Among the personal credit lines, there is a credit called payroll personal loan . It is one of the cheapest credit terms available today. Many personal finance sites and blogs feature payroll loans as the best option for transferring your debt. But is he that advantageous? If it were so advantageous, why can’t everyone hire you? barsugliafarms.com has more details
Another factor that attracts many consumers is the fact that payroll loans are discounted directly from their pay stub. But some precautions are essential before opting for this type of loan and we will cite here the main items for you to keep an eye on.
Payroll Loan Care
Payroll-deductible credit care should be taken from hiring to repayment. Let’s talk about each of the attention items separately.
Did you know that payroll loan interest for retirees and pensioners has a ceiling? Yes! And it is possible to check the value through the IFSS website . This amount, however, is only related to the loan of those who have a public payroll loan. Private payrolls may have other rules.
Otherwise, according to the Ordinance, the maximum limit of income commitment in payroll should not exceed 1.4 times the amount of monthly income of social security benefit.
In the case of private payroll, in addition to not having the limitation of interest as there is for public payroll, there are other different rules. In this modality, only the income commitment limit is foreseen, which should not exceed 30%.
It is worth remembering that the private payroll loan does not have the same advantages as that made by retirees and pensioners, because in the private sector there are less guarantees of income maintenance. This makes interest rates higher and the only benefit would be the direct payroll discount, but you have to be careful with this option.
Direct Payroll Discount
Payroll loans are deducted directly from your payroll. Your salary will not be the same until you fully repay the debt. Remember, the higher the installment the lower your salary will be the longer. So plan well before setting the amount of installments.
If you take out a private payroll loan and get fired, you need to go to the financial institution before you can settle the outstanding installments. It is worth remembering, however, that in case of renegotiation higher interest may be charged, as the consumer will no longer have a payroll-deductible contract.
Only registered institutions
Payroll-deductible loans are very restricted in practice, mainly serving civil servants, retirees and pensioners. If you work in a private company, your company must have a relationship with the bank to enable you to contract payroll loans.
Aside from the need to look for specific institutions, it is usually necessary that the payroll loan is contracted directly from the bank, which makes it easier for us to be able to contract with intenet. In addition, telephone hiring is not allowed.
The installment payment of payroll loans can be made up to 72 times, and it is not possible to exceed this amount of installments. However, some institutions may do so in fewer times.
Be aware that there can be no charge for TAC (Credit Opening Fee) in payroll. Only IOF (Tax on Financial Transactions) may be charged on loan installments.
The income commitment limit with payroll is equivalent to one third of your income, and that means a high amount. Stay tuned before you commit. Also, make sure you really need this credit. Sometimes a simple expense review can make you waive credit.
Remember that the loan portion will come directly discounted from your pay stub, which will make the amount that goes into your account smaller. You must be prepared to deal with this new value in the account. Make sure you can keep your basic needs and bills up to date.
Finally, avoid making new debts while paying off your payroll loan. Ideally, keep as little financial commitment as possible and keep your financial health better and better. The intention is to finish repaying the loan without having other unpaid debts.