The coronavirus pandemic caused an economic crisis and completely changed Poles' attitude to money. The number of people thinking in particular about looking for saved money and not debt is increasing. Recently, credit activities have a particularly difficult time, and it can be even worse ..
The primary concept in times of crisis is not falling into debt. Applying for the next loan to cover your current expenses is the shortest way to an endless series of debts.
The current reality of the credit market can cause bankruptcy. The information presented by CRIF and BIK shows that the total number of loan applications in March fell by 5%. comparing with the optimal over one year time, and by 13% less than in February this year. The total amount requested by borrowers is also falling, in March the reduced number of financing granted was 23 percent. compared to last month. Not only that, the number of approved loan applications is decreasing, a large part of the business has intensified its requirements, considering the fact that customers may have problems with paying off their debts. At the end of March, the total number of unaccepted loan applications increased to 66%.
The current dull situation of credit campaigns is affected by reduced demand for loans, but also by the provisions of the anti-crisis shield, which have rigorously reduced interest-free values to 21 percent. for loans that last more than 30 days, and 5% for those finances that do not exceed a period of 30 days. Specialists warn that the current situation may be beneficial for the gander. The demand for non-bank loans will not disappear altogether, if the number of honestly functioning credit activities is reduced, the vast majority of such companies will go to tgz. the gray area.
There are situations that require immediate action. Usually, unfortunately, it turns out that you also need money that is too little.
Payday loans are a solution that can be helpful at such times. And although they are not an ideal source of financing, they have several important advantages.
Why payday loans?
Since payday loans have appeared on the market, interest in them is still high. It does not fall even after the introduction of certain restrictions, which appeared in the law, which mean that today many loan applications are, however, rejected or verified as to the amount of the loan amount granted. However, this type of financing is still the most flexible loan on the market. The rules of granting are more liberal than in the case of bank loans, and competition between loan companies has also made the offers more diverse, tailored to the specific needs of various customer groups.
The fastest payout right here
Some banks are able to run cash loans in a few hours. In practice, however, you need to meet a lot of conditions for it to succeed. Meanwhile, payday payday payments in 24 hours are basically the norm. Increasingly, this time is reduced to a quarter of an hour. Banks are not able to propose such a fast payout for many reasons and probably will not be soon. And it is the waiting time for financing to be launched that is one of the most important criteria borrowers pay attention to. This applies not only to emergencies, but it goes without saying that in such situations time will be even more important.
What do we borrow for?
Contrary to what one might think, most people do not spend their payday loans recklessly. Quite often they are intended, for example, for urgent repairs of the car that commutes to work. There are cases - quite numerous - that the health care needs are financed from payday loans. Private medical visits or the purchase of medicines are so important that they cannot usually be postponed until payment is received. In addition, payday loans are used to settle the budget in an emergency: when the fridge refuses to obey, you have to pay urgent bills etc. Relatively rarely, payday loans are used to finance expenses such as a holiday or a family event.
Loans? Borrow responsibly!
Payday loans in many situations can really help, but that does not mean that they are ideal financial products. They have their drawbacks, some of them quite serious. First of all, it is a relatively expensive way of financing. APRC is not a good indicator of this cost, because payday loans should be repaid much faster than after a year, but their price is high anyway. High flexibility can also be a disadvantage, because the liberal assessment of the application may be tempting to provide "rounded" values of income and expenses. In fact, all the criticisms of payday loans could be reduced to the issue of responsibility. First of all, the borrower should rationally and reliably assess his options. Before you take the payday loan, check that you can pay it back on time. If not - you have to look for another source of financing, even if in theory the loan application could be accepted.
The responsible use of payday loans can help in many situations. Urgent expenses requiring immediate coverage can be repaid with a quick loan. However, it is worth knowing that it is an emergency instrument and in no way should you finance purchases made just for pleasure.
Many people have a problem paying off one liability, what if they have several. Many loans at one time can be a real problem. The amount to be repaid increases along with interest for delay. What should people do who find it difficult to get out of the spiral of debt? One way to deal with many debts is consolidation. What is it and where how to use it?
When we have many payday loans
Poles are indebted from month to month. We can't handle repayment and debt collectors knock on our door. Delay in payment of installments can cost us a lot and the amount increases every day. At the time when we have many active loans, we may be in big trouble. It starts with prompts and even ends with a bailiff's execution. In this case, it is rather too late to save. The court bailiff will absolutely recover the debt we owe to the loan company.
Before this happens, we can save ourselves with consolidation - that is, combining many liabilities into one convenient loan. This solution can help us when due to random events we are unable to pay the debt. Consolidation of payday loans is a salvation for many people. You can find out the details by reading the article on the website.