Many negative opinions are often heard about incurring liabilities in institutions offering short-term loans. These opinions are based mainly on calculations of economists, which shows that this type of services offered is very expensive, and customers who decide to conclude contracts are obliged to return the amount almost twice that borrowed.
Of course, it is difficult to disagree with statistics that provide undeniable evidence that this is the case. As you know, however, the proverbial medal always has two sides and this is also the case here.
Disadvantages of payday loans
Parabanking institutions, because they are so called on the financial market, undeniably grant loans for the so-called high percentage. In addition, according to the agreement, these loans must be repaid by the borrowers within thirty days of the amount indicated in the agreement. This solution for many customers turns out to be fatal, because in most cases they are people who will not be able to fulfill the contract in a short time, and if they succeed, the situation in which they find themselves will force them to take further measures, which may lead to a spiral of debt.
Advantages of payday loans
On the other hand, however, very often the loan payday loan is the only way out of the problems they find themselves in. First of all, they receive these funds “immediately”, thanks to which they have the opportunity to solve a problem that is a priority at a given moment. In addition, parabanks do not require their clients to provide income statements, an employment contract and a positive credit history in BIK, and therefore are often the only lifeline.
It is obvious that having a choice is much better to use a more cost-effective solution. However, life varies, which means that this form of help may be the best at the moment.