Payday loans have been enjoying great popularity for years. Many adults currently have such a commitment, or have recently used it. As a rule, it is the easiest to receive financial product available on the market. Virtually everyone will receive it. However, is it always a good decision?
Momentum and its consequences
Regardless of how much cost we incur, or in other words, how much we overpay for the money lent to us. It doesn’t matter what the additional costs are. Whenever we borrow money – regardless of whether we do it in a bank, credit unions, a non-bank loan institution, a private company or a payday loan company, it is necessary to return the money borrowed along with interest and additional costs. It is unchanging, therefore, that sooner or later we have to surrender money with a surplus.
So regardless of where we want to borrow money, we must do it responsibly and fully consciously. The easiest way to do this is by answering one question – can we afford the payday loan, and therefore whether our budget will allow us to pay our liabilities on time. If we can afford repayment by the deadline indicated in the contract, everything is clear. But when should we give up another commitment?
When we shouldn’t decide on payday loans
Payday loans are characterized by the fact that money is borrowed quickly, without unnecessary formalities, for a short period. The deadline for repayment of the entire liability with interest is usually 30 or 60 days. The payday loans amounts, in turn, range from several hundred to several thousand zlotys.
Although you don’t work and you don’t have regular income, you have a chance to get payday pay. Most often, you only need your ID card for this type of loan, and the payday loan company does not verify your income or obligations. However, in this situation, since you do not have the cash you need today, will you have it in 30 days to pay off the debt with a surplus? Probably not. If your financial problems are not temporary and you do not expect an injection of cash in the near future, you should not opt for payday loans or any other obligation. The repayment deadline will come very soon. In 30 days you will have to give back all the money borrowed together with interest once. If you do not do this, you will be charged with late repayment, which may soon exceed the payday capital. In this way, you can quickly fall into even greater financial trouble than before taking payday pay.
Regardless of the name of the financial liability, we must do it with caution. It is no different in the case of such popular payday loans. If we know perfectly well that we will not have anything to pay off our obligations, do not sign the contract and do not get into debt even more.