It is no secret that the effects of the new coronavirus are changing course around the world and leaving financial markets unstable. Because of this, there is a risk of earning less over the next few months and even this year. But what about people who have recently taken out credit: what to do?
The word of the day is negotiation. The ideal is to sit down with the institution that provided the loan and renegotiate the situation. Try to talk to negotiate the payment of the next installments focusing on trying to prolong the payment of the next installments.
Some institutions are even considering aid plans or measures to alleviate this situation. The big banks, for example, announced a kind of 60-day freeze on the payment of the loan. In the case of Good Lenders , there are loan offers from some partners whose payment starts in 60 days.
Another point that can be negotiated is the extension of the contract. You can try to extend the credit term. The longer the period, the smaller the installments must be. This extension can make the parcel fit in your pocket.
COVID-19: A guide on how to deal with your finances in the crisis
One card up your sleeve that you can use is to take advantage of the large number of financial institutions that offer loans. It is possible to simulate credit offers and know before any signature the value of the installments, the payment term, the interest rate and the total effective cost of the loan.
Competition can bring benefits such as smaller installments and better payment terms. If you find a more favorable situation and the institution where you borrowed does not cover the offer, do not think twice before preferring what is best for you. As with the telephone or pay-TV system, it is possible to make the same migration with bank loans.
The Cream Bank itself clarifies this and makes some recommendations to Brazilians who fit this situation. An important detail: this movement needs to be made clear to the bank of origin to avoid charging any additional or extra fees for carrying out this movement.
In the case of Good Lenders, the use of artificial intelligence and knowledge of the pace of gains and expenses favor users. So much so that in the credit platform with the app’s partners, the loan offers are personalized and the conditions are usually better than in the client’s home banks .
Review the budget
Another possibility to help pay the installments may be to change some habits. Depending on the amounts committed, the constant accounts and the need to form an emergency reserve, it can be important to try to contain expenses, turn off the taps and save money .
One possibility may be to imagine that your monthly income is lower and try to live with a percentage below what you actually receive. If you can, the savings are already fulfilled.
Extra temporary income
Another recommendation may be to sell objects and clothes that are not used and only take up space in the house. There are still more alternatives ranging from trying extra income by exploiting professional skills (as long as they are in line with the care recommended by the authorities not to spread the new coronavirus) or even adapting to the new reality. You can, for example, sell lunch boxes to the greatest number of people working at home or make food delivery services or transport medicines and people (but for this it is important to take the necessary precautions to avoid contamination or transmit the disease).