In times of high interest rates, you need to pay more attention to finance so as not to lose control over indebtedness or to enjoy the moment and make the money yield.
The recent rise in the dollar and the uncertainties around inflation and the global economy made the Central Bank (BC) increased interest rates in late January. The Monetary Policy Committee (Copom) raised the Selic ratebasic interest rates of the economy, in 1 percentage point, now to 13.25% per year.
To help in this scenario, Financial Educator and CEO at Ujamaatech, Dina Prates, presented a series of guidelines for people the expert tips are divided into three scenarios: people who are indebted; Unstranded people, but who are in need of resources; People who have some money left to invest.
Brasília (DF), 05/02/2025 – Dina Prates, Financial Educator and CEO at Ujamaatech. Photo: Alisson Batista/Disclosure
Agência Brasil: In the current scenario of high interest rates, what would be the recommendation for people who are indebted, mainly indebted to the credit card? What is the best way to go out or decrease debt?
Dina Prates: In this scenario of high interest rates, it is essential that people be careful when negotiating their debts. Depending on the type of debt, the amounts can increase greatly, with high installments that compromise the capacity of payment and affecting the long -term financial health and may even lead to default on other accounts.
In the case of credit card debts, it is important to avoid payment only of the monthly minimum or accept the automatic installments of the invoice. What does that mean? Often, the person pays only the minimum amount and the invoice increases considerably, as the interest rates are high and impact the new total invoice.
The best alternative is to analyze your budget well, understand what is your real payment capacity in the coming months and seek a negotiation that fits in your pocket.
To reduce the cost of interest, you can negotiate an entry to pay the invoice and install the rest. But always be aware of your financial capacity. Invoice installment may have a high cost, but entry can a little repay the costs.
Another strategy to decrease this debt is to exchange an expensive debt for a cheaper. If you have a credit card debt, it may be worth making a personal loan to pay off the invoice. Thus, you start to pay installments with lower interest rates than the card revolving.
This is not always the best alternative, but it can be a very interesting way for people who cannot have many exits or end up having a very high credit card bill, because they are already in this history of paying the amount less than the total of the total invoice.
Agência Brasil: Who is not in debt, but is in need of money, what is the best option for loan?
Dina Prates: For those in need of money, the best loan options, usually with lower interest rates, are those that have a bound guarantee. For example, civil servants, retirees or pensioners have access to credit lines with lower interest rates through payroll loans, which is discounted directly on the payroll.
Another alternative is for those who have a property or another good that can be used as a guarantee. This type of loan usually offers lower interest rates and often a faster credit release or even higher values, depending on the situation.
Now, for those who do not have guarantees or do not fit the previous profiles, there are several fintechs on the market offering different types of credit. But it is essential to be aware of interest rates.
If you don’t know if the fee is fair, you can consult the Central Bank website to compare the average interest charged by other institutions and see if the chosen option is really worth it. Always do a good research on more than one financial institution to consult interest rates and available lines.
Agência Brasil: For people with some money left: What is the best alternative for investment, to make the most of interest?
Dina Prates: For those with some money left, one of the best alternatives at the moment is to look for investments in fixed income. This is because the interest rate increases directly impacts the profitability of these investments, such as Direct Treasury, CDBs and LCIs, which tend to offer higher returns with Selic’s discharge.
But it is always important to remember: Before investing, each person should know their investor profile and understand their level of risk tolerance. Only after that is it worth taking the first steps in the investment world. Still, fixed income is a great option for those who want to see the money yield more in this high interest scenario.
If you are investing for the first time, our recommendation is to start with little and look for options that have an estimated financial return, such as fixed income options.
