Is the special check bad or good? Is it worth using it?
Oh Special check It can provide financial relief when an emergency arises, but it is one of the largest villains in many Brazilian financial health. With an unprecedented and automatically available credit, it guarantees that the forces will quickly resolve the conditions that are not affected, but its abuse can cause high interest rates and a difficult cycle to break. For those who want to understand whether the special check is worthwhile, it is important to assess the benefits and most importantly, the risks.
What is a special check and how does it work?
Special check is an automatic line of credit, which banks offer their customers, usually without the need for formalities or guarantees. When the current account balance reaches zero, the customer can use this pre -approved credit to bear expenses, with the financial institution determined. It can be accessed at any time and without bureaucracy, which makes it a quick choice for those who need money in an emergency way.
However, the ease of overdraft is the price. The interest charged by this type of credit can reach up to 8% per month, which makes the loan invaluable if not paid quickly.
Benefits of overdraft
The main advantage of overdraft is the speed of credit available. There is no need for pre -approval or income proof, which can be a practical solution for those facing an economic emergency, such as paying an emergency account or for the forthcoming event. In some cases, if the amount used is paid up to 10th day, the bank will not charge interest on this amount.
Disadvantages and disadvantages of special check
Despite some benefits, overdraft is dangerous when used without planning. High interest is the greatest disadvantage of this type of credit. They charge every day, which can increase the debt rapidly and make a small loan into snowball.
The constant use of overdraft produces the false sense of “additional income”, leading to the consumer in the monthly budget, which compromises the economic balance. This behavior creates a wicked cycle, where the person ends in use uncontrollable and unable to pay, and enters into a difficult debt process.
In addition, the long -term use of overdraft can seriously affect the financial plan. By not paying the debt by the time, the client reveals that he is defaulting his higher interest rates and accidents, which weakens his credit history.
Strategies that do not come into overdraft
Although overdraft is useful in emergency times, it should not be used as a recurring solution. To avoid falling into this type of credit, It is essential to adopt certain strategies such as the creation of the emergency reserve.
One of the best ways to protect yourself from using overdraft to have the amount reserved for incidents that are not financially forthcoming. This fund is sufficient to bear the basic costs of three to six months, ensuring that you have resources in case of urgent need, without resorting to bank credit.
Another important thing is personal budget control. There is no risk of entering the overdraft due to maintaining a clear view of your financial matters, following your income and expenses and lack of planning.
Is it worth using a special check?
Overdraft is a useful tool, but carefully and use Only in emergencies. When used in a controlled manner and with a clear plan to quickly leave the loan, it can help solve the problem of time spirit. However, it is not recommended to use overdraft as a constant credit source due to high interest rates and ofterity. Ideally, whenever possible, you will look for cheap and stable alternatives to deal with your economy.
