We are all subject to financial emergencies, be it a medical problem, unexpected car maintenance or any other type of unplanned expense. At those times, who doesn't have a emergency reserve ends up having to get borrowed money.
But how to do this safely, preventing debt from turning into a snowball? To answer this question, we list in this article six ways to borrow money without risk.
- Payroll loan;
- Personal loan;
- Granting of a secured loan;
- Anticipation of 13º;
- Anticipation of the income tax refund;
- Withdrawal of wages on demand.
Interested? Stay with us!
In what situations is it necessary to borrow money?
Before you borrow money, the first care you should take is to assess whether this is really necessary. After all, every loan becomes a debt, and it takes good planning to be able to meet this commitment and avoid financial problems in the future.
Despite this, this type of resource can be very useful in many situations, such as the ones we will see below.
As stated at the beginning of the article, covering emergencies is one of the main reasons for borrowing money.
A lot of people use the limit of overdraft or install the credit card bill to deal with unforeseen circumstances. However, these are far from being the best options, as they have the highest interest rates on the market, which makes the account much more expensive.
Using a loan, in these cases, is much cheaper. So whenever you have an unexpected expense, look for credit lines that fit in your pocket instead of resorting to the quickest alternatives.
Pay off debts
At first glance, it may seem strange to recommend that you settle your debts contracting another. But watch out: despite being a new debt, when borrowing money you can choose a line of credit with lower interest rates than the ones you pay on your current debts.
In addition, it is a chance to concentrate different expenses in one ticket only, dealing with only one interest rate and one creditor.
If you have a dream that is expensive and can't wait to realize it, one solution is to borrow money. So, you can pay for that course you've always wanted to do, renovate your home or even start a business.
Whatever your goal, remember: while the money you borrow is useful, the ideal is to get an amount that fits your budget. There is no point in solving a problem now and suffering to be able to pay the installments up front.
So, before applying for the loan, set up a expense spreadsheet, calculate your budget to learn how to plan.
Where to get these resources?
When it comes to borrowing money, the first places that come to mind are banks and finance companies. But know that they are not the only places where you can look for these resources.
In recent years, fintechs emerged as a good credit option in the market. These companies use technology to improve the customer experience and facilitate access to credit, with an online contracting process and excellent payment terms.
Cooperatives linked to companies or professional bodies and unions are also a good alternative.
You can also resort to internet credit seekers, which compare the loan conditions of different institutions. Thus, you can check the rates, terms and values offered by each company.
In any case, always do a previous research about the institution from which you intend to borrow money, so as not to fall for scams. Many opportunists create fake websites to take advantage of people's needs and try to deceive them.
Check if the company really exists and if it is authorized by the Central Bank to act as a credit provider. Also be wary of offers with excess facilities and never make advance deposits.
>> Do you want to know more about the care needed when taking out loans? Check out this other blog post:
What are the safest ways to borrow money?
When borrowing money, it is essential to study ways to do this without taking risks or paying abusive interest. Compare credit types, rates and payment terms to choose the best option for your goal and budget.
Often, a modality looks great due to the easy access to credit, but in the end the installments are many and at very high values.
To avoid headaches, check out the most recommended options on the market for borrowing money.
1. Payroll loan
There are three types of payroll loans: for employees of public or private companies, for retirees and for EHIC pensioners. In all cases, the payment of the installments is discounted directly from the payroll or social security benefit.
With this, the institution understands that the risk of default is lower and offers better payment terms, with lower rates and a longer term. The disadvantage is that not everyone can take advantage of this type of credit, as self-employed workers, for example.
2. Personal loan
O personal loan it is intended only for individuals and is usually used to request small amounts on contracts of a few months.
Borrowing money this way is relatively simple: just present your documents, go through a score analysis and, if approved, the credit is transferred to your checking account in a few days.
As it does not require any guarantee from the borrower, the interest on this modality is higher, since the institutions understand that the risk of default increases. But still, compared to the overdraft and credit card, the personal loan has a great cost-benefit.
The bad news is that people with a dirty name are unable to access this type of loan, as well as people with restricted credit.
3. Guaranteed loan
This modality offers interest and conditions much better than the market average, but requires that you offer a valuable asset as a guarantee of payment. Items such as cars, real estate and jewelry in this type of negotiation.
This is done through a process called chattel mortgage: the asset is linked to the financial institution by means of a contract, but remains in the possession of the original owner. If the person does not pay his debt, the asset is taken over by the company to cover the loss.
Precisely because it has this guarantee, the amounts of these loans can reach millions, depending on the item sold. It is indicated for those who have big dreams of consumption, such as renovating the house, studying abroad or traveling.
4. Anticipation of 13th
Here, the bank lends the customer the amount equivalent to its 13th, so that it is returned with interest until the date of payment of this benefit. However, the amount advanced is not usually full, but about 80% of the total salary.
This advance is very useful if you want to buy something in cash and the rates offered are lower than those of the installment plan. Money is also welcome for resolving emergencies for which you currently have no resources.
But keep in mind that at the end of the year you will no longer have this amount available, as you have already used it in advance. In addition, if the company does not pay your 13th on the scheduled date, you will still have to honor your commitment to the bank.
The amount is automatically deducted from your account and, if you don't have cash on hand, it will end up in the red.
5. Anticipation of the income tax refund
In the same way as the anticipation of the 13th, you can also request an advance of the income tax refund. There's one specific bank loan for this purpose, which usually has low rates.
The amount is automatically debited from your account as soon as the refund is paid by the IRS. In other words, if you do not have that cash on this date, you may incur a new debt on the overdraft.
In addition, if there is a correction to the declaration, the amount considered will be that signed in the contract. Therefore, if you receive a smaller amount than expected, you must bear the additional costs.
6. Withdrawal of wages on demand
In recent years, many companies have started offering their employees a new means of remuneration: the on-demand salary. Through an application, the employee can request the amount referring to the days already worked in the month at any time, without having to wait for a fixed date to receive.
Withdrawing the amount available to cover an emergency or paying an urgent bill would be like borrow money from yourself. After all, the resource is already yours, you are only using it a few days ahead of schedule.
Now that you know the main ways to borrow money without risk, you are prepared to choose the best option if you need credit, for whatever reason. Just know the size of the installments that fit your budget and make your decision.
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