Learn to manage your finances in a clear and transparent way – Prensa Libre

Bam presents you in a simple, practical and transparent way the definitions that will help you better understand your product and differentiate when you need to purchase others. Also to understand when you need to make an investment order your finances or simply for your knowledge.

Do you know the difference between loan and credit?

They look the same, but they are not. Know the definitions of these words and some relevant information.

  1. Loan: It is a product in which the bank will grant you money based on a percentage of the total value of something that you will buy specifically.
  2. Credit: It is a product in which the bank will pay you money and you can use it for whatever you want.

Main differences:

  1. Loans
  • There is a guarantee involved, whether it is a person, who is your guarantor or a property, such as a property.
  • You can make capital payments to pay off the debt early.
  1. Credits
  • The processing process is faster and without a guarantee.
  • The rate is higher.
  • It is not possible to make capital payments.

In both products take into account what you are paying. So when you see your account statement, you will better understand how your charges are broken down.

  • Capital: what the bank lent you.
  • Interest: what you pay the bank for the service of having lent you the money.
  • Life insurance: fee you pay to cover your debt and other services in the event of an unexpected event.
  • Unemployment insurance: fee that will help you cover the payment of your credit in case you lose your job.
  • Others: there are costs to consider even when your financing is approved.
  • Legal expenses
  • Deed expenses
  • Disbursement commission

Additional loan data

There are two types of fees:

  1. Leveled: every month you pay the same amount of money.
  2. Decreasing: your fees decrease as you pay.
  • Confirm if your financing has a prepayment penalty and if you can make capital payments.

And now how do you manage your debts?

Here are some tips:

  • Order your payment dates and schedule them. This way you will avoid increases in the interest rate, arrears and penalties for late payments.
  • Take care of your credit record. Pay within the range of the established dates.
  • Have virtual banking. It will help you make your payments more easily.
  • Do you have several debts? Consolidating them will save you time and simplify administration because you will have a single monthly payment.
  • If you consolidate debts, consider that the financing is for a longer term, so the installments will be much more comfortable.
  • When you acquire financing, Make sure the payment date is close to the date you receive your monthly income, so you will have cash to fulfill your commitment to the bank.
  • If you find yourself in a difficult situation, ask your bank for advice. Bam is interested in your peace of mind and they are willing to give you different options so that you can achieve it.

Find more important information at https://www.bam.com.gt/.