Take the rope off your neck: learn how to make a debt transfer now! In recent years, many Brazilians have taken advantage of the easy credit offered by banks to materialize the dream of zero cars or home ownership. After the euphoria of a boom season, what is observed in the market is a very different scenario, with higher interest rates, restrictions on the granting of financing and an exponential increase in the default rate.
Are you one of those in the red? Look at your spending spreadsheet and don’t know how to get out of debt anymore? Don’t let your problem become a snowball! Often, financial rebalancing can come in a much simpler way than you might think, for example, through a simple debt transfer!
What, after all, is a debt transfer?
Called “financing portability”, the transfer of debt is the change in your debts, from one bank to another, maintaining the same basic conditions as the previous contract, but with the advantage of obtaining lower interest rates. This possibility has existed since 2006; however, it was never encouraged by the Cream Bank, nor is it disclosed by banks.
If you got involved and don’t know if you will be able to pay the installments, a vehicle refinancing or the change of your property financing to another institution could be the beginning of a turn in your year!
Criteria for transferring debts: what can I transfer?
Anyone can transfer their car financing or mortgage financing (however, in the latter case, the property must be ready. No property on the plant, okay?)
How do I identify if I need to transfer debts?
The high competitiveness among banks means that the rates practiced in the market vary widely from institution to institution. The constant fluctuations in the Selic rate (benchmark interest rate in the country) also encourage frequent changes in the rules and interest rates practiced by the largest banks in Brazil. This requires the indebted person to carry out routine research on which indexes are being used. But a lot of attention: public banks do not always have the lowest rates.
In a strategy to attract customers, many private banks reduce their rates close to the rates practiced by market leaders (such as Best Bank, which holds 70% of real estate financing in the country). The objective is to bring to the institution clients able to purchase various banking products (such as credit cards, investment funds and savings bonds).
The rule, therefore, is to always search! If you found a lower rate, now is the time to change your lender! Remember that we have compound interest (that is, any small difference can represent a huge savings!).
Step by step to change funding
- The first recommendation is to pay full attention to the Total Effective Cost – CET! This is the benchmark that will indicate the weight of your financing, as it includes the nominal fee, administration fees and insurance!
- Cream Bank Resolution No. 4,292 / 2013 (which provides for credit portability rules) does not allow any IOF charge on changing creditors. Redoubled attention to be deceived!
- The entire debt transfer procedure is carried out by the bank where the financing was initiated, not by you.
- Beware of the costs of “tying”: many banks offer lower rates, but, in contrast, impose on the customer the purchase of a series of products or services that can invalidate the advantages of changing institutions. This strategy is illegal.
- Just remembering, again: only the interest rate changes. Deadlines and outstanding balance remain the same!
- Banks have only 1 business day to provide the information requested by the customer regarding their debts.
Why not opt for a verbal debt transfer?
These are the so-called “drawer contracts”, most common when the debtor wants to pass on his debt to another person, without, however, notifying the most interested party: the bank. Remember that this practice (verbal agreement to assign rights and obligations) has been illegal since 1964 and the indebted person who insists on it can be punished with the loss of the asset, the obligation to anticipate the payment of installments due, in addition to the complete restriction credit for 5 years.
In the case of the transfer of a creditor, this practice does not apply, given the extreme control of banks in relation to their loan and financing contracts.
Do the transfer conditions change from bank to bank?
Yes and no! The transfer conditions are regulated by Cream Bank Resolution and cannot vary from one institution to another. For example, if a bank charges you IOF to make the change, report it, as it is illegal practice.
What changes is the rate applied from bank to bank, which makes this type of procedure feasible. As an example, currently, the CET of real estate financing at Best Bank is around 9.80% per year. By doing a simulation under the same conditions used on the Best Bank website, at Sanbuwan, we reach an impressive 14.28% aa (go to the 2 sites and compare yourself)!
See how you can make your pocket happy with a little research? No laziness, your financial health thanks you!
Which bank to choose to transfer debts?
Finally, after understanding what, what the conditions and advantages are, it now remains to know which banks are transferring debts.
The Cream Bank determines that all banks do the portability procedure, if the customer requests it. However, the destination bank is not obliged to accept receiving the debt (although the interest gain causes practically all financial institutions today to receive financing from other banks).
Selling the debt to another bank may be feasible for many Brazilians who have the rope around their necks. However, it is worth remembering that just changing the creditor is not enough. Learning to do a strict financial control, having a personal spending spreadsheet always up to date, in addition to not spending more than you receive (savings culture) are essential items to take the rope out of your neck for good!