Poles are more and more willing to take out various types of loans, thanks to which they can afford to buy an apartment or renovate it, but also to go on a dream vacation or buy a car. We have different needs, which is why customers’ interest in short-term payday loans is also growing. Unfortunately, still many people are not fully aware of what they should pay more attention when applying for such a loan. And it is worth knowing that this type of loan does not get us into financial trouble.
Familiarize yourself with several offers
The demand for short-term payday loans is growing, which also translates into the number of currently available offers. Both traditional banks and loan companies urge us to make such a financial commitment. Therefore, we should not decide too hastily to sign a contract with the first institution whose offer we are interested in. Let’s remember that a lot of competition can mean a fight for customers, so it’s worth looking for the most attractive offer that suits our individual needs.
Therefore, if we are going to indebted ourselves for a short period of time, let’s first find out which institutions have such loans. Then, if only briefly, let’s get acquainted with the details of each of these types of proposals. Let’s check, for example, how big a loan we can count on, what is its interest rate and what conditions we have to meet in order for it to be granted to us. When we limit the number of offers, for example, to three, then we can review the terms of the loan agreement in more detail and make an informed decision regarding such debt.
Check the total cost of the loan
When looking for the best loan offer, many people pay attention primarily to the interest rate on such debt. But we should be aware that in many cases these are not all the costs that we will have to bear as part of the repayment of the liability towards the bank or loan company. Just a little closer look at the individual loan agreements to quickly find out that the total cost of the loan can be much higher than we initially think.
When we get acquainted with the loan offer, we must look for any information about additional fees charged to the client. In addition to the already obvious interest rate, they can include all kinds of commissions or debt insurance. Therefore, it is worth asking for a little more time to read the final agreement to be 100% sure how much we will pay in total for the short-term loan chosen by us. Low interest rates tempt many customers, but it is not always a determinant of a more attractive offer.
Read the loan agreement
After talking to the adviser of the selected bank or company, we often do not even read the contract presented to us believing that we have been informed about all the details. However, we cannot sign any documents without carefully reading them. Only in this way will we find out if all the conditions presented to us have been included in the contract and whether we agree with its provisions. Too often, clients hastily signing everything that a representative of a financial institution will prepare for them, only after they find out about the provisions that are unfavorable for them. It may be even the abovementioned additional fees or penalties for late repayment of subsequent loan installments.
Let’s give ourselves some time and line by line to read the entire contract. If any doubts arise, let us ask about issues that are incomprehensible to us. Employees of the bank and loan companies are required to provide us with all information about such a loan. Of course, we can also use the help of someone outside such an institution. For example, it can be a legal advisor dealing with matters related to financial matters on a daily basis. The most important thing is that we know exactly what we agree on when signing the loan agreement.
Measure your intentions
An extremely important issue when applying for a short-term loan is to carefully consider whether we can actually deal with such debt. Consideration should therefore be given to our monthly income and expenses, which we cannot forego, such as utilities or rent. In this way, we will determine whether the installment of such a loan to us will somehow disturb our financial liquidity, which could be catastrophic.
If we have any doubts, let’s find out what are the consequences of late repayment. In many cases, it turns out that the penalty for even minimal delays is really high. In this situation, it is worth considering twice whether we really want to take such a risk. Let’s also see if there is a possibility of renegotiating the loan agreement in case of problems. We should also remember that every customer has the right to withdraw from this type of contract within 14 days of signing it, without giving any reason.