Just like any credit option, there are advantages and disadvantages of payday loan. Further editorial at wbts-forum.org
Retirees, INSS Pensioners and Public Servants: Find out when your paycheck credit card is worth it and if it can meet your need!
What are the main advantages and disadvantages of paycheck credit card?
If well used, any form of credit may come to contribute to those who need extra cash.
Regardless of the reason for using the money: to pay more expensive debts , to make the dream trip , to renovate the house, to pay for his son’s studies.
In the end, what everyone wants is to find a credit alternative that is really worth it.
It is in this context that the famous credit card appears, considered as an easily accessible credit modality. However, one must carefully evaluate the options available to make the best choice.
For this reason, payday loans have been gaining prominence among the most popular credit services. But is it really advantageous?
Want to make a correct financial decision without harming your pocket?
So, read on to know the advantages and disadvantages of payday loan.
Main Benefits of Payroll Credit Card
Comparing the traditional credit card with the consigned credit card you can notice many advantages.
Conventional cards usually come with high interest rates, which often multiplies the value of the original debt. Not to mention the revolving credit.
Available to retirees, pensioners and public servants, paycheck-deductible credit card offers varied and exclusive benefits in some cases.
Find out now which are the top 5 advantages of payday loan .
1) Smaller interest
Unlike traditional credit cards, payroll has your invoices discounted on the payroll . This amount may not exceed 5% of the monthly net income of the contractor.
Therefore, since the risk of receiving the loan amount is lower, the banks consider it a low risk operation.
In practice, this translates into lower interest rates. In general, a common credit card has interest that can reach 15% per month. The payroll is on average between 3% and 3.05% per month, which is already reflected in a huge difference in the time to pay the invoice and in savings for the pocket .
2) Without annuity
When researching credit cards something always strikes: the annuity. The fees can be huge, reaching $ 50 or more, greatly reducing the advantage of having a credit card – since this amount is charged even when there is the monthly use.
According to an IDEC survey conducted last year, in one year the credit card annuity rises to 188% .
Unlike traditional ones, payday loans are free . He has no annuity and the client does not need to negotiate with the bank to achieve this.
So just hire the payroll deductible credit card and quit using without fear of the additional costs. What’s more, this card has benefits similar to lower values.
3) Credit card released for negatives
Although recently some measures have been launched to control the high high of credit card interest rates, it is certain that there is still much to be done.
The risk, both for those who contract a credit card, and for the bank that offers the credit is great since there is the risk of default.
With this, the value of the initial debt may be increasing, leading to financial imbalance or even the denial of the name which may prevent the consumer from obtaining new credit in the market place.
This no longer occurs with the paycheck credit card. Negative pensioners, Pensioners or Public Servants can contract the card without any paperwork, since there is no consultation with the SPC or SERASA.
It is also possible to use the paycheck credit card for withdrawals.
4) No “snowball” debt
Those who have credit cards know how easy it is to increase debt and end up in a “snowball”. After all, they are interest over interest on a debt that is accumulating.
First, the consumer installs the initial purchase, but for whatever reason was unable to make the payment, depending on the term in which to pay, the debt will already be two, three times higher.
With paycheck credit, since the minimum amount is deducted from the monthly payroll, if necessary, at least the minimum is already guaranteed.
If you prefer the consumer can pay the full amount, making the payment of the ticket with the amount of the difference. Otherwise, the open amount of the monthly invoice will be added to the total of the next one.
Although the risk seems to be the same, the paycheck-deductible credit card allows for predictability of expenses. This, in turn, also enables better financial organization.
5) Easy to hire
Anyone of the groups served with RG, CPF and proof of residence and disposable income, can contract the paycheck credit card online .
By demanding less bureaucracy and by having a simple liberation process, payroll is an excellent option for those who need money, but want to pay less interest.
And as we set out to talk about the advantages and disadvantages of payroll-deductible credit card, check out some disadvantages now.
Main Disadvantages of Payroll Credit Card
There is at least one type of credit for each type of need . Therefore, not always the consigned credit card will be unanimous.
It may help to resolve some situations, but in others it may not be the right choice. And this can happen for some reasons: limit of the released credit, form of discount of the payment, among others.
Find out now what are the main disadvantages of payday loan.
1) It is not possible to delay the payment of the discount on the paycheck
On the day the invoice expires, the limit value of 5% will be automatically deducted from the paycheck or INSS benefit.
For those who manage to plan financially no risk, but for those who have little financial control can be a problem. In the end, the net amount received from the salary, pension or pension at the end of the month will be lower.
2) Higher Interest Rates of the Payroll Loan
Interest on this type of credit card is cheaper than conventional credit cards, but a little more expensive than the payroll deductible loan.
The payroll loan has interest rates of 2.08% for INSS Pensioners and Pensioners and 2.05% for Public Servants.
Depending on the need, you can use both simultaneously.
3) Can only be purchased once
The consigned credit card has an exclusive consignment margin of 5% . Added to the allowed 30% margin for payroll loan installments, add up to 35% which is the total amount that can be committed from the rent every month.
Therefore, Retirees, Pensioners and Public Servants can only hire one consigned card at a time. In the case of Federal Public Servants (SIAPE) it is necessary to issue the consignee authorization in the name of the bank of interest, issued through SIGEPE.
4) Commitment for longer
If the consumer makes only the 5% payment (automatic discount) will prolong the value of your debt.
If this is the idea, in case of a need or emergency, there are no problems. However, it is always advisable to spend what is within the personal or family budget.
Therefore, there are certainly advantages and disadvantages of payday loans as well as any other type of credit.
The difference lies in understanding which cases are most appropriate, benefiting from all its advantages.
And in the end, the most important is: just make a loan if you really need it.
Just make a loan if you really need it
Although many people do not consider it, credit card is a type of loan. And like any loan, it is paid at the end with interest rate and other costs to the bank.
Therefore, all credit must be acquired consciously . If it is possible to buy the good, product or service in sight, that’s fine. But not being, always opt for the best credit option for that type of need.
Do you want to make a payday loan?