Getting a lower-interest personal loan to pay off all installments is often more worthwhile than keeping multiple installments over the long term. Almost every day we see news about the level of indebtedness of Brazilians.
The recurrence of the subject is understandable, due to the economic crisis that still impacts our daily lives. To give you an idea, a survey by Serasa Experian estimates that 40.4% of Brazilians are overdue or overdue.
Which directly influences their financial life.
And the biggest villain everyone knows well is. Another study by the National Trade Confederation shows that credit card debt continues to top the debt list, with 78.8%. Next up are booklets, with 15.8%, and car financing, with 10.5%. If you are paying very high interest rates, maybe this is the time to consolidate your debts.
Exchanging the installment of expensive debt for cheaper
Ideally, you should have up to 30% of your income committed to paying installments for personal loans, financing, or other debt arrangements. Therefore, care must be taken not to curl up.
As we said, keep an eye on credit card billing installments. In addition to the fees being very high, when you use the card it is easy to lose track of expenses as that amount is not often debited from your bank account.
But if you have come this far, it is because your personal budget has gone off track and you need to rearrange it. For this, it is important to negotiate debts with the highest interest rates and the highest FET.
Understanding Total Effective Cost (FET)
The FET is the rate a financial institution charges to make a personal loan . It corresponds to the total value of the negotiation, which is obtained from the sum of interest, fees, charges, taxes and insurance.
The time has come to renegotiate debts
To get started, what you need to do is review all your current accounts. Find out everything you have to pay, including debt installments from different sources. Once you understand what you need to pay in the month, check out the interest rates and FET. Thus you will arrive at the full amount of your debt.
This is the time to get the calculator
Is it worthwhile to take out another low-interest loan, pay off all debts, and be on one installment? The answer is almost always yes. At this point, the important thing is to think of a installment that fits in your pocket without compromising your entire income because you have other accounts.
It is essential to look for a solution that does not compromise your personal budget and solve your financial life once and for all. Therefore, check the types of loans available in the market and choose the one that best fits your financial planning.