Despite the fact that during the first quarter of this year the request for credits by Colombians decreased compared to the previous year due to high inflation, the high rates of usury have made more and more people resort to payroll credits to meet your financial needs.
Financial education, the key
However, ignorance and lack of financial education generate over-indebtedness and economic problems. According to the most recent report of TransUniondelinquency continues to deteriorate due to the fact that Colombians exceed the delinquency time, which is from 30 to 59 days for the payment of installments or interest on their debts.
For this reason, Bayport Colombia, a leading company in the payroll sector in the country, has shared a series of recommendations to have a good management of personal finances when taking a payroll credit:
Understand the terms and conditions of the credit, and, in turn, the impact that this can have on your finances in the long term, taking into account that payroll credits have terms of up to 144 months and people who do not have knowledge of your ability to pay end with an increase in their debts and a decrease in their financial capacity. When choosing the portfolio purchase option with low rates and terms due to a financial emergency, consider the payment term. In the longer term, your initial economic situation may worsen if it is not managed correctly. When obtaining a payroll credit, do not use the money for purchases that are not necessary, such as appliances, clothing and accessories. This type of consumption is recommended to be done in cash. The safest investment you could make when taking this type of payroll credit is to pay your credit cards in full, since traditional banking interest rates are the highest in almost 30 years. If you have a business idea or want to start a business and do not have the necessary resources, you can use this type of credit as working capital, since it is free investment, it allows you to allocate it to what you consider most important. Do not be late with the payment of your credit installments to avoid falling into default and exposing yourself to penalties and future credit problems.