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Is a payday loan a good idea?

Чи є кредит до зарплати хорошою ідеєю?

Life likes to surprise and not everything can always be predicted. Sometimes there is a time when unexpected expenses arise. If you are unable to borrow money from a family member, you can take a loan from a bank. Recently, quick loans, so called payday loans, have also become very popular.

Have you come across the statement that the only advantage of a payday loan is the speed with which it is given? It is hard to disagree with this statement, but is this the only benefit of choosing this form of financing? Below we explain what it is and what the pros and cons are.

Today, a fast loan online is an express cash loan for a short period of time. Admittedly, online payday loan offers prevail, but those who prefer cash or do not have access to a bank account also have a choice of fast cash loans (including mortgages).

Usually, the borrower has 30-60 days to pay back the full amount. If you need more money, it is better to use an instalment loan.

Usually, recipients interested in getting a loan before payday choose this solution because of the urgent costs that exceed the savings.

Where to start?

If you need a source of external financing immediately, you must first clearly define how much is needed and in what time period you will be able to pay it back. Both underestimation and overestimation are unfavourable for us, because either the goal turns out to be unattainable even after obtaining the loan, or the excess amount is lost to unnecessary whims and the debt remains.

However, a rational determination of the loan amount is hindered by the circumstances of taking the loan, i.e. lack of time and emotional decision-making. In order to borrow safely, you should always remember that even easily obtained money will have to be paid back to avoid unpleasant consequences.