The most important disadvantage of payday loans is, above all, significant interest rate. APRC, i.e. the total annual interest rate is much higher in their case than in the case of classic bank loans. What does this mean for the borrower? To the parabank you need to give back an amount much larger than the one we borrowed. For this reason, it is so important to approach the amount you want to borrow with caution. We must seriously consider whether we will be able to pay it back.
Late repayment is an element of payday payday, which can really cost a lot. Everyone who decided to take a payday loan should know that delayed repayment of subsequent installments will result in high interest being charged. As a consequence, we will refund a much larger amount to the parabank than the one we borrowed. That is why it is so important for payday loans to pay each installment on time. This will avoid unnecessary additional costs.
Although parabanks already provide the possibility of so-called credit holidays, such a solution is really expensive. The borrower must pay for postponing the repayment date. As a result, the loan becomes even more expensive. What’s more, the parabank may of course refuse to grant us such assistance in paying off the debt.
Chwilówki are so-called quick loans, whose popularity is increasing every year. More and more people who do not have a chance to receive a bank loan decide to borrow money in a so-called parabank. Chowówki have a number of advantages that translate into the fact that they are so popular. However, remember that you should be careful when applying them. Otherwise, you can quickly fall into a debt spiral, from which it is not so easy to get out. What to watch out for when you pay for payday pay?
The identity card is required by the loan companies not only because of the number and series that must appear on the loan agreement, but also because it is a document confirming the age of the applicant for the payday loan. It should be strongly emphasized that payday loans can only be granted to adults. So if we do not present an ID card, payday loan is a loan that is not for us. Therefore, an ID card is necessary to borrow money.
Payday loans are quick loans, whose popularity is now very high. This results, among others, from a very shortened, simplified loan procedure. A lot of people wonder if you can get a payday loan by presenting not your ID card but driving license.
A lot of people ask why an ID card is required to receive payday pay. It must be clearly stated that the loan agreement must contain data such as the number and series of the ID card. Only then is the contract that has been concluded a valid contract. Meanwhile, no other document – be it on your driving license or passport – is in vain to look for information on the number and series of your ID card. Therefore, the lack of an ID card makes it impossible to receive payday loans.
In the absence of an ID card – whether as a result of losing it or waiting for a new one – unfortunately we won’t be able to borrow money on the parabank. Parabanks require only an ID card as an identity document. By presenting only a driving license, we will not be able to confirm our identity. Moreover, it must be remembered that the ID card must be a valid document. So if it has expired, no one will lend us money.
If you are in a debt loop, you should carefully check the issues related to debt aging. Perhaps we will have some luck and it turns out that our debt has expired. In this situation, paying off the debt is not an option. It should be remembered that the claim is time-barred after ten years, while interest only after three years.
Consumer bankruptcy is a solution that currently exists in Polish law. However, it should be remembered that the declaration of consumer bankruptcy requires court proceedings. It is possible only if there are premises strictly defined by law.
In the case of a debt spiral, it is important not to take further loans or credits. They are not a way to solve problems. Instead, they will increase debt and the number of creditors. Therefore, it is a much better solution to start negotiations with existing creditors. With a bit of desire on their part, it will be possible to agree on a repayment schedule that will allow for gradual reduction of debt.
Trying to negotiate with a creditor is always a remarkable solution. It should be remembered that they do not have to bring the expected effect, but they are definitely a better solution than waiting for the case to be in court and a bailiff will finally knock on our door. There are a few rules to keep in mind when negotiating. First of all, you should never take a claim attitude, raising expectations of debt cancellation. However, it is worth presenting your life situation and explaining exactly why such serious financial problems occurred. You should also think about the amount that you can easily give back to your creditors every month.
Taking out loans without thinking can lead to very serious financial problems. It can lead to entering a so-called debt spiral, from which it turns out to be more difficult than it might seem.