Payday loans – advantages and disadvantages

Several years ago, the option of incurring financial liabilities appeared on the market, called payday installments. Very quickly it gained many supporters and opponents.

Payday loans

Currently, opinions about it are strongly divided, however, people reading understanding contracts have stopped looking at them so unfavorably.

Advantages

  • first loan – many companies offering payday loans in installments must somehow attract new customers. Therefore, when taking the first payday loan in installments, they offer various promotions. It can be, for example, no interest, or a much longer repayment period,
  • no restrictions – the only requirement when applying for payday installments is 18 years of age. It doesn’t matter whether the client is a pensioner, unemployed, student, fasting or any other job. The money will definitely be awarded,
  • possible repayment from any source – in every payday installment the most important thing is to pay it back in full. How the client arranges the money does not matter to the lender. Therefore, even people who work in black on a daily basis, but they also exist, can pay off their liabilities and be clean with all installments without additional problems or uncertainty,
  • zero information – the only information you need when taking out payday installments is an ID card. It does not matter where a person works, what is his credit history, whether he is on the list of debtors and whether he can afford a loan,
  • payment in installments – by far the biggest advantage of this type of payday pay. Thanks to this solution, we have a chance to pay off the entire borrowed amount without a lot of damage to the household budget.

Disadvantages

Unfortunately payday installments are not only advantages. If we want to receive a lot of benefits, we must also sacrifice some of our things.

  • much higher interest rate – payday loans have a higher, sometimes by several percent interest rate on loans granted by banks. We must be aware that we will pay much more than we actually receive, the more if we take another payday payday,
  • limited amount of money – unfortunately also the amount of money we would like to borrow is limited depending on the particular loan company. We borrow 5 in one company and 10,000 in the other. Nevertheless, we cannot count on payday loans higher than USD 20,000.

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