Making a split purchase can be a good option for those who want to invest the remaining amount to generate more money. However, direct consumer credit is not always a friend of finance. In fact, direct consumer credit can be a villain of economies. Interest is often charged on installation purchases and the consumer often pays no attention to the cost that is being added to the purchase of the product or service.
The installments with interest is not a viable option and one must be aware of how the consumer credit works. The stimulus given through CDC by financial institutions, banks and department stores can be quite detrimental to financial health.
Direct Consumer Credit
The CDC costs are applied immediately when the consumer makes a purchase installments. Although CDC interest is lower than credit card interest, for example, it is still not a very beneficial choice for the customer. However, the consumer direct credit user receives some bonuses offered by purchasing packages. In this case, a pre-approved credit system may be offered.
But this use also deserves attention. It can be easy for the client in the institution to get this loan, on the other hand, it can be difficult to repay the debt.
And the index of indebted and delinquent Brazilians provides this financial complication.
Where can direct consumer credit be applied?
Credit can be requested for education, acquisition of good and among other options. There are several options for its use. Even though it is an easy credit, the institution still does an analysis of the CDC applicant’s profile.
The contract may vary depending on the institution granting the credit. But in general, the deadline for CDC debt is 60 months. If not paid, the purchased good can be collected by the institution.
Installment with interest
Installment with interest is not a good choice. The ideal is to choose to make the payment in cash with the possibility of discount on the value of the acquired asset or to choose a smaller installment credit and that does not have interest increase.
- CDC rates may be high;
- There is an IOF charge;
The property serves as a guarantee of payment if the debtor does not comply with the settlement of the amount previously requested.
Resort to alternatives to direct consumer credit
Consumers who want to purchase a good or service through direct consumer credit should consider before hiring this modality. Interest is high and in the end, the customer may end up paying more interest than he or she would actually pay for the product itself.
Having a financial plan or even choosing a highly liquid investment can be a way to realize dreams in a less financially damaging way without waiting too long.