With inflation and the basic interest rate falling, the season is good for those who want to reduce financing costs.
Especially for those who have taken a payday loan in recent years
The average interest rate on this loan fell 2.5 percentage points in 12 months to 25.7% a year, according to Central Bank (BC) data for April, the latest available.
But if, on the one hand, changing financing, making the benefits lighter, can give relief to the monthly cash flow, care must be taken when renegotiating. According to Procon-SP, many financial institutions employ “pranks” at this time. The consumer is only led by the offer of lower interest, but ends up lengthening the term of the loan. Thus, the amount of installments increases and the total debt becomes even more expensive.
For coordinator Renata, attention is needed above all to financial approaches that seek to exploit the inexperience of clients. She says the agency receives cases ranging from missing information to payday fraud. “Some companies mislead contracts,” he says, noting that “retirees are the most enticed.”
Pay off debt as soon as possible
According to the coordinator, there are financiers who even create structures to close operations on impulse. “They make the proposal by phone and already send a motoboy to collect the signature,” he says. To avoid headaches, she advises the consumer to always solicit the offer he receives in writing and, if unsure, take the financing contract to a lawyer or financial planner to check the terms.
The general rule not to fall into this trap is to pay off debt as soon as possible, explains the director of the National Association of Finance, Administration and Accounting Executives (Anefac), Miguel. “Often what is offered with refinancing is an extension of the term. But the best thing is to negotiate this, try to do it as if it were a portability in the same institution, ”he says.
In the case of payday loans, where amortization occurs directly in the borrower’s salary, the institutions have been fighting a battle for clients. The president of fintech, Bruno, knows this dispute well because he also operates in this market and advises to distrust the promises of lower interest rates. “When you make a new contract like this, the financial institution benefits, because it holds the customer in compound interest for longer,” he says.
Not always increasing the number of installments is bad. If the value of the installment weighs on the budget, or if an emergency event occurs, extending the term may be helpful, says financial planner Camargo. In such cases, payment dilution to fit your pocket may be required.
“Even paying longer, sometimes it’s a solution for those who have lost their jobs or are facing illness. The tip is to refinance and then when you are in a better situation, seek to repay, ”says Leticia.
It guides consumers interested in renegotiation to use a financial calculator, such as the one offered by the Central Bank. Thus the cost of the operation becomes clearer.
The report targeted the three main private banks in the market (Bank and ABC). Only BDC did not respond to interview requests.
The institutions highlight that they seek to work with their clients on the conditions offered in refinancing and payday portability.
ABC, for example, points out that the simulation of payday refinancing can be done on its digital channels. Bank points out that “it follows rigorous internal processes with the objective of not generating additional burdens on those who opt for refinancing.” The information is from the newspaper.