Method allows the reduction of debt making it one of the most advantageous and practical options of the market.
Some methods can help to scratch once and for all defaults and one of them is debt consolidation, that is, the technique of concentrating all your debts into one by means of a loan . Practice contributes to getting rid of different interest rates and the complicated task of having agreements with different lenders. The technique is being welcomed by the economic recession, which was intensively experienced last year and forced most citizens to review spending.
Analyze interest rates
The first thing to do is to analyze the interest rates on your installments, including your credit card. In many cases, borrowing with smaller interest to pay off debts may be more advantageous. Among the types of loans practiced by the market, payroll-deductible loans have the lowest rates, ranging from 2.1% to 3.1%. To get an idea, credit card interest, for example, spends at 15.6% per month. Guidance is to never fail to compare before any decision.
The task of analyzing takes time, but it is crucial to know if it is worth hiring the loan. With the consolidation of debts it is possible to have a greater control of the debit balance besides being a good way to save time and money.
Also study the possibility of performing Credit Portability , which allows you to transfer a debt from one financial institution to another with lower interest. The transaction has been guaranteed by the law of consumer law since 2006. It takes dedication and effort, which will be compensated with the current accounts bringing more tranquility and quality of life.