Taking a payday loan is like driving a car, if you prepare well and keep all the safety rules, then you will easily reach your destination (you will pay off a quick loan). The main thing is to choose a loan company and read the contract carefully.
Many of us try to borrow from family and friends first, but this is not always the case. Friends either don’t have or don’t want to borrow money. We also have doubts whether to borrow from loved ones – after all, relationships between people are often complicated by money. The solution is to take advantage of a quick loan.
Still, a large group of people are not convinced to payday loans, considering them to be a low-risk product and burdened with high risk. Is this really the case? What to do to feel safe when taking quick loans?
How to choose a loan company?
Unfortunately, there is no shortage of dishonest companies on the loan market that will want to deceive clients, eg by using excessive fees.
So before you decide on payday loans, take some time to look for a suitable and reliable lender. If you are not sure if the company you have chosen is a reliable entity, you can contact, for example, the Association of Loan Companies, where you will get valuable information on the practices of lenders.
Ask about the total cost of the loan
To safely take the payday loan, you need to know if we will be able to pay it back in the future, and for this we need to know the total cost of money borrowed.
Many reliable companies already have ready forms prepared on their websites with the total costs of payday loans calculated. However, if we have doubts, let’s find out again about the costs directly at the loan company.
Let us remember that every lender has the legal obligation to provide the customer with an information form before signing the contract, which will include the total cost of the loan, or the cost of any delay in repayment or recovery.
Read the documents carefully
Before taking payday loans, read the contract and terms and conditions that the loan company will give you. Make sure that each record is understandable to you, that everything is clearly explained and does not raise any doubts.
Pay particular attention to the costs that must be incurred when taking payday loans, which should be included in the table of fees and commissions, eg
- commission amount,
- registration, preparation, verification fees, etc.
- the cost of extending the payday loan repayment period,
- costs of SMS and paper prompts,
- costs of payment requests, debt collection costs,
- default interest,
- the cost of connecting to the hotline.
If you have questions about enrollment, contact the loan company and ask for clarification. Also, consider whether you do not have a loved one among your loved ones who together with you will analyze the provisions of the contract and advise on choosing a quick loan.
Protect yourself from debt
In order to take the payday loan safely, you must first of all have income that will allow you to pay it back later. No loan will prove safe if you want to take it out to pay off your previous debt or know that we won’t be able to pay it back in the future.
Even the most friendly and reliable company offering payday loans on favorable terms will not provide the customer with a secure debt. The basis for financial security depends on ourselves and our common-sense thinking. Safety is not served by hasty and ill-considered decisions.