In times of crisis, the population has found it increasingly difficult to maintain financial balance. The rising increase in inflation and interest rates causes a sharp increase in expenses, compromising family budgets. In this scenario, the payday loan, popularized by its low interest rates, appears as an alternative for a relief in the accounts or even to restructure the finances.
The payroll, however, still raises many questions regarding its characteristics. In this post, we will solve the biggest doubts about the payday loan modality. Check-out:
What is the payday loan and why are its rates lower?
The payday loan is a type of loan in which the installment amount is directly debited from the payroll. As a result, financial institutions, which set their rates based on the risks of transactions, find a higher level of security, since the debtor cannot “evade” payment. Consequently, interest rates are usually lower than for other types of loans.
Who can hire a payday?
The payday loan is not available to everyone. The modality can be hired by public servants – in all spheres, military and retirees or INSS pensioners, being forbidden to holders of other social security benefits. In the private sector, workers with a formal contract with companies with more than 300 employees can take out the loan, but the interest will not be as low as in other cases.
What is the maximum amount of a payday loan?
The analysis of the maximum amount of the payroll takes into account the consignable margin, which, as a rule, corresponds to 30% of the contractor’s monthly income. The percentage, stipulated by federal law, aims to preserve enough to cover day-to-day expenses and possible contingencies. There is the possibility of contracting more than one payroll, provided that the sum of the installments does not exceed the margin.
I used all the margin and I need a new loan, what to do?
When a person chooses to take out a loan, or any other type of credit, the ideal is to readjust the budget in order to be able to pay the installments without compromising finances. Still, there are circumstances when the situation may get out of hand and a new loan is needed.
In this case, before taking out a personal loan, with higher interest rates, or using the revolving credit card or overdraft, evaluate the possibility of renewing the payroll without increasing the installment. Depending on the amount of remaining plots, it is possible to get a good amount of change.
Another alternative is to port the credit to a financial institution that offers a lower interest rate. In fact, although rates vary from bank to bank, for INSS retirees and pensioners there is a ceiling, currently of 2.34% per month, set by Social Security, and the collection of interest rates above the percentage is prohibited.
It is important to research well before making a payday loan, always looking for the best conditions and taking into account the impact of the installments on your budget. With the information presented, you can more safely evaluate the options available on the market.