In What Situation DO NOT Get A Personal Payday Loan?Loans
A Personal Payday Loan is a credit product that you can use to make money easily and quickly, and then spend it for your purpose. As a result, Personal Payday Loans are the most risky form of credit for lenders, which is why the risk is the most expensive, so you can still face double-digit interest rates on Personal Payday Loans. In addition to the higher price, banks are trying to filter out bad debtors to minimize risk, and therefore expect a stable and proven income from the debtor. All in all, a Personal Payday Loan is a simple but inexpensive solution if you need money and will be able to repay your debt.
Why can a Personal Payday Loan be good?
Personal Payday Loans can be an ideal choice for you, because you can get a relatively fast amount of money. If the bank approves your loan application positively and pays you the requested amount, you can then use it for your own discretion . Thus, a Personal Payday Loan bridging solution can be a temporary disruption of money or sudden, unexpected release.
You can get a Personal Payday Loan with a small to medium loan (up to a few million forints), the term of which is usually medium-term and typically has a fixed interest rate. The application process is not complicated and long, but at the same time employers’ income certification (for entrepreneurs with NAV certification) is absolutely necessary for the application.
When is a Personal Payday Loan explicitly harmful?
A Personal Payday Loan can be attractive, but in many cases it is harmful. There are expenses that need not be solved from a loan and financial situations where, although you may feel you need money , a loan would only cause additional problems.
It is by no means recommended to add a Personal Payday Loan to luxury expenses, that is to say, any expenditure that is not essential in your life. For a holiday, a larger television set, or the latest mobile phone, spend the money you put aside! It is worth thinking that the thing you pay for a Personal Payday Loan will be 30-40% (or even more!) More expensive than your price: you will have to pay more for this as a Personal Payday Loan repayment.
On the other hand, you have to pay back your available income during the years of repayment. In other words, the monthly money you spend will be less than you currently have, so you can spend less on consumption or savings, and in the future it will be even more difficult to afford spending that you borrowed. If you take a loan of 1 million HUF for 5 years, it will cost you about 20-25 thousand HUF each month in the next 5 years. Think well if you can manage this amount.
If you need a loan because you do not come out of your income, you spend more than you have on your income, you will have a problem with stable jobs and regular income. It may be a temporary good-looking solution, even for a few hundred thousand forints, but it will only worsen your financial situation in the long run. Regular expenses, no matter what they are, should not be paid on loan!
What is the alternative to a Personal Payday Loan?
If you do not have enough money to buy a product or service, think first of all whether you can postpone the purchase. If you can count on future income or save as much as it covers, it can be the best alternative to a Personal Payday Loan. You’ll get the same thing later, but at a lower cost, because you will save interest on your Personal Payday Loan and other fees – that is, you have to spend less money than you would use to repay the loan.
In many cases, it is worthwhile to use savings instead of picking up a Personal Payday Loan. If you have savings, find out what conditions you have access to! It is not always the case, but often financially advantageous to use invested or tied assets as a Personal Payday Loan. Remember, in this case, the golden rule is to recoup the savings you use from the amount you would use to repay the loan.
Depending on how and what you would spend on borrowed money, you may want to consider other credit options. Since a Personal Payday Loan belongs to the category of borrowed credit products, it is probably more attractive to find a solution, but of course it has other constraints. You will certainly find more favorable terms with product credit, mortgage credit, but it can also be a substitute for a credit card if you need a loan for a longer-term, lower-consumption target, not for a particular item, and you can repay the amount to your credit account on a monthly basis.