The growing popularity of payday loans introduces a bit of confusion over the issue of total loan costs. Some of the unconscious customers are guided only by advertising and representative examples, and this can cause that the cost of their loans will ultimately be much larger than they expected. See how not to be fooled when you take quick loans.
The cost of a payday is not just a sum borrowed
The cost of an online loan consists of both the amount of money borrowed, the interest rate, interest rate, commission, possible loan insurance, as well as additional costs such as preparation fee, phone call charges and written payment invoices, as well as for a collector visit. Ultimately, the cost of the loan can be up to several times higher than the amount borrowed. Here, special attention should be paid to the CRRS of the loan, because this parameter expresses the real interest rate and can reach up to several thousand percent.
Where is the information about the total cost of the loan available?
Information about the costs of a loan in a given company should always be on the loan company’s website, as the law requires such companies to include detailed information about costs. Therefore, always check these legal provisions carefully before deciding to sign a loan agreement. It is also worth referring the information found there to the current law, which assumes that the maximum loan costs can not be higher than 100% of the amount borrowed.
Calculation of the cost of the loan
There are different rules for granting loans in each company. Short-timers via the Internet differ, for example, in repayment terms and borrowed sum, and these components have an effect on the final cost of the loan. As a rule, the higher the amount borrowed, the final cost is also higher and vice versa.
The best way to calculate the cost of a non-bank loan is to use Scapina online on the website of a specific loan company and check the loan rankings first in order to select the cheapest ones. Instant readers are described in the rankings, among others, which includes data on costs that the borrower will have to bear. The rankings rankings are updated on an ongoing basis, which makes the data contained therein a great starting point when choosing the right loan.
Ranking loans through the Internet will show us that the cheapest loans are and how the issue of fees for the first loan, which is the APRC for payday and we have time to pay off debt.
What can additionally inflate the expense of a payday?
The final expense of a payday may be higher, for example, when the installment is not paid on time. In some cases, non-bank institutions add additional amounts for payment delays, so each subsequent day of delay will result in an increase in debt.
What should be taken into account when calculating the cost of a quick loan?
When calculating the costs of a quick loan, it should be taken into account that we will usually have much more to pay than we have borrowed, and although this may seem trivial, some people forget about it or simply do not translate it into their financial capabilities. By borrowing a certain amount, we have in mind that this is exactly what we will have to pay and plan our budget for this amount, and meanwhile we will have to tighten our belt because we have more money to give back. So let’s always check a representative example of a loan and calculate your own cost exactly. It is also necessary to realize that our financial situation may change and it may also happen that we simply will not be able to pay off the debt.
Of course, when calculating the cost of a payday loan, you also need to pay attention to the loan in a given company. Most loan companies give the first loan for free, while the next ones are already high interest, so if we take the second one, it will not be as cheap as the first one. Promotion with a loan for PLN 0 for new customers is aimed primarily at attracting as many interested people as possible, and at the same time some kind of? Taming them? with the idea of a quick loan, but unfortunately this promotion is one-time for each client.