You are in debt and you are not sure what to do. You’ve already tried several different solutions, but you always find yourself at the same dead end. The only thing you have are some goods for attachment, like some jewelry, or even a car. Is it worth to pawn such items, ie leave them as collateral to repay a loan with the bank, to solve your problem?
With the great supply of credit and the good conditions, especially in the public banks, the attachment has been left aside. Even so, it is a modality of loan with very low interest, given the low risk related to this modality of financial loan.
What exactly happens in the pledge? An item that you have is appraised by the bank that gives you a corresponding loan, usually at an amount equivalent to or slightly less than the item’s worth (up to 85% of the value of the item can be converted into a loan). The item will work as collateral if you do not repay the loan. It will be owned by the bank if you do not take out your debt.
For those who earn less than R $ 3,000.00, interest rates are around 1.7%, with a loan limit of R $ 1,000.00. It is lower rate, quite significant, not good for civil servants, as they pay equivalent or even lower fees in public banks. For direct loans, interest still spends between 3% and 5%.
But just going to pawn your item does not help. Such a loan needs financial planning for payment. The main way is to see if the loan will be sufficient to pay off all your debt or write off a good portion of them. Your salary should be able to repay the installments of the loan and repay the pre-existing debt in amortized installments. Ideally, this “loan” should be able to convert the portions of the previous debt together with the debt of the current loan into a corresponding amount between 10% and 15% of their salary. More than that, the pledge is not worth it.
If after you do this financial analysis, and the lien is really worth it, take your assets to the bank along with a CPF, ID and proof of residence. The term of the pledge varies from 1 to 180 days, and we recommend the lowest possible amount to pay less interest.
And next time, take care of your finances so you do not have to pawn your assets. They may have a very good financial value, but the sentimental value of most of them has no price to pay.