Credit cards are the financial mechanism that we use most in Argentina to take credits. The Central Debtors of the Financial System reports that 30% of personal liabilities in Argentina is the product of card transactions.
It is very common that in Argentina many of the citizens who use credit cards as the main method of payment cannot pay the total monthly fee. Many times this occurs due to poor planning in the domestic economy.
The domestic economy has to be controlled very rigorously, an unforeseen event can upset our entire budget, especially if we have large families with several children, since the expenses can be multiplied by two, by three or more. To prevent this, we recommend that you work every month to build a family budget. Families can and should also make family budgets to control the economy and ensure positive development.
Use a credit card loan or take out a quick loan:
The contingencies generate expenses that we did not take into account. If you came to this case, there are different alternatives that you can take, you might be wondering if you should use the credit card or take out a quick loan.
Both credit cards and fast loans are often used to pay an expense that cannot be made immediately. Credit cards are used to make purchases of products on a daily basis, while loans are used to pay for unforeseen expenses. Of course, there are several types of loans, there are differences between short-term loans and card loans, it is important to inform yourself and confirm the best option for our case.
Different alternatives to face debt payments:
In the case of being in an emergency economic situation, there are several alternatives to find the best solution to the problem:
- The first would be to make the minimum payment of the credit card until such time as we can fully pay the debt.
- The second possibility is to request a personal loan to pay the total balance of the card at one time with the money we obtain.
Ask for a loan to the card to which money is owed, yes or no?
There is no right and wrong answer to this question, it will depend a lot on each case. On many occasions, the same institution to which money is owed has the option of granting personal loans to its clients. These loans can be requested by each client in order to pay the amount due. The benefit is that you can get a loan with lower interest and a longer period for cancellation.
Keep in mind that the entity to which the money is owed will be interested in finding a solution that serves both parties. For this reason, he will try to make things easy for the client so that we can access the requested loan.
We recommend that you check with your particular card since not all companies have this option enabled. Usually, cards that are backed by banks with a local presence offer this possibility. For example, the Visa and Master cards of ICBC, American Express of Sanbuwan Rio, Goodmen Card, among other credit cards.
It is important that we clarify that the characteristics of the loans will be personal and depend on the offer made by the institution for each particular case.
Personal loans to settle the credit card debt
Many people ask if it is convenient to ask for a personal loan to settle the debt with the credit card, this, again, depends a lot on each particular situation.
The option of requesting a personal loan to cancel what is owed is one of the most used. By doing this, the debt will be canceled in a single payment replacing the debt with a cheaper one.
There is the possibility of accessing loans at lower rates and with longer terms, this helps us minimize the percentage of the monthly family budget that will be used to pay the new debt compared to the initial debt that was had with the card.
We want to highlight that although the market has experienced an increase in the percentages that apply to financing costs for most of the available tools, these costs will be considerably lower for loans requested by people than for cards credit, this means that ultimately, it will be convenient to take out a personal loan and not opt for the minimum payment on the card.
It is very important to clarify that all available alternatives will be subject to credit approval of each particular bank. Therefore, we recommend that you consult with each entity about your particular situation to see if you are or are not eligible to apply for and receive a loan, and if you are, under what conditions.
We have concluded that in most cases it is better to take out a personal loan instead of paying the minimum credit card. This is largely due to the high default interest charged by the cards. Because of this, the financial cost is usually so high that it can take us years to cancel the debt.
Finally, what we suggest is that if you decide to access a loan, you take the time and work to read the conditions of the loan very carefully to ensure that this method does not end up being more expensive than the second option of paying the minimum established for the card.