Repayment of loans is a thought that accompanies the vast majority of people in Poland. Loans have become a very common solution for many types of problems, and often the only way to obtain goods such as an apartment, house or car. Thanks to loans and credits, we can deal with unexpected expenses as well as afford pleasures that would not normally be possible due to their price. The most common reasons for taking out loans is the need to collect funds for your or your loved ones’ treatment, expenses related to everyday life – such as car insurance, apartment renovation, larger purchases, Christmas gifts, shopping for household appliances and electronics. We also need money for various types of trips, such as holidays – both in Poland and abroad. We often spend money on a car loan, whether it’s new or used. There are plenty of reasons why we decide to incur liabilities, so it’s no wonder that there are more and more loan offers on the market that encourage their potential customers with lower and lower interest rates and commissions. According to the ads presented to us, the repayment of loans is to be light, easy and pleasant, but, of course, in practice, it is not always so easy. Clarification at http://badcreditpaydayloansrhpsd.com
These are also golden times for payday loans, i.e. loans that we can borrow much faster than traditional loans. Waterpumps are designed for people who want to get additional funds to settle as soon as possible. It is also a good alternative for those who for various reasons can not receive an ordinary bank loan, because, for example, they have a negative credit history at BIK. We can also use the instant pay offers via the internet, and the time from the beginning of the procedure to the receipt of funds on the account will not exceed several dozen minutes. In most cases, it is enough to present your ID card, fill in a short form and confirm your identity by logging in to our bank – which will quickly confirm our identity. However, what may be problematic is the repayment of payday loans. They have it to themselves that lower amounts – from a few hundred to a maximum of several thousand zlotys – are taken and for short repayment periods – from a week to a maximum of 60. The most popular amounts range from 1500 to 2000 zlotys and are drawn most often for 30 days. This means that the payment of a payday loan must take place at the maximum during this period, which may be quite a problem for many borrowers, despite being aware of the specificity of the loan they are borrowing. Unfortunately, it is estimated that even one million Poles have problems with settling their obligations, and this number is constantly increasing. What dangers do you have to prepare for when you pay off your loan or pay off ? So what do you need to know to prepare yourself accordingly? We invite you to read!
Loan repayment – what is worth knowing?
With the most important data on the repayment of loans, we should really get to know it before it is taken. The same applies to payment of a payday reminder. We must remember that it is the entity providing additional financing – the bank, the loan company – that is obliged to provide us with the terms of the contract before signing it! There is a complete set of information on it. Most often it is written in a legal language, which is why we often skip reading it before signing, but if necessary – it is worth returning to it. The agreement will be included the following: date of payment of each individual installment and the amounts that make up the repayment schedule, the deadline the end of the loan repayment or loan repayment, the amount of principal and interest, we have to pay, and the bank account number to which we should every month transfer money. By default, the bank also puts information in the loan agreement, which threatens us not to meet the repayment dates. Usually, these are penal interest, as well as debt collection activities for which we ourselves have to pay. The last step – if we do not comply with the loan repayment dates for several months in a row – is to terminate the loan agreement and refer the case to court. Therefore, it is better not to allow such a situation and make sure that the loan is paid according to the dates indicated. The untimely repayment of the loan is associated with serious, unpleasant consequences that may follow us for months or even years. Repayments of payday loans are no exception here, loan companies operate in the same way – most often in a more burdensome, relentless way.
Repaying a payday – what is worth knowing?
As in the case of a bank loan, when deciding to take a break, we also need to sign a contract that contains all information regarding its repayment. However, it should be remembered that a payday loan is usually a very short term – from a few up to several dozen days. Otherwise, interest is charged on unpaid installments and the debt collection process looks a bit different. Usually, these are much higher costs. Why? A loan company that gives a payday automatically chooses a higher risk. It does not check its clients in detail, it does not require documents confirming income, and often also turns a blind eye to negative information from BIK about the client. Unfortunately for us, higher risk is compensated by higher loan costs. Therefore, we must remember that repayment of payday loans is very important, because even small arrears can cause quite a lot of problems.
Ways to pay off loans – take advantage and get rid of debts
It is said that the simplest solutions are usually the best and this is also the case here. Therefore, the easiest way to pay off the loan is to pay the installments regularly until the end of the commitment. Often, however, it turns out that it is not as easy as it may seem. Many people have problems with regular repayment of loans and payday loans. This is due to various reasons: job loss, deterioration of health, illness in the family or simply taking too many liabilities on your shoulders. It is these people who most often look for a prescription to repay loans and get rid of troublesome obligations. What is worth doing when repayment of a payday loan or loan repayment becomes more and more difficult, and in extreme cases even impossible?
- Loan restructuring – usually possible in the case of contracts with traditional banks, but sometimes borrowing companies also agree to it. What is the restructuring? Most often on the creation of a new debt repayment agreement. If the bank agrees, our installments can be reduced and spread over a longer financing period so that their monthly repayment is possible. Sometimes financial institutions also agree to suspend the loan repayment for a few months. It gives us the opportunity to improve our financial situation, find a new job and obtain funds for further repayment of installments. To restructure the loan, please contact the institution that gave it to us. Typically, special procedures are created for this purpose, e.g. specific documents that we must complete.
- Consolidation of liabilities – repayment of loans is difficult if we have too many of them. The installments accumulating every month can reach a dizzying amount and deprive us of the majority of remuneration. This leads to situations in which we pay only part of the installments and thus create a problem in the form of arrears. Consolidation of loans is a great solution in this case. It’s about making another commitment. It sounds terrible, but in practice it is simple and effective. The new loan pays off all the ones we have had so far. We only have to pay off the new commitment, which we spread into the number of installments, so that each of them is small and does not cause the loss of most of the money from the payment.
- Overpaying loans – a solution for those who have no financial problems, and only want to get rid of the loan and payday liabilities as early as possible. The easiest way is to overpay them, for example transferring two installments in one month. Then not only will the loan repayment date be shortened, but it will also be much cheaper. The faster we pay off the liability, the lower the interest. Remember, however, that in the case of some financial institutions, the mere transfer of funds will not be enough. If an early repayment of the loan or its overpayment is possible with us, we must give the bank or loan company clear information that we want to transfer the surplus funds on our account to repay the capital. Sometimes it will be necessary to sign an additional document for this purpose. The payday payment before the deadline is usually governed by the same rules. In a nutshell: if you want a bank or a loan company to repay more in a given month, or you want to pay off your entire debt before maturity, contact your lender and find out what the related procedure looks like.
As you can see, despite appearances, we have a lot of opportunities to make it easier or even possible to repay loans and pay off payday loans in case of financial problems. Of course, this requires a certain discipline and consistency, but rarely our situation is completely hopeless. Apart from the ways to repay the loan, it is worth mentioning what not to do, not to bring your finances to ruin. Above all, do not pay one loan different. Each new liability – apart from a consolidation loan – will only build up financial problems. If in a given month we take out a loan or a short-term payment only to pay off the installment of the obligation taken earlier, we will be relieved only for a moment. The next month we will have to pay two installments, so our problem will be twice as large. Repayment of loans, just like payday loans, does not have to be difficult or demanding. It is enough to adhere to the above-mentioned principles and then we can sleep peacefully.