Read our text and see how to get out of revolving credit card interest and pay off this debt!
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The card is the financial product most desired by people, the majority of the population has, has had or really wants to acquire this item.
Indeed, having a credit card with a limit is great, especially nowadays, when it has become even more beneficial.
With them, you earn points to exchange for discounts on services, cash back and even extra money with a referral.
However, it is only an ally in the hands of those who know how to use it, in the hands of those who do not know how to use it and do not have control, it can bring some harm, among them interest on revolving credit.
But who hasn't, right? But don't worry, keep reading and find out how get out of the revolving credit card interest.
See our index below:
- What is revolving interest;
- How to get out of revolving interest;
- Conclusion.
What is revolving interest?
Revolving interest is the rate charged on the revolving credit, a type of credit card interest.
When the customer does not pay the credit card bill by the due date, they can choose to pay in installments.
Then, he makes the payment of the minimum amount and the rest will be financed by revolving credit. Therefore, the interest on the revolving credit is just the interest on the revolving credit. This interest is charged on the amount that the customer was unable to pay.
According to the data from Bacen, in 2021 the revolving interest reached 350% per year, which is frightening.
Revolving credit is a type of emergency credit, so it is only requested in emergencies, when the person no longer has anywhere else to turn or how to avoid it, unfortunately.
Therefore, it is essential that there are measures to prevent, that is, not to fall into the revolving interest.
The best or main way to prevent this from happening is to have total control over your expenses and financial planning.
However, we are talking to a person who possibly already fell into revolving credit, so if this is your case, see below how get out of the revolving credit card interest.
How to get out of credit card revolving interest?
Since revolving interest rates are high, what seemed to be the solution could become an even bigger problem.
Therefore, it is important to leave as soon as possible!
If you are unable to pay the installments with the additions, one solution is to exchange the debt for one with lower interest and installments.
Ok, but how do I do this?
Applying for a loan! With the loan amount you pay the total amount you owe on your credit card and only pay the loan installments.
See below some options that can be requested and help you get out of the revolving credit card interest.
#Credited credit
Payroll loans stand out for having one of the lowest interest rates on the market, therefore, it is a great suggestion for those who need to exchange a larger debt for a smaller one.
In this case, interest rates range from 1.29% to 2.21% per month. The installments of this credit are discounted directly from the applicant's salary or pension, and can also be requested by those with bad credit.
However, this credit only serves a specific group, namely:
- INSS retirees and pensioners;
- Public servants.
Some private institutions also offer this type of loan to employees in an agreement with the bank, but it is not easy to find companies that do this.
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#Personal loan
The second option is a personal loan, although it has higher interest rates than a payroll loan, it is still lower than the interest rates on a revolving loan, for sure.
In this case, interest varies between 4.99% per month, it is possible to find higher and lower percentages depending on the institution, but this is the average.
Anyone can apply for a personal loan, but it is a little more difficult to get approved than a payroll loan.
The relationship the customer has with the bank and their financial profile can make the interest rates, ease of approval and payment conditions different.
#Special check
The special check is also an emergency credit, the one to use on special occasions, when we are in trouble.
Revolving credit is also a good option, but the difference is that it has higher interest rates, so it can also be replaced by a special check.
Although it has lower interest rates, they are not that low, ranging from 6.50% per month. Therefore, it is important to evaluate this option and see if you will be able to pay the installments for it as well.
#Negotiation with the credit issuer
The last option for get out of credit card revolving interest is by contacting your card issuer and trying to get better terms for paying off the debt.
However, you risk losing the credit limit available at the institution.
Conclusion
Well, regardless of the method you choose to pay off this debt, you need to have a financial plan and organize your finances.
Otherwise, you won't be able to pay off the debt or your budget will be affected in some area.
Having control over your spending is essential to avoid this type of trap, because once you're in it, getting out will be difficult, but not impossible.
Finally, you might like to find out ” What is revolving credit? See 5 tips to get out of this trap!”
