When not to take an installment loan or payday loan?
Payday loans and quick installment loans are one of the most popular financial products - they save when you suddenly need money. However, is it always necessary to save yourself by taking another commitment from a loan company? Check when not to take an installment loan or payday loan at https://www.paydaychampion.com/!
Payday loans are characterized by the lack of formalities and quick payment of money to the account. It is similar with non-bank installment loans - the difference is that a larger amount is involved here. People who need a dozen or so (and not several, as in the case of payday loans) thousand dollars, apply for an installment loan. However, there are situations when you should not apply for a payday loan or an installment loan. In today's article, we'll discuss when to avoid them.
You have too many obligations
One of the situations in which you should definitely refrain from applying for a payday loan or installment loan is when you already have many liabilities on your account. Applying for another loan could make you unable to pay off the next installment and you will fall into debt ... It is not worth taking a loan to pay off the loan - this is a vicious cycle that only drives the debt pyramid.
- TIP: If you have many active loans or credits, you should consider consolidation. Thanks to this, you will pay off one installment instead of many. In addition, it may be less than the sum of all installments you are currently paying.
No regular and regular income
Have you lost your job, are you in the process of looking for a new one, or maybe you work part-time or get a contract of mandate? If you do not have a fixed and regular income, and the specific amount of remuneration for each "tenth" does not affect your account, forget about applying for a loan.
When taking out a payday loan or installment loan, you must have constant income - the one that you will definitely receive. To pay off your loan and not be in arrears with the lender, you must have funds for monthly installments.
If your income is neither constant nor regular, you need to put aside the decision to take out a loan.
Bad credit history
You do not have creditworthiness or have negative entries in BIK or another database of debtors ? If so, you need to realize that it will be harder for you to get a loan on good terms. There are several offers on the market for people with debt. As a rule, however, the interest rate is then higher, and additional conditions are required, such as having a guarantor.
If you are not sure that you will be able to pay off your loan, postpone this decision for a better time, when your creditworthiness improves. Check out how to build a positive credit history .
Applying for an installment loan or payday loan is a very important decision, which - if the contract is not fulfilled - may result in serious consequences. Before you start filling out the application, make sure what your financial situation is - are you sure you can afford a loan? Remember, the more obligations you have, the harder it will be to deal with them!Return