The financial products market has been flooded with payday loans in recent years. If we would like to ask even among friends we can be a bit surprised. It may turn out that most opinions are unfavorable or that they do not use this type of service. This in turn is a bit contrary to how many companies have been established that provide payday loans and how well they are doing. If so many people say that payday loans are no good, how are they at the top of the list of popularity of financial products?
What exactly are payday loans?
Instant cash in the basic form is crediting a small amount for a short period of time. The most common amounts of payday loans range from several hundred dollars to several thousand dollars. The deadline after which we must return the borrowed money is 30 to a maximum of 60 days. What’s more, we pay the payday payable together with due interest in one installment. This means that the entire liability plus the costs associated with it must be returned once for 30 (up to 60) days.
Why are payday loans so popular?
First of all, this is because this product is awarded based on a minimum of formalities. Both on television, radio or the Internet, we can find numerous ads whose slogans inform that payday pay is granted as proof without certificates. And in many cases this is the case. We need nothing but an ID card. An on-site application, which contains various information, depending on the institution. Even if we provide our income, etc., we do not need to document it with certificates from the workplace or offices.
What’s more, the loan process is very short. We learn almost immediately whether we will receive a payday loan or not. Money is withdrawn just as quickly. We can have money on our account the same day.
It is also common for companies offering payday loans to get their first loan for free. However, an advertising slogan saying ‘payday pay for PLN 0’ is not all that we should pay attention to. First of all, we will learn about all costs of payday loans from the contract. So let’s not only suggest advertising slogans. Before we decide on a free payday pay first, point by point, let’s analyze the contract before signing it and make sure it is free and there are no other hidden costs.
What else is worth paying attention to is the consequences of late repayment, or rather what measures we can take to extend the loan period. Better safe than sorry and find out in detail what we can do if in 30 days we do not collect the cash needed to pay back to avoid paying very high delay costs.