There are already many banks and institutions offering their clients anticipation of the 13th salary and income tax refund . The fact is, I need the consumer to keep in mind that this is a type of loan and it will pay interest. Also, keep in mind the possibility of not receiving the expected money.
How 13th Salary Advance Loan Works
The amount for the thirteenth salary only falls into the CLT work account at the end of the year, but it is possible that you already have debts knocking on your door, right? This may cause you to be tempted to take an advance loan of this amount.
The same goes for anyone who has filed the income tax return and has something to receive. Banks often offer clients the possibility of anticipating the amount, but interest rates may be higher than other types of credit .
What to consider
Of course the list can be very long, but before really considering hiring the 13th salary advance, some basic factors need to be assessed:
- Do you have a more expensive debt?
- Have you evaluated other types of credit?
- Did you compare the CET offered by the bank and that of other institutions?
- Need the upfront cash to supply an emergency?
- Are you able to honor the loan repayment so as not to be negative when it is charged?
- If you don’t have the money now, can you get a penalty, even if it’s not in interest?
In addition to the above points, you need to understand the loan, be it advance or other type of credit. Being aware of the interest rate you are paying and the Total Effective Cost, knowing if the installments fit your budget, and knowing the total amount you are paying for the money taken are information that helps in decision making.
As a summary it should be considered that who has a more expensive debt can avail this loan to pay less interest. But never hire without comparing with other credit offers in the market. Also, there are cases where not having the advance money can cause you non-material damage. Examples are: registration for a course which may be lost without payment at this time; investing in something relevant to your business and urgent; primary bills that are unpaid (eg energy, water, etc.). For each situation you need to have an assessment.
Beware of anticipations!
Remember, when you apply for an advance you are considering money that may come but is not yet fully guaranteed. If you take a 13th salary advance loan and get fired, you may not have the full amount at the time it is charged. In addition, in the case of income tax, it is possible that the refund is lower than expected or even unpaid. The consumer has to be aware of these risks before hiring the anticipation.
What I need to know most about anticipating 13th salary
- The anticipation means the possibility of receiving immediately the 13th salary paying interest for it.
- The advance amount varies according to bank policy. Generally 80% of the salary amount is offered. Still it is possible to find institutions that anticipate up to 100%.
- Anticipation is a loan. When charged, the bank will have a higher value than the anticipated.
- Even if your 13th is not paid, for some reason, the bank will debit the amount on the date defined in the contract.