Benefits of paying off a loan early

 

 

Maybe a few months ago you went through a crisis, an emergency that you had to face yes or yes, for which you found yourself in the need to california payday loans, one of those that give you quick money, although they do go through with the rate of interest. But you didn't hesitate to ask for it, especially if you were on fire! And now?

Maybe a couple of months later, you see from a distance that the fire has dissipated; better yet, you have received extra money, either for a bonus, Christmas bonus, vacation bonus or savings account; and you could even completely liquidate that commitment from the past.

 

How to end a debt?

 

 

Surely the money in your hands will tempt you to use it for something else; But the benefits of using it to completely pay off an already acquired debt are better:

·         You will end up paying less interest.

·         Your payment capacity will be free again and you can use that capital in other things.

• You will leave a good impression on the Bureau and Círculo de Crédito.
• Being a "  payday loans no credit check california " will open the doors to access a new credit (mortgage, automotive).

If you plan to pay off your debt, it is essential that you know this

Check your contract or approach your financial institution to check that there is no type of penalty if you pay off the loan before; since some entities could charge you a commission of up to 3% for the amount that you still have to cover.

NOTE: they should not charge you for finishing paying your debt before, they are prohibited! Penalizing an advance payment is considered an abusive clause by the Conduce

Before, if you wanted to pay a debt in advance, you had to also cover the fee for a penalty, it was something like the applied and intelligent nerd who is punished for a compliment ... what!! An unfair thing.

Currently, after the financial reform, this type of decree is prohibited in adhesion contracts; now the Conduce considers them bad practices, because the matter becomes advantageous for financial institutions.

 

If they want to apply a fine for compliance, report it!

Go to the Condusef, they will ask the financial institution to eliminate this abusive clause. And if they refuse, they will be penalized with a fine ranging from 500 to 2,000 days of minimum wage for each claim that proceeds.

Ideally, online payday loans california compare and prefer those that do not charge you a commission or penalty for paying off the debt before or for making advance payments.

And do not forget to analyze whether or not it is convenient for you to pay off completely, some experts recommend anticipating the payment in the first stage of the credit and not at the end, since you would only be paying the interest and it is not worth it.