Payday loans are an agile and economical option for those looking for money at lower interest rates in order to settle larger debts, such as those on credit cards. As the installments of this type of loan are deducted directly from the payroll, the financial institution charges lower interest.
In addition, the ease of obtaining money to settle debts with higher interest rates, such as credit card debts, for example, or for unforeseen expenses, has turned payday loans into an ally for those with a tight budget.
Despite these advantages, it is worth checking some tips from Lite Lenders to make the most of this money and avoid falling into temptations.
Before applying for a payday loan, research the rates applied by the different institutions and, if possible, use the relationship you already have in a bank to get discounts.
Make a survey of all accounts to find out how much you can commit to monthly income, which usually revolves around a maximum of 25% of salary. Remember that the installments will be deducted from the payroll, so plan your monthly budget, preventing the periodic decrease in what you receive from becoming more tight.
Choose the bills to pay
Overdue credit card bills and overdrafts are often the highest and most difficult debts to pay, so it is worth using the paycheck to end them. Avoid using payday loans to make new purchases, as this only serves to increase indebtedness.
If you receive any extra money, such as vacation and 13th salary, take the opportunity to escape interest and the next installments by paying off the loan as soon as possible.
Payday loans can also be obtained easily by retirees and pensioners who receive INSS. Before making such a transaction, check if the institution is authorized by the INSS to make this type of transaction. The credit opening fee cannot be charged to policyholders.
As with the employee, the discount is made directly from the benefit of the insured, so care must be taken when closing a deal so as not to compromise the domestic budget.
Finally, be careful when lending your name to third parties, as in case of default, your credit will be compromised. With good planning and savings, your debts can be paid off with or without payday loans.