Payroll Credit or Personal Payday Loan? Learn to choose the best

If a loan proposal arrives at your door, it is important that you determine if it suits you.

Is it payroll credit or personal payday loan? Learn to choose the best

Is it payroll credit or personal payday loan? Learn to choose the best

These types of offers appear when you are in economic trouble; However, you should think with a cool head before accepting.

In the current market there is a wide variety of payroll and personal payday loan offers, and not comparing them can be very expensive, because according to the National Commission for the Protection Financial Services Users the rates can Go from 24 to 300 percent.

According to figures from the National Banking Commission at the end of April this year, the bank has placed 11.6 million personal payday loans, representing a growth of 145 percent in the last four years. The total portfolio amounts to 158 billion pesos and corresponds to 19 percent of the total consumer portfolio.

In the case of payroll credit

payroll credit

Growth has been 43 percent since 2011, to have almost 5 million loans placed in April and a portfolio of just over 175 billion pesos, representing 24 percent. percent of the total consumption portfolio.

Given the increase in both products, the Credit Company was given the task of generating a tool that could help the user to compare the credit offered with others in the market, and know how much of his income would be used to pay it. This is how he created the Personal and Payroll Simulator. 

How to use it?

money

You will find several options to compare: for the amount of the credit from the payment you can make, for the lowest interest rates, for the lowest payment, for the institution where you pay less at the end of the entire credit, among others .

Once you have selected any of the options, you must enter some information: your monthly income, how often you can make the payments, and how much you think those payments could be. In this way the tool will offer you the options that are in the range according to the data entered. It will also tell you the percentage that you will have to allocate for the payment of that debt.

It is important that you remember that acquiring new debts compromises your income. If you don’t know your ability to pay, you could easily borrow more.

So before you say yes to your credit, know if you can pay it and how good it is giving you compared to similar loans. Now you have tools that help you know it easily, take advantage of them.