Credit for debtors
Any lending of money involves risk. Before you take out a loan or credit you should consider whether this is your last resort. Once, the only institutions that lent us money were banks.
Along with the development of technology and economy, non-bank institutions have been created that mainly borrow via the Internet. Their main advantages are the speed and ease of obtaining a loan. But are these advantages really attracting customers? Read below what to watch out for or borrowing!
Borrowing to banks
Banks are large companies that offer cash and mortgage loans. Many of these things help people in difficult situations or if we want to buy the dream thing. We often take loans for things that are not necessary at the moment.
Do we really need a new TV or car straight from the living room? In banks, we often have to give a reason why we want to spend the money, but let’s think again. Do we really need the thing for which we take credit?
Borrowing from non-bank institutions
With the advent of non-bank institutions on the market, the demand for loans increased. Receipt of the so-called payday loans are much simpler than a bank loan. Each bank verifies its clients very much before borrowing money, while non-bank companies treat clients more gently.
Many of them do not even check the data in the BIK, KRD, ERIF databases. They take great risks. Hence, these offers often have high APRC.
Borrowing from private individuals
So-called private loans. They are the most risky form of borrowing money. Their high interest rates and the things we have to pay against are very suspicious. If you want to know more information, we encourage you to read our article: private loans for those in debt.
Before we visit the lender’s website or visit a bank branch to take a loan, let’s go through the following steps to make sure that we borrow with care and are aware of the consequences:
- Read exactly what is written on the lender’s website or listen carefully to the consultant who presents you with the offer.
- Watch out for APRC – the total cost of the loan.
- Contract – the most important document that certifies that you have read the offer and accept it. If we sign it, of course, we can withdraw from it for a certain period, but it’s worth signing the documents once and for all.
- Choose a loan period that will not be a problem for you when paying installments. The most common mistake of many people is taking payday loans, which turn out to be too short in repayment, which has consequences in the absence of timeliness.
- Bushes companies – there are many scammers on the market tempting their customers with low interest rate loans. However, it is better to be careful, because the offer includes hooks such as: mortgaging a house or very high fees when late paying installments.
- Debt spiral – certainly the reason for taking out the loan cannot be to pay off your previous debt. This can lead to a spiral of debts, which leads to a very bad financial situation.
- Ask questions – if you have any doubts about the offer or just do not understand something, then ask questions and the company that provides loans will solve your doubts.
- Think about whether or not a loan is what you need right now. If you still claim that this is a necessity, then use the offers of trusted companies.