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Debts

As a debt of R$ 2000 evolves into 5 types of loans

09.17.2015

This article was translated by an automatic translation system, and was therefore not reviewed by people.

 

 

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The number of defaulters has already reached 56.4 million, according to Serasa Experian, which means that a share of 27.54% of the population has been unable to pay its debts, if we consider the current Brazilian population of 204.76 million of people (according to the IBGE).

If the data itself is worrisome, to observe the interest charged on loans today the situation is even more daunting.

In July, the average interest on revolving credit cards, which are charged when the customer does not pay the invoice card, reached absurd 395.3% per year, or the equivalent of 14.26% per month, according to monthly survey of interest of the Central Bank (BC).

Although some people use that often credit line, there are much cheaper options available in the market, as can be seen in the following table, which shows the average interest rate of five types of loan, according to the survey of BC.

Loan Type / interest per month / per year Interest

Payroll / 2.84% / 39.9%

Personal loans / 6.54% / 113.8%

Installment credit card / 6.77% / 119.5%

Overdraft / 10.92% / 246.9%

Revolving credit card / 14.26% / 395.3%

Source: Monthly Survey of interest rates of the Central Bank, for the month of July.

To show exactly how your debts multiply these different credit options, which are some of the most used by individuals today, EXAME.com simulated what would be the final cost of a 2000 real loan in each of the lines after six months and one year. See the following results.

Payroll loans

Debt of R $ 2000 after six months: R $ 2,365.93

Debt of R $ 2000 after one year: R $ 2,798.82

Interest of payroll loans are among the lowest in the market. They are 9.9 times lower than the rotary credit card interest, for example. As the debt installments are deducted from the borrower's payroll, banks have more assurance that they will receive payment on time and practice reduced rates.

In the simulation was considered the average rate of payroll loans to private sector workers, 39.9% per year, but interest rates are even lower for INSS pensioners and retirees: stay at 28.1% per year on average, according BC data.

The rates are cheaper in this line because the bank still have more assurance that debt payments will be made on the day, after all the risk of the INSS not pay pensions and pensions is much smaller than the risk of a private company fails to pay the salaries of its employees.

So does the payroll for public servants, as the bank also has more assurance that the government will pay the wages on time. In this case, the average interest is 26.3% per year, according to July data from BC.

The downside is that not all people have access to payroll. It is offered only to the INSS pensioners and retirees and to employees of companies that make agreements with banks to offer payroll loans as a benefit to their employees. Therefore, some companies may choose not to provide the benefit.

Personal credit

Currency: debt almost quintuples in a year in the rotating credit card © Thinkstock / Nastco currencies: Debt quintuples almost a year on the rotary credit card

Debt of R $ 2000 after six months: R $ 2,924.87

Debt of R $ 2000 after one year: R $ 4,277.42

Personal credit is already saltier than the payroll, but it's still much cheaper than the overdraft and revolving credit card. As shown in the simulation, in a year the debt more than doubles on the line. How is a credit that is not directly deducted from payroll, banks already charge higher interest rates.

But it can be an option for those without access to the payroll. A tip may be seeking personal loans offered by websites that have lower interest rates than those charged by major banks. As these sites are not spending on physical branches and are generally stricter in granting credit, they have more concentrated portfolios in good payers, which reduces risk and consequently the interest.

Some of the sites that offer this type of loan are the Good To Credit, the Geru and Lendico (see the full story on the specialized sites in loans). These sites partner with small and medium-sized banks to provide the resources and act as banking correspondents.

One should be careful, however, to the collection of management fees. Therefore, it is important to consult the Total Effective Cost (CET) of the transaction fee that includes not only the interest, all costs involved in the loan.

Overdraft

Debt of R $ 2,000 in six months: R $ 3,724.68

Debt of R $ 2000 in a year: R $ 6,936.63

Overdraft facilities, besides being expensive, is a very dangerous credit because of their practicality. To use the overdraft, the customer simply enter the negative, as popularly he said.

Normally, banks now provide a pre-approved limit for the line. So, if the client has an overdraft limit of 5 thousand reais, for example, from the moment that your account is reset, the next spending are now discounted this limit and interest begin to roll.

Some banks offer the possibility of overdraft use without charge for a few days, but past that period, if the balance is not corrected, the interest charged will be recorded throughout the time the credit was used.

A tip to avoid this type of charge is ask the bank to reduce or suspend pre-approved overdraft limit. It is also important to check often your bank statements to make sure that your account is not in the negative. Some banks offer free shipping services daily account balance via SMS.

Installment Card

Debt of R $ 2,000 in six months: R $ 2,962.96

Debt of R $ 2000 in a year: R $ 4,389.56

The parceling of credit card, as the name suggests, is the line of credit whose interest become due when the invoice card is not 100% paid and the customer chooses to make the minimum payment.

Although banks show the installment as an almost automatic payment option - even without seeking the credit, the minimum payment option of the invoice is always offered - the interest is very high.

So if you can not pay off the card, the ideal is to seek cheaper credit lines. In addition, by opting for the minimum payment, the customer need to pay the next bill both the value of the previous installment bill, as the value of the current bill, which can turn the debt into a snowball.

Rotary card

Debt of R $ 2000 after six months: R $ 4,450.36

Debt of R$ 2000 after one year: R$ 9,902.86

Rotary interest credit card almost dispense comment. Just note that they come to 395% per annum to know that their rates are extortionate. With interest so high, quickly the debt doubles in size after one year and its final cost is 4.95 times higher than its initial value.

As the overdraft, it is also a dangerous line, since interest rates start to focus from the time the customer does not pay the credit card bill.

It is therefore essential that the customer resort to other credit lines to realize that you can not pay the invoice of the card.

 

Source: MSN

To access the MSN site, click here.

 

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This article was translated by an automatic translation system, and was therefore not reviewed by people.

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