Overdraft it's money that can save a lot of people, but it's a real trap for a snowball debt. You have to have financial education to not get the rope around your neck.
you are probably looking for for information on how not to get all tangled up with an overdraft. Below we separate useful information to help you better plan your personal finances.
Although this “additional amount” allows many to pay their bills on time, it has interest rates that can jeopardize your life. Data from the Central Bank of 2019 show that the overdraft occupies second place in the default rate of Brazilians (15.9%), second only to the revolving credit card (36.7%).
According to news published in Economic value, as of January 6, 2020, in accordance with Resolution 4,765/2019 of the Central Bank, the interest rate on the overdraft has a limit of 8% per month or 151.82% per year for individuals and MEIs (individual micro-entrepreneurs) who use the modality.
First thing you must do is:
Evaluate the need to use the overdraft.
Acting wisely and not getting into a financial snowball is analyzing your entire budget. Experts recommend that you put all earnings and expenses on the tip of your pencil and assess whether the overdraft amount is really essential.
If it is necessary to resort to the modality for a period longer than 30 days, possibly, the best solution is to look for other credit options with lower interest rates than this one.
Economists recommend using the overdraft only in emergency situations and, preferably, when there is already a prediction of when you will be able to replenish that amount to the account, since its interest rates are very high – which causes the debtor balance to grow quickly.
Overdraft, essential information
Pursuant to the Central Bank resolution, if the financial institution decides to reduce the amount available for the customer's overdraft, it must notify it 30 days in advance. However, for you to increase the limit value, the bank can only make the change with prior authorization from the consumer.
If you have become indebted with an overdraft, know that it is very important to research well before renegotiating your debt. Simulate in traditional and digital banks and in fintechs to find out which operation is best suited to your payment capacity.
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