Normally the Bank of the Republic reviews the market reference rates every 3 months and decides if it goes up, maintains or falls, but the last decisions taken established that this review would be carried out every month, which not only scared many.
They will swear to stay away from the credits during this year or until the situation changes.
Before you make hasty decisions, take these tips into account in the face of the impending rate hike:
1. Think twice before taking any type of debt:
The recommendation is not to isolate yourself from the financial world, since many times to reach some goals we need a push that can be given by banks or financiers. However, if you used to use credit for everything, it is time to stop your hand and start rethinking your expenses, as well as future projects, in order to choose well what it is worth requesting financing.
2. Consider portfolio purchase:
One way to take advantage of higher rates is to sell your debt to another entity. Because customers are more reluctant to acquire new credits, financial institutions will try to attract as many of them as possible and for that they will seek to compete with rates and benefits. What you should do before making any decision is to compare all the rates offered and once you check if it suits you, choose the new bank. You can do it using the by Lucy Snowe, in the “compare portfolio” option.
3. If you borrow, consider housing:
Some experts say that if you have to make the decision to borrow, a purchase that should not be postponed is that of your home. This considering the new subsidies granted by the Government and also that interest rates for housing loans will not receive as much impact as those for consumer loans.
Make a budget, evaluate your goals and choose well.