If you’re thinking about getting on the credit card slip or your bank’s overdraft, it’s best to rethink your attitudes because you will certainly pay a high value. Both the credit card and the overdraft continue with the very expensive interest.
Today, Bom Pra Crédito will explain why credit card and overdraft are definitely not the best alternatives – both for those who need money to do something, and for those who have encountered some type of emergency. Check out!
Interest has even fallen, but it is not the best option
The interest charged on the credit card and special check roll , even achieving a significant drop from May to June, compared to June 2017, remain very high.
We are talking about values that can reach up to 300% per year. For you to understand better, the country’s interest rate – Selic -, currently, is around 6.5% per year.
Interest on the credit card, in May, was 311.9%; in June, this margin fell to 304.9%. In 2017, in the same month, the value was 322.6%. Even in decline, these interest rates still have exorbitant amounts for the consumer’s pocket.
These data were released at the end of last month, by the Central Bank. And we are only talking about average numbers, that is, they can reach a significant variation in certain situations.
This is because all banks have differentials in their interest rates, always related to the plan that has been contracted by a client, and the actual relationship that it has with the institution. In many cases, those who have more money invested in the bank will get lower interest rates.
The changes in overdraft
Beginning in August, people who spend 15% of the total overdraft limit for 30 consecutive days may have access to the lowest credit line. Achieving parceling value with lower prices.
The Brazilian Federation of Banks (FEBRABAN) announced the measure in April and also warned that each institution will be able to choose which alternative it will want to offer its clients.
Credit card and the new rules
The use of the credit card, when we speak in the newspaper, can only be used for up to 30 days. Shortly after this time, banks should submit a proposal more into account for their customers, such as the purchase of installment credit. Thus, the same can define the amount of installments you want to pay off your debt.
Even with the lowest interest rates, the credit card rotary ends up being too heavy for the worker’s budget. In times of crisis, with the cost of living each day louder, falling into the rotary trap of the credit card will not be the best outlet for your pocketbook.
In the old days, when consumers failed to pay the full amount of their bills, the debt was automatically transferred to the next month. Exactly the case of the revolving credit.
Month by month, this was happening in a successive way and with interest collection being made already on interest. Which ends up making a simple debt, a real snowball.
Changes in revolving credit and overdraft
In early June, new rules came into effect for the credit card rotary. By making banks cover equal rates in both modes of revolving credit. We remind that the Central Bank, in April, created two types of rotary: regular and non-regular.
Before that, there was only one way to finance credit card debt. That is, the invoices that can not be paid in their respective maturities.
At the same time, in order to prevent the development of exorbitant debts, the Central Bank decided to reduce the term of the rotary to only one month. Customers could reduce up to 15% of their outstanding balance and continue using the remainder.
On special check, the interest rates also continue with very high levels. With only 16 percentage points below the record high recorded in 2016, the figures reach 330.4% a year.
How not to fall into the trap of high interest credit card and overdraft?
If you finally want to realize a dream, buy something you need or even get the value you always wanted to open your own business, the tip is: never use the credit amount provided by the credit card.
And for you who came across an emergency, and did not bother to breathe in the face of some adversity, the tip is: do not use the overdraft limit for this . Getting rid of a headache, creating even greater pain, is certainly not the best option, is it?
Through the personal loan, you will have much lower interest than the ones provided by the credit card and the overdraft. By hiring online and very fast, you can have your personal loan now.
You will not need to justify why you are asking for your personal loan , and the best: you can use your money for any and all purposes. Since the discharge of your debts, or to make that trip you both want.