Hiring payroll loans for third parties does not seem to be such a good idea. Especially because, this is mostly a long-term debt.
See now what are the top 5 reasons not to hire payroll loans for others , according to finance experts.
The need for money can lead people to unplanned actions. And this can compromise the personal or family budget.
And more than that: it can make credit not available, in emergency situations, for example.
Retirees, INSS Pensioners, Public Servants, Employees of private companies and Military of the Armed Forces , can use the consigned loan or consigned credit card, enjoying exclusive benefits and benefits.
Since the payroll loan is deducted directly from the INSS benefit or from the paycheck of all credit lines, it ends up being the one with the lowest interest rates .
The difference between the interest rate of the payroll loan and the credit card, for example, can reach more than 300% per year.
But if on the one hand this translates into benefit for these people, on the other hand it can lead to an unwanted debt in the case of the loan to third parties.
If this is your case, know why you should avoid this if you want to keep your budget up to date.
1 – Financial imbalance with the commitment of your income
Anyone who has an organized financial life, does not even imagine with problems because of a loan.
Unlike other types of credit, in the case of the payroll loan, it is not possible to delay the payment of the debt.
Thus, on the day of maturity, the portion will be deducted directly from retirement, pension or salary.
It is certain that any debt compromises the income, however, the ideal is to make a loan only in cases where it is possible to plan
Economist Gustavo Souza also emphasizes that if someone makes a loan to third parties, he expects a refund and if this does not happen, in addition to the discount on the account, he may have other damages.
In the same way that the bank expects the contractor to repay a loan, those who lend money also have this
That way, if there are no alternatives, and it is really necessary to make the loan for third parties, it is also important to consider the possibility of non-payment. After all, unfortunately this is not too difficult to happen.
2 – Charge a debt that is not yours
When contracting payroll loans to third parties, surely, the debt holder will also assume the risk of bearing an account that is not yours.
And maybe that’s the biggest risk to anyone who lends money to others.
One thing is to lend ten, one hundred reais. Another is to lend three, four, ten thousand reais
One of the functions of a bank is to lend money. And of course, this has a cost, as the financial expert Pedro Gouveia warns.
Some people end up asking family retirees to borrow on their behalf because they know they will pay cheaper for it
But what can be an advantage for those who receive the money can be a risk to the “lender”, since the debt may not be repaid.
And taking into account that the contracts can have maximum duration of 72 to 96 months, for INSS beneficiaries and Public Servants, respectively, this can be a big problem.
The recommendation in this case is whenever possible, indicate other options for those who request.
3 – Not being prepared for contingencies or emergencies
In order for the Retiree, Pensioner or Public Servant to avoid over-indebtedness, a law has limited the percentage of income that can be committed to payroll-deductible loans.
This amount, also known as a settable margin (set at 35%) is what can be spent monthly with the installments of a loan or payroll deductible credit card .
Of the total amount 30% correspond to one or more loans and 5% refer to the expenses of the payroll deductible credit card .
Thus, a payroll loan can only be contracted if there is available or free margin. As the margin is recorded in the contract , the margin is unavailable until the debt is fully settled.
Now imagine, having a contingency or an emergency and not being able to count on the margin, for having a loan for a third party?
Believe it: this still happens a lot and have led the loan holder to resort to other resources. Looking for other personal lines of credit with more expensive interest.
And that’s where the danger lives! Credit card or overdraft debts can lead to indebtedness in no time.
Fernando Santos, a professor of Business Administration, comments that this scenario has become increasingly common nowadays.
Recourse to a new loan, to repay the previous one is only recommended when it is to take out more expensive debts.
Generally, people hire payroll loans to pay off other loans and not vice versa.
In the end, the most important thing is to always spend less than you earn and a loan to a third party can end up compromising this planning.
4 – Postpone dreams and other personal achievements
Contrary to what many people think, credit or consigned credit card can also be allies in pursuit of a goal.
If well used the loan can contribute with the extra money that was missing. And this, without it being necessary to enter into new indefinite debts.
Now, imagine having to postpone dreams and plans, by having to take on a third party debt … But that’s what can happen!
Until you finish paying the loan part of the rent will be compromised. That is, it will be harder to dare on investments, pay for that trip abroad or even change cars …
So one question remains: is it really worth giving up on one’s own accomplishments by the dreams of others?
Of course, this assessment is not always easy to do. However, taking out a loan for a third party can often mean giving up your own goals for a while.
5 – To damage bonds of friendship or relatives
And a no less important fact in this whole relationship is the breaking of personal ties. Charging a debt is not at all easy, especially if that debt is from third parties held on your behalf.
Regardless of how close you are to the other person, this can be a very embarrassing situation. Those that nobody wants to spend a day.
But anyone who hires payroll deductible credit is also subject to this.
And before the guilty feeling comes along, know that what can not always be considered a good deed will, in fact, benefit those who receive the money.
What is at stake here is not the use of money, but rather a commitment that is established, most of the time, informally.
If you have identified with any of these situations, know that making a loan for others is not always the best solution.
Learn other ways to help those who need money, without necessarily getting hurt.
Learn about other ways to help
Several may be the reasons that lead someone to apply for a loan on behalf of third parties.
In general, they are people who do not have enough income to apply for the loan in their own name or are unable to prove that income.
In the second case, it is common to find the autonomous professionals. The freelancer who needs extra money can not hire payroll loans, for example.
Even those with lower incomes, up to a minimum wage, can get other personal credit options.
Banks today are becoming more flexible in this regard, allowing access to credit with less bureaucracy.
Now, if you really want to help your friend or relative who needs money, ideally look for a loan that fits in the pocket. Plan very well and consider all the financial and personal risks involved.
So, always think well before you hire the payroll deductible credit , or any other, for a third party. Your financial health thanks!