The loan to the indebted has been in great demand and this is due to the number of defaulters in Brazil, which has grown considerably.
The Good financial released in April this year that the number of people in debt in the country in March, has exceeded 63 million. Check out details of default history and how payday loan beneficiaries can turn out red.
The increase in the default rate
Defaulting is a financial situation where debts are greater than the value of monthly income. Unfortunately, this is a very common situation among Brazilians. This is partly due to free access to credit cards and personal loans. That is, people end up using these resources indiscriminately and end up losing control.
According to Good financial , the main reasons for defaults in Brazil are debts with credit cards and financing, in addition to unemployment . In 2016, when the first statistical data on default in the country, made by Good financial , were collected, there were about 59.3 million people in this situation.
Already in the consecutive years, until 2018, approximately 1 million people in arrears were added every year. However, in 2019, only in the first 3 months more than 63 million indebted people were found.
I am in default, what should I do?
Many people do not feel comfortable in exposing the financial situation when they are in the red. But, this is a very common scenario in the country as seen above. To get out of the red first, you have to start cutting back on spending and practicing economics. However, this attitude takes time until the results appear and you can cure your debts.
For this, it is recommended to calculate the amount of debt and find the best way to remedy it, without worsening the situation. To do this, it is important to place three important aspects in the balance: values made available, interest rate charged, amount of the installment to be paid.
What are the best options?
To remove debts the most sought after solution are loans. To choose the best credit option, the applicant needs to evaluate the conditions offered and the availability of each bank. For this, we will explain better about the three main forms of loan application for indebted : overdraft, personal credit, paycheck credit:
Payroll loans are granted retirees and pensioners and public servants. It is a modality in which conditions are regulated by public agencies. This makes the applicant not subject to abusive requirements. The rates of payroll loan are around 2.10% per month.
With the payroll, the applicant can make the loan repayment with up to 30% salary, which is the assignable margin. You can also request up to 9 different credit lines if you need to, as long as the sum of the credit installments does not exceed the 30% margin .
This modality does not require credit analysis and does not query the score. In addition, the applicant need not have any agreement with the bank to apply for the credit. These regulations make financial institutions increasingly attractive to beneficiaries by generating market competitiveness.Personal credit is the most sought after as it is a form of loan that does not limit public. However, it performs credit analysis with the protection agencies such as Good financial , besides checking the score in the scores . For this reason, people who seek this type of loan to clear their debts and clear their name often can not get access to this type of credit. If the case is granted personal credit for negatives, the interest rates will be very high.
The interest charged on personal loans amounts to more than 20% am . Due to the payment deadlines that can be up to 36 months depending on the analysis done with the bank, the installments are very high and this often results in the over indebtedness of the applicant.