, not to continue paying interest and losing money.
Beware: when checking the bank statement, the total balance may appear as follows: available balance in your account + limit of the overdraft.
Whenever you check your current account balance, consider only the available balance in your checking account, excluding the overdraft limit.
If you are in need of money, prefer a cheaper credit line than the overdraft, such as personal loan .
You can also avail the money to pay off the bank debt, if any, and thus get a positive balance in your bank account.
Stop Paying High Interest: Know the Advantages of Personal Loan
- Modality of credit with interest less than the credit card and overdraft;
- Fast and online hiring: ask for your personal loan now !
- You do not need to justify the reason for your personal loan application : you can use the money for any purpose, such as repaying debts or traveling .
- Choose the ideal due date, according to your personal budget;
- Installment in the right measure: you choose the amount of ideal parcels and value, which do not weigh in your pocket;
- Possibility of discounts on the anticipation of installments of your personal loan.
Enough to pay abusive interest! Increase your chances of finding a cheaper loan here at Credit Lender: With just a single registration, your profile is evaluated by our partners and you have more chances to find the perfect personal loan for your profile, the one that most meets to their needs.