When is it worthwhile to apply for a loan to get out of debt?

If you have been struggling for some time, you have probably considered taking credit to get out of this situation. Understand when it is worth asking for a loan to get out of debt.

Once you get bogged down and get into debt, there’s plenty of “advice” from the people around you, right? In general, they range from recommendations of what should (or should not) have been made to tips on how to save. In addition, others still talk about what to earn extra money at the end of the month. But if you have two questions that almost everyone in the choke has heard – or at least asked themselves. Why not get a loan to catch up?

When is it worth applying for a loan to pay off debts?


Because it is not considered a debt, the loan allows you to pay back bills and, in short, clear your name in the square. In addition, it can also help reduce the amount you would spend on accrued debt interest. It will depend on the rates currently paid and the conditions of your credit! So, to help you make the best decision, check below when it is worthwhile to apply for a loan.

But after all, when is it worth applying for a loan? Card interest and overdraft are 2 good reasons

loan interest

Before buying a product or hiring a service, it is common for us to compare prices and stick with the most advantageous option. After all, nobody likes to pay more for nothing. In the case of credit card debt, overdraft and loan debt, it’s the same thing. The difference is that instead of a product, what we are “getting” is money. And each financial institution puts the price on its fish in the form of monthly interest.

Amounts vary from bank to bank, but in general, both revolving card interest and overdraft interest are among the highest in the country, reaching up to 15% per month. Interest on a loan is usually much more affordable, especially when you can leave a good repayment in your name as collateral. This is the case with property and vehicle refinancing. Under these conditions, you can get rates from 0.99% per month at FinanZero.

If you already owe – or are about to get – overdraft, getting a loan can be a very interesting way out. Considering a 6.5% per month interest rate personal loan, for example, will save you good money by preventing debt growth in the months ahead.

Have other accounts overdue? Put it all at the end of your pencil and know when a loan is worth it

Interest on the card and overdraft is not solely responsible for the suffocation of many Brazilians. They also cause many people to accumulate debt:

  • Vehicle and study financing;
  • Creditors;
  • Late payment of taxes and basic services.

So, in these cases is it also worth applying for a loan?

In fact, there is no right answer. The first step is to contact the institution and try to renegotiate the debt. It is always worth trying to lower the total amount or the interest. So the important thing is that the new payment terms fit in your pocket.

Did not work? The tip is to review the contract for each debt, from the math and compare with the pre-approved loan offers you have. It is only worthwhile to apply for a loan if the interest charged on it is lower than the interest on current debt.

Important: When you do the math, keep in mind that you should consider total effective cost (MIT). That is, not only the interest, but all the charges involved in getting a loan, such as administrative fees and insurance.

Clean name or cash in hand = better opportunities

money loan

Of course its not cool when collection companies call you all day. But that’s not the only reason for wanting to clear your name. In most cases, people with a clean name get credit much more easily and with better terms. Using money from a loan to pay bills is a way to make dreams come true, like financing a car or a property.

Another situation in which a loan may be worth repaying is when the bank is willing to renegotiate interest and discount the cash payment. This is especially true for customers who have been in default for more than 90 days. Believe me, they have the greatest interest in receiving. For this, many banks carry out debt negotiation “fairs”, with discounts of more than 50% on total interest. At such times, getting a loan with lower rates and installments that fit the budget can be very advantageous.

No matter what situation you are in, the secret to knowing if a loan is worthwhile is not only to compare the terms of debt with those of a loan, but also to have the largest number of credit offers available. Enter our homepage now and request a quote to receive 1-10 pre-approved offers! And keep following our blog for more tips on how to organize finances so you never suffer from debt again.

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