Payroll loan: how to renegotiate your debt?
March 24, 2019
A payday loan can take good money from your finances. Negotiating your paycheck debt is a way to keep the budget under control and, still, to get discounts on the payroll. Any payroll loan can be negotiated, provided the following tips are followed strictly in the renegotiation.
Paycheck Renegotiation: Define how much you can afford
The bank will tell you a amount to be paid to repay your loan. But you have to have a value on the tip of the tongue, lower. For this, it will be necessary to adopt a strategy of budget and payment of debts, such as snowball strategy. Within the strategy, you will have a maximum amount that can pay for installments.
How much you can afford is the amount you have available after paying basic bills for your survival, such as housing and food bills. If plot values remain high, other strategies should be combined in the negotiation.
The payday loan is easy to renegotiate but you have to have a little waist play to get better terms for your loan. (Photo: www.hsba.com.br)
Pay smaller installments but pay more installments
At the time of the renegotiation, you can ask the bank or financial institution to extend your loan for longer. This means taking the installments that you are still owed, and dividing the debtor amount into new installments.
A practical example: let’s say you have a paycheck loan payable in 12 months, and you’ve already paid 4 of those installments. Assuming that each installment, already with accrued interest, is R $ 100, totaling a debt of R $ 1200.
Since it has already been paid R $ 400 of the R $ 1200, you are owed R $ 800 not yet consigned. If the installments are heavy in the budget, you can renegotiate those $ 800, and instead of paying it in 8 installments of $ 100 in 8 months, you can ask the bank or financial institution to install those $ 800 in 12 months, for example. If the interest stays the same, you will pay a smaller installment of $ 100, but remember that you will pay more interest.
Payroll loan: portability of credit
Any loan can be transferred between financial institutions through the portability of credit. This means that if you have a paycheck loan at an X institution, but the Y institution has lower interest, you can request the transfer of the loan to the smaller interest institution. But there are caveats.
First, the institution offering lower interest rates must accept the proposed credit portability. Take a document with the manager with all of your outstanding balance as well as the Total Effective Cost of the loan.
Second, you will need to visit several institutions to compare interest rates on portability, and see if any offers lower rates than yours, or you can install more often. Take all the information and your proof of income. And go back to previous institutions to try to reduce interest rates and provoke competition for your money.
Third and last, during portability, always think first of the maximum amounts you can pay per month before you think about the interest. By increasing the number of installments, the renegotiation is lighter, and you will have more free money to handle other financial obligations.
Do not Forget the Payroll Loan Details
Put everything in writing. Know the details of how much you have agreed to pay, how much you are getting in advance of the loan, how much is due, interest rates, how the installments will be paid, any other information or extra trading offered by the financial institution. Everything should be in the contract, exceptions. This will protect your money and you from bad financial institutions that just want to get you into debt. Do not forget, during the process of renegotiating a consignee, make a reorganization and financial planning, never to need a loan.