Consigned CLT: How FGTS Can Impact Your Finances

What's happening?

According to G1, the Brazilian government has regulated the use of FGTS as collateral for consigned credit, allowing workers with formal employment to use up to 10% of their FGTS balance and 100% of the severance fine in case of unjustified dismissal. The new loans will have interest rates capped at 1.99% per month, a very attractive rate compared to other credit options in the market.

This change promises to facilitate access to credit for millions of workers but also raises concerns about the use of FGTS, which is an important financial reserve.

Why does it matter?

The credit scenario in Brazil is changing. The regulation of CLT consigned credit may be a good alternative for those in need of cash, but it is crucial to understand the risks involved. With around R$ 130 billion already made available in loans through this modality, the expectation is that more workers will gain access to cheaper financing with less bureaucracy.

However, caution is essential. Using FGTS as collateral means that in the event of dismissal, the bank can retain these funds, which can put you in a complicated situation without proper planning.

Practical impact on your finances

Let's say you earn R$ 3,000 per month. With the new rule, you can commit up to 35% of your net income to loans, which would amount to R$ 1,050. If you decide to use FGTS as collateral and take a R$ 1,000 loan with interest of 1.99% per month, your installment would be around R$ 147.87. This is much lower than credit card rates, but you need to assess if you really need that money.

If you already have debts or a low emergency reserve, it may be better to avoid this option. Ideally, your budget should follow the 50/30/20 rule: 50% for needs, 30% for wants, and 20% for savings and investments. If you use FGTS as collateral, you may compromise that reserve and, in the event of dismissal, be left without a safety net.

What to do?

• Research: Use the Digital Work Card to compare offers from different banks. The competition should help you secure better terms.
• Analyze your needs: Ask yourself if you really need that loan. It can help now, but it may compromise your financial future.
• Plan your exit: If you decide to use FGTS as collateral, have a plan for dealing with the debt in case you lose your job.

Remember, the use of FGTS as collateral is optional, and you should be fully aware of the implications.

Connecting with your financial organization

ADXIS can help you get organized financially, ensuring that you make conscious choices. Before considering a loan, it's essential to review your budget and financial planning. Using FGTS as collateral can be advantageous, but you need to be sure it won't compromise your financial security in the future.