It’s already 2017, and the New Year’s Eve billets are here, right? You probably already have IPTU, IPVA, bill of materials, and more. You are seeing the amount and do not know if you will be able to pay and it is possible that the question now is: is it time to apply for a loan?
How to pay new year bills?
Very calm at this time! Be careful not to take hasty actions. If you have a lot of new year bills to pay and have not prepared for it by making reservations, the first step is to understand exactly how much you owe.
Make a spreadsheet with all your normal costs and then add these start-of-year bills (IPTU, IPVA, school supplies, etc.). Initially put the values in sight and see how you can take advantage of existing discounts.
If you find that you cannot pay these bills in cash, edit the spreadsheet by placing the values of these accounts with the maximum number of installments. Spread between the months, always taking care to write down all your expenses and make real estimates. Then check if the difference between your income and debts is greater than zero.
Remember to consider emergency reserves and actual costs. Do not leave out, for example, costs like supermarket, pharmacy, etc. If you don’t know exactly how much you spend, take a bank statement from the last few months and see how much you spent each month at these establishments. Then make an average.
If by paying these bills your balance will turn negative, it is time to think of a loan as an alternative. It may seem like an extreme measure to anyone who has never taken credit, but the personal loan can free you from high interest rates.
In overdraft the amount due can grow very quickly. In December, interest on this type of credit was 314.51% per year, while in December 2015 it was 240.88% per year.
Now, if you thought about using credit card as plan B, be even more careful. Interest rates on card revolving in December reached 453.74% per year.
In the case of Lendico’s personal loan, the annual Total Effective Cost (CET) ranges from 43.70% to 99.52%. This variation occurs due to the credit analysis and the installment option made by the customer.