Modality designed to be a facility for lower interest rates can be a trap if the consumer accumulates too many benefits. Payroll deductible payroll loans are the cheapest option among the available financial products, but care must be taken not to turn a facility into a problem. Even though it is an operation with lower rates, planning is essential before borrowing.
Taking loans and more loans , we know that this is the reality of civil servants in all spheres, including CLTs, Commissioners and even temporary ones, the indebtedness has been due to salaries and flat earnings year after year, without inflationary replacement, as output from In an emergency the “bailout” always seems to come from the payroll loan. It’s pocket money for a “cheap” cost, but the issue involves a thoughtful analysis of the quality of wages x exposure to ease of credit.
Before assuming this type of debt, it is important to assess the risks, the impact of the installments on the monthly budget and the best deals on the market.
The retired person may commit up to 30% of the benefit amount with common payroll benefits, and 5% with the minimum portion of the payroll deductible credit card. But the ideal is not to use the entire percentage of the so-called payroll margin.
We recommend that you do not spend more than 20% of your salary or benefit on paying debts.
When is payroll deductible credit recommended?
Payroll loans can be a good option for those who are wrapped in credit card or overdraft, as these modalities have more than 300% interest per year and can lead to the snowball of debt. But it is no use getting the loan, repaying the debt and two months later to get back on the limit of overdraft or revolving credit card. At this point, it will be necessary to reorganize the budget and cut unnecessary spending.
Whether you are going to start a business or plan to make a small home makeover. In these situations, payroll loans can be a great alternative because they allow you to finance materials over a longer period.
Or also if the installment fits in your pocket, not compromising the payment of other bills you already have.
Payroll-deductible loans without debt
To borrow a payroll loan without getting in debt is practically impossible, but you can minimize your money problems by using only part of your paycheck to repay the loan, never committing more than 30/35% of your financial debt earnings. This means that it is no use using 30% off the pay stub and hanging on your bank’s credit limit or overdraft.
If a family member or friend asks to borrow on your behalf, do not accept. This person may end up getting tangled up and you are going to pay the debt.
Therefore, before making the loan think, reflect and analyze if there is no other way to get the required money. Be cautious, compare and plan, these are essential tips for making good use of salary or earnings resources. Also read the article: How to Make a Payroll Loan?