Is the credit card loan as a means to overcome the crisis really worth it? The world is experiencing a real structural change, due to the new coronavirus that has already shaken the foundations of large countries.
In the face of chaos, for many people, the only thing left to use is the revolving credit card, through the interest of the overdraft, or taking a loan, which is the best option?
For this reason, today, in Brazil and in the world, many people are worried about the economic consequences of the new coronavirus that is currently occurring with impressive speed. That's because the only way to contain the spread of the virus, which still doesn't have a vaccine, is social isolation.
But no fuss, right? Lets go to what matters? Money!
It is valid to say that many companies had to close their doors to save the health of their employees, and so, all customers, we are at risk of running out of money. But is it worth using credit card revolving during the coronavirus crisis to ease finances? Or take a loan on the card?
Our first answer is: yes, if you will be able to pay in the future and no, if you are doing it out of desperation.
But what is the difference in interest on the credit card revolving after all?
Come on, it's simple to understand; take a good look: when you don't have enough money to pay your credit card bill in full, there are two possibilities: make a minimum payment (or more, but less than the total amount of the bill), or pay in installments.
In this way, the installment plan allows you to pay the amount due in fixed monthly installments. After you make the installment, the negotiation is closed, and you cannot go back, even if you have the remaining amount of the invoice.
And another important point: you can even pay everything you owe, but interest will have to be paid too.
In general, interest is lower in installments than in revolving credit.
However, revolving credit allows you to pay a portion of your bill and pay off the debt within the current month, which can be a good alternative for those hoping to resolve the issue soon.
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Source: Economic value
