Real estate mortgages and student loans are credit alternatives that are certainly not included in the numbers that Brazilian banks present as the largest types of financing loans, personal loans, payroll loans, credit for negatives and credit cards are probably the types of the most used financial resources of the moment. Did you know that more than one third of a citizen’s expenses are made by credit card, and the rest consists of loans?
What credit alternatives are available in Brazil
Economically active people generally seek financial resources to meet the short-term lack of money in an unexpected or emergency situation, they hire from small short-term loans to long-term operations and loans with all kinds of payment model and varying interest rates.
If you believe that you fit your lender’s criteria for credit, go ahead and hire, today’s request processes are easy and quick to complete. Each of the credit alternatives and loan terms of money has its terms and conditions and depending on your financial institution the approval may or may not be facilitated.
Good debts against bad debts
Not all debt is “bad”, have you heard it? There are some types of loans that can help you, such as a home equity loan (a mortgage) or even a student loan. But, asking for a financing to buy a zero car that will help in an activity that gives you some income can be a good debt as it allows you to earn extra money.
Catching a working capital for your business to be expanded or increasing revenue by implementing some type of growth plan can also be good.
Bad debts, on the other hand, are those that will not be “paid for themselves” in the future. These are the debts you can accumulate to finance your personal desires or other people, your luxuries, daydreams, your compulsive shopping, travel or fun out of your budget. The basic rule with this type of purchase is if you can afford it and if it is essential, and if you must borrow interest money to get it.
Credit Options for Credit
There is also a third option as part of credit alternatives, where people borrow and use credit in order to “own or own”. If a bad credit card or other common card is your only way to buy at a food store, or if you need a loan to cover your household expenses and costs, these are still bad debts as you are deconstructing your finances .
When a person can not pay basic debts with their own income, this is a bad sign that you have problems and bad debts. This can have serious consequences for you and your finances. If this is the scenario you face, lending more money will further worsen the situation.
Fortunately, there are a number of free and independent consulting services that you can talk about about your finances. Making a debt containment plan and adjusting your debt is the first step in finding a healthy solution.
Alternative ways to lend
Although credit cards and personal loans are your biggest asset – if you can repay within the timeframe – there are many alternatives that can be much better options than bank loans.
Borrow money with friends and family
Borrowing from friends and family is the most common way of not paying interest and not dealing with institutional bureaucracies. If you are confident that you can repay any amount of money borrowed, you can apply with friends and family.
If you do, make sure you agree to the terms and how and when you will return the money to the lender. You can even do this by writing (loan agreement) so you do not forget your commitment.
Borrow money from credit union
Credit unions are community organizations that often offer bank accounts, payroll loans, people loans, and financing. Interest rates are often much lower than other banking and financial organizations – try it out!
Get credit limit by check in account
The overdraft can be incredibly expensive, we can not disagree with this, but if you have access in an emergency – what’s wrong? Some banks offer their customers this special interest-free credit line for a period, so if you consider this mode, do not think twice. However, I use only within the interest-free period.
Use a 0% purchase credit card
If you have a good credit rating, and need to make a reasonable purchase value, an unlimited credit card or interest-free credit card is a great way to borrow money for a few days or months.
If you have the ability to make repayments each month and have a clear plan to pay these debts at 0% interest – that sounds good to me – you will not be charged interest for the use of the card. As we said, there are various forms and alternatives of credit and loans to be used, you just need to understand which one is best for you.