Short-term debt. How to deal with delays?
“Sometimes you look for a loan, in another, you want to see get rid of short-term loan debt, then how to handle late payments.”
Short-term personal loan is designed to allow an economically active person to borrow money with interest increase for up to a maximum of 12 months, at most up to 24 months. The idea is to offer limited amounts by in also lower repayment time.
These types of loans are intended for people with “restricted”, “dirty name” and “CPF negative” in the protection agencies (Serasa, SPC and SCPC), and because they have bad credit history, they would have difficulties obtaining a personal loan Bank officer.
This means that the interest rate is usually much higher than under more favorable conditions for the borrower. On the Internet you find the short term loan with some different names, they are:
- Unsecured loan
- Loan with dirty name
- Loan with restriction
They are similar to loans of loan sharks, except for the fact that they are offered and granted by companies, banks and financial institutions certified and authorized by the Central Bank (BC ). For those who need a lot of money and see no other solution, at the moment it can be useful.
What are the interest rates charged?
The interest rates on a personal loan of up to 12 months are generally high. Although these loans are designed for emergencies and financial urgencies, to pay for a longer period the cost would be practically unfeasible.
However, you should think about how you will repay the loan money with an interest rate of 16%, if you are not careful, you may have serious difficulties in rolling over your financial debts.
It is important to know how much a loan will cost in your pocket and how much interest you will have to pay during the term of the agreement. As an example, if you borrow R $ 750 for 12 months, the installments will be R $ 166.85 and will return to the bank approximately R $ 2,000 reais.
What happens if I delay the repayment of the loan?
- Do I need a short-term loan now?
- What are the alternatives if I have the name denied?
- Are you struggling to repay your loan late?
What happens if I delay the repayment of the loan?
If you delay payments on your loan, more interest and charges will be added to each installment due and the sum of the total debt. If you do not keep up with the payments, you will receive the standard notice made by banks and financiers.
This also means that the lender can take other steps, such as passing the debt to a collection agency or filing a lawsuit and so on.
It is important that you take steps to deal with payment delays before the situation gets worse.
Do I need a short-term loan now?
I understood everything but even so I want to make a personal loan to pay in a small time to cover debts of some priority accounts. OK! If you are going to pay rent, a mortgage or utility bills, you will probably only make your situation worse.
The best thing to do is to get professional help as a counselor to help manage your debt or a more practical solution like a debt consolidation – in the latter case confirm whether it is worth it.
Sometimes you may need to borrow money to pay for a single cost such as emergency repairs or maintenance, but before deciding to make a short term loan, you should consider alternatives to borrowing this way.
What are the alternatives if I have the name denied?
Many people take personal loans with high fees because they are struggling to get credit somewhere other than traditional banks and financial institutions. If you need a personal loan with fair rate, you should consider other alternatives.
In Brazil we still do not have the habit of using loans from credit unions, but we should.
Cooperatives are nonprofit community organizations that can offer everything from loans, savings and even bills to the benefit of their members. A credit union can be a way to get credit if you are being rejected by banks.
As in short-term personal loans, most credit unions lend small amounts between $ 100 to $ 5,000 real, may be more, however, the interest rate is much lower.
- Collective Financing – zero rate, – Crowdfunding
- Payroll loan – rates from 0.89% to 3.5% per month
- Personal bank loan – rates from 4.8% to 12% per month
- Payroll-deductible loan for employees – rate up to 5.4%, – Private Payroll
- Alternative loans between people – rate from 4.2% to 9%, – Peer to Peer Lending
- Loan with Pawn – rate of 6% variable for more or less
- Loan for negative – rates from 11% to 23% per month, average 15%
- Loan with restriction – rate from 11% to 23% per month, average 15%
- Loan without consultation – rate from 11% to 23% per month, average 15%
- Loan for self-employed – rate from 11% to 23% per month, average 15%
- Loan with lender – rates from 10% to 25% per month
Are you struggling to repay your loan late?
If you have outstanding debts or made a loan and are having trouble paying them, you should find a quick and effective solution to get out of this, otherwise you could start a cycle that increases the problem and grows the debt even more.
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