If you have been negative for some time, you may have heard a friend say that they should borrow to repay their debts. After all, this is a common tip we see on TV or read in the newspaper.
But is this alternative the best one for you? Will you really make a good deal for your accounts? In many circumstances, a credit can help resolve a complicated financial situation, but this is not a suitable solution for any crisis in your home budget.
If you want to know if getting a loan is a good idea to repay your obligations, this text may help you. Let’s list the 4 cases where this feature is advantageous. See below!
When loan interest is lower than debt interest
One of the major problems with being in debt is dealing with the fees that come with this debt. Depending on the tax, negative balances of $ 5,000 can turn into $ 10,000 or more in a relatively short range.
Therefore, you should always compare the interest rates of your current debt with those of possible loans to see which scenario is the most advantageous. Confused? Let’s explain further with an example.
Imagine you have a debt of $ 48,000 with a monthly rate of 6% and another $ 12,000 with rate of 12% per month. In one year, your charge will grow from $ 60,000 to $ 143,337.08 because of compound interest.
Explaining: In 12 months, the first debt would rise to $ 96,585.37, while the second would go to $ 46,751.71.
In return, a Real Estate Secured Loan of R $ 60,000 could be repaid in 36 installments of R $ 2,196.45 (depending on the IPCA variation), as shown by our simulator. That is: In this example, you could pay something around $ 79,072.20 (45% less!) To clear your name, and within 3 times longer.
In this case, it is worth taking a loan to pay off the debts, as you would spend less and have a longer time to repay the debt.
When you need to get away from credit card revolving
Until 2017, it was possible to postpone credit card debt with your revolving, always paying the minimum of 15% on each invoice and thus automatically finance the amount.
So it was much more advantageous to take out a loan to pay off the amount at once than to use this debt-inflating snowball strategy.
Now, with the new revolving rules stipulated by the Best Bank, it has become difficult to increase the value of the negative balance, but it is even more advantageous to repay the debt with a loan.
Under current regulations, the customer can only pay a minimum of 15% of the credit card bill for 1 month. If in the following account it is not possible to settle the debt, the card issuing bank must propose a financing line for the debt to be settled.
In a way, this is good for the customer: instead of the huge interest charged each month over 85% of the amount owed, you can now finance the debt as early as the second month, before it grows a lot.
However, the average interest rates offered by banks for these loans are still high. Some reach 9.99% per month (213.5% per year!). Therefore, it is more advantageous to take out a loan with lower rates and repay the debt easily.
When you want to clear your marketing name
Imagine that there is an excellent opportunity to buy your own home, change cars or take a trip. However, because of debt, you may not be able to take this chance.
When it is negative in SPC or Serasa, it may take some time to unsubscribe. Between negotiation with the lender, the establishment of a new agreement and the payment of the first installment may take a few weeks.
When you need to clear the name, it is more advantageous to get a loan. This is because such an operation does not appear as debt, meaning you can pay off the negative amount, clear your name and pay off the credit installments normally.
Although it is difficult to get a loan with restrictions on name, it is not impossible, especially in modalities such as payroll or secured property. Because there are precautions in these two categories, it is easier for financial institutions to accept the deal, even when the customer is negative.
With this strategy, you can clear your name in no time and seize the opportunities that come your way. The duration of the process can be calculated by adding the loan release deadline plus 5 business days to remove your social security number from the database.
When you earn any unpaid bonus
Serasa annually hosts the Feirão Limpa Nome, a special event where creditors and debtors can sit down and negotiate discounts to settle existing debts in the country. On this occasion, the debt may be reduced by up to 90%, depending on the case.
In addition to this trade fair, there are still other occasions when it is possible to negotiate the rebate of the negative balance, often in direct conversations with the lender.
A normal condition of these contracts is that the amount be paid at one time, without installments. It is the deal: the lender prefers to lower the debt to ensure that you will receive something at that time.
At such times, a loan can be very advantageous to take advantage of the discount and clear your name, greatly reducing the amount due and repaying the installments later.
As you can see, there are some conditions that are worth borrowing to pay off debts, such as when interest is lower or your name needs to be removed from the SPC. This feature is also interesting to get away from the revolving credit card and get discounts by paying off all the debt at once.
If you are in one of these situations, contact us to find out what solutions we have to offer to pay off your debts!