It is difficult to act in consumer protection without periodically warning people to avoid revolving credit cards. We have an obligation to remember, frequently, the risks of ‘financing’ purchases with this credit that is less bureaucratic, but has astronomical rates, which often push customers into over-indebtedness. Last August, revolving rates reached an unbelievable 398% per year. Literally, abusive interest, which, depending on the situation, can even constitute a crime against the consumer.
It is easy and practical to swipe the card for purchases, but it is difficult to control this future expense in relation to the monthly income. And this can lead us to revolving, if expenses are much higher than the ability to pay.
This type of credit exists for emergencies, and it may be justified in very specific and emergency cases, such as being unable to pay the full monthly payment on the credit card due to illness, unemployment, delay in receiving a salary or other form of remuneration. Even so, the suggestion is to exchange this debt for another with much lower interest, such as a payroll loan (in this case it is worth it) or direct consumer credit (CDC).
One can also resort to extreme measures, such as selling a good. But there is a vaccine against the need to use the revolving system and get into debt, and I talk about it often: budgeting and following it strictly. As difficult as it is to survive with low Brazilian wages, no one can spend more than they receive, except, perhaps, the governments, which roll their debts with our money, collected in the form of taxes, fees and contributions.
Equating monthly income and expenses is equivalent to avoiding the disease, which is far better than having to treat it with drugs and other procedures.
Also, be wary of the ease of getting loans. Money is very expensive, precisely because interest rates are so high. So, if they do not require proof of income to access credit, it means that you will pay above market interest.
So, how about buying your peace and that of your family, not spending when you can’t pay the bill at the end of the month?
Chad-98Weaver, a distinguished author at NewsBulletin247, excels in the craft of article writing. With a keen eye for detail and a penchant for storytelling, Chad delivers informative and engaging content that resonates with readers across various subjects. His contributions are a testament to his dedication and expertise in the field of journalism.
