Profitable 'Financial Tips' During Interest Rate Hikes... Provided by the Financial Supervisory Service

[Asia Economy Reporter Song Seung-seop] The Financial Supervisory Service (FSS) disclosed on the 18th “financial tips” that consumers can beneficially utilize during the period of interest rate hikes.

The tips are broadly divided into four categories: information for vulnerable borrowers in urgent need of funds, information helpful to general financial consumers, practices to be consistently followed, and methods to distinguish fraud. There are a total of 12 detailed points.

The FSS advised that vulnerable borrowers, such as those with low credit or low income, should actively use policy financial loans provided to them and debt adjustment support programs offered by individual financial companies. Additionally, if one must cancel insurance to raise urgent funds, it suggested using insurance policy loans to borrow 50-95% of the principal. If facing the risk of delinquency, paying at least some interest is advantageous for credit management.

For general financial consumers, the FSS recommended using financial systems such as the right to request an interest rate reduction and the “interest rate cap type mortgage loan special contract.” The right to request an interest rate reduction is a system where consumers can ask banks to lower interest rates when their income, credit, or financial status improves, and the interest rate cap mortgage loan is a product where the interest rate does not rise beyond a certain level. Consumers can select favorable products through the “Financial Products at a Glance” service and should carefully review vulnerable borrower support programs offered by each bank.

Furthermore, the FSS added that consumers should be cautious about revolving credit card payments. Since high fees are charged, if full repayment is difficult, it is better to reduce financial costs by using medium-interest loans. Also, consumers should strive to manage their personal credit scores and avoid falling victim to voice phishing disguised as low-interest loans by not clicking on suspicious links.

This content was produced with the assistance of AI translation services.