If you are considering a paycheck loan, you may be wondering if it is possible to make a loan with no margin available. The answer is yes. But be aware of some issues.
Because they are deducted directly from the contractor’s payroll, the installments of a payroll loan must correspond to a maximum of 35% of the salary or benefit the person receives.
When one takes more than one loan of this type, it is likely that it will run out of money, that is, that the installments of a new loan do not fit within those 35% stipulated by law.
What many do not know is that, even without assignable margin, it is possible to take out a loan. First, consumers are expected to know how to calculate the assignable margin of a loan so that they can manage more than one operation at the same time.
Yes, it is possible to get a payroll loan with no margin available. But for that, you should be aware of some issues.
There are two ways to get a borderless loan. Are they:
Those who have already paid part of a debt of another payroll loan can resort to this option. Renegotiating the debt with the bank may allow the extension of a debt, increasing the term of payment, to reduce the amounts of the installments and thus add another loan.
The disadvantage is debt growth, not only because of the option to take another loan, but also because of the increase in the payment term, which can add more interest and raise the Total Effective Cost (CET) of the operation.
Another way to get a no-frills payday loan is to make debt portability. In this case, the consumer must find a bank or a financial institution that agrees to buy his previous debt so as to join all the loans into one, discounting the installments paid and extending the term of payment.
Some banks or financiers try to persuade customers to debit the installments of a consignment loan directly from the checking account. However, this procedure turns out to be a personal loan.
With this, the contractor will probably pay interest and charges higher than those of a consignee. So stay tuned!
In the payroll loan, the discount is always made on the payroll or the benefit, without the inclusion of current accounts, tickets, etc.
Another important point is that all the advantages and disadvantages have to be considered. While it is quite advantageous, a payroll loan may not be the best option for certain customer profiles.
Evaluating all the points required to get a loan is essential. In addition, the no-margin loan should be the consumer’s last resort. First of all, it is necessary to establish control of your financial life to avoid exaggerated indebtedness, which may be irreversible.
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