Has your monthly income been affected by any financial unforeseen events and has this exceeded the overdraft limit? Yes, the one with interest of over 350% per year!
Or had to use the credit card limit? With the highest interest rate in the market, which rises to 445% per year? Now you’re thinking of taking out a loan to pay off the bank, correct?
Choosing the best Total Cost Effective for your pocket may not be an easy task, but it is not impossible. Pondico has selected tips to help you with debt transfer:
Debt transfer loan
When a loan is made to repay a debt with another institution it is called debt transfer . As well? Simple! In today’s market, interest rates charged by other lines of credit reach interest rates never seen before. In most cases, the personal loan has a much lower Total Effective Cost (CET). Those who choose this line can pay off the financial commitment with the highest interest rate. So you get a new debt with interest and lower installments.
Planning is your main ally!
Therefore, before acquiring personal credit, research as often as you find necessary. As we do not tire of saying, always look for the Total Effective Cost of the operation and not just the interest rate. Did you find corporate interest rates too high? With the advancement of the internet in recent years, there is the possibility of getting personal loan without leaving home, you know? Companies, such as Pondico, offer a lower line of credit than banks charge. How is this possible? They have no physical operation and this advantage is passed on to the customer in the fees.
How to use the loan to rearrange the accounts?
Planning is essential to know how much you need to reorganize outstanding bank accounts and also to analyze and organize debts, if more than one, in order of magnitude. For example, always prioritize the debt with the highest CET and so on. This way you will be able to optimize your monthly budget by settling the largest debt first and keeping the debt lower (in this case the loan).