Have you met with the statement that the only advantage of the payday is the speed with which it is granted? It is hard to disagree with this claim but is it the ONLY advantage of choosing this form of financing? Below, we explain what a payday is and what are its advantages and disadvantages.
A momentary is an express cash loan or an account granted for a short period of time. Although the offers for on-line discounts are predominant, people who prefer cash or who do not have access to a bank account also have a choice of quick cash loans (also home loans). Usually, the borrower has 30-60 days to return the entire amount, and the amount of the payday does not exceed PLN 2-3 thousand, because probably more money would be difficult to repay for the average Pole one time. If you need more cash, you can better use the installment loan. Who makes use of payday loans? Usually, service users interested in spending a short time opt for such a solution because of urgent expenses that outweigh the savings.
If we need a source of external financing immediately, first of all, we need to clearly define what amount is needed and in what period of time we will be able to repay it. Both underestimation and overestimation is unfavorable to us, because either the target will turn out to be unattainable even after obtaining the loan or the surplus of the payday will be wasted on unnecessary whims, and the debt will remain. However, rational determination of the amount of the loan makes it difficult to take in the circumstances, ie the pressure of time and decision making under the influence of emotions. To safely borrow you always have to remember that even easily obtained money will have to be returned to avoid unpleasant consequences, so it is better to calmly calculate the budget and maybe instead of taking a short break to decide on an installment loan?
The second step should be choosing the best offer. A loan comparison engine will be helpful, which brings together the conditions proposed by various financial institutions and gives the chance to set parameters such as: minimum and maximum loan amount, time to repay, interest rate, commission and sometimes additional costs.
An alternative is to ask a financial advisor who will advise you in which bank or financial institution it pays to take out a loan. Of course, we can also use the recommendations of trusted friends and family, if they are familiar with this topic. It is important that the analysis is carried out carefully, which will allow to exclude unprofitable proposals.
After choosing a specific offer, just in case you need to check the opinion of the lender and assess its credibility. A lot of information, such as, for example: entry in the company register, address data and authentic opinions can be found on the internet, or you can ask your friends. This is another step towards deciding on safe loans.
It would seem that everyone already knows that contracts must be read, and especially those concerning finances. However, it is still not so obvious in practice. Therefore, we would like to remind you that before signing the contract it is necessary to verify the content of the paragraphs, more precisely: the loan amount, the total amount to be repaid, costs and commissions and criminal interest that will be charged in the event of delayed settlement, repayment date and account number if it is a transfer . In general, a contract for a payday or a loan is a very detailed contract and it is best to analyze it in its entirety to avoid surprises, hidden costs and other tricky actions of loan companies. The ethics of operation of a given loan institution is indicated in the Register of Loan Companies. Often included in the company register, they have well-structured loan agreements and provide financial advisory services.
The costs of using the payday are very different. Borrowing a thousand zlotys a month may cost several dozen zlotys or nothing. Free payday is a promotion that usually applies to new customers who have met all terms, including a timely settled commitment. Therefore, it is worth taking the time to save on costs.
Why do you have to be so careful?
Well, unfortunately unethical behaviors happen in every industry, so in financial terms too. In addition, we can overestimate our financial capabilities, because often the verification of borrowing capacity in the case of payday loans is very cursory and it is better to determine ourselves whether we can afford repayment of installments. Another issue is known cases of fraudsters who, under the name of a financial institution, have scammed personal data and used it for their own purposes. Of course, such cases constitute a margin but it is better to be wary.