What is payday loans?

What is payday loans?

Payday loans are becoming more and more popular among Poles. People of all ages reach for them, but especially those who cannot afford a cash loan in a bank because they do not have adequate creditworthiness.

Instantaneous payment, as the name suggests, is a loan that we receive at one moment without any formalities or additional documents. The only limit is the amount for us, as we usually do not receive more than two thousand zlotys. So if we need a small amount of money instantly to settle a household budget or replace equipment or carry out a small renovation of a flat, we go to loan companies for a quick loan.

This is the only solution for people without income and creditworthiness. In this case, the lender does not require any potential customer documents or income statements, nor does he have to prove that he has not had problems in the past with repayment of other loans or financial obligations. This means that anyone who reports to a loan company is able to receive it in a dozen or so minutes either in their hand or on the indicated bank account.

It happens that you can perform the entire procedure by phone or the Internet. And this is where the benefits of payday loans usually end. Apart from the fact that everything takes place without unnecessary formalities and additional documents, the entire further procedure can only disappoint us.

Quick and easy money

Quick and easy money

Fast and easy money, contrary to appearances, only looks so colorful. The first problem may appear as soon as the loan is repaid. We have to pay off the payday loan very quickly, usually they are short-term and even a one-day delay can cost us a lot. We have to pay back this type of loan within a dozen or so days and there is usually no question of borrowing larger amounts. The cost of taking out such a loan can reach up to several hundred percent per year. However, this is best illustrated with examples. Well, borrowing $ 500 after two weeks we have to give away $ 750. The situation is even worse when we repay the loan after the deadline.

Despite such strict rules in Poland, payday loans are nevertheless very popular. Therefore, we should remember that before signing such a contract, we carefully read its terms, it will allow us to protect ourselves in the future against problems, and above all against losing a large amount of money. However, not all payday loans have such drastic conditions.