How to borrow to pay off a loan in a loan company? A short guide that will help you in a more rational and responsible way to use the offers of loan companies.
Everyone will say that credits and loans are available to almost everyone. These are financial products that you can use to make your plans and dreams come true. But you should borrow wisely and responsibly. Because instead of improving our home budget, we will get additionally into new financial problems.
It’s enough to follow a few basic rules and do not just use advertising to make a rational decision. 8 tips on how to borrow at a loan company and not regret your decision.
How to borrow to pay off a cash loan and not regret it?
1) First loan for free. Many loan offers, especially in online loan companies, are actually a loan for new customers for free. You borrow and give away the same amount. It should be remembered that the nominal interest rate is not the same as the real interest rate. Nominal interest rate is interest on the loan, while the actual one presents the total cost of the loan in percent, expressed on an annual basis.
Before you sign anything, check the offer of the loan company carefully on its website or read it in the branch. You will learn in this way whether the loan is really free.
2) Do not borrow more than you need. You’ll borrow more – you have to give it back more. If the cash loan is not promotional for PLN 0, the more you borrow, the higher the cost of the loan. It is absolutely pointless to borrow “for stock”. A smaller amount of the loan is definitely a better chance that you will repay it within the prescribed period.
Read everything very carefully (in the end it’s all about your money!). Do not understand a term or wording, ask for clarification. In case you do not get a sufficient explanation, cancel the contract. Loan companies offering cash loans are very many and there is a lot to choose from.
4) Standing order on a bank account. It is certainly convenient, because we do not have to remember about it. On the other hand, when we forget about its cancellation, the money will be transferred to the lender’s account on a monthly basis (and possibly every week). It is worth taking into account the fact that in some banks, the option of standing orders may be payable.
How to borrow to pay off your cash loan and not increase your debt?
5) Are you having trouble paying the loan? Do not use the rule that “somehow it will be!”. You will not get extra cash suddenly, the loan company will not call you and cancel your debt. Contact as soon as possible with the lender, inform about your problems and find a way out together.
A quick reaction on your part is to avoid paid reminders and interest as well as debt collection or court proceedings.
6) Never borrow money from another loan company to pay off your current loan! It is a simple way to fall into a spiral of debt, from which it is very difficult to get out straight. There are many cases when a small loan for 30 days has caused several years of financial problems.
7) Do not borrow in untested companies, from “pole” advertisements or other online and newspaper advertisements. Announcement with a mobile phone or email address, with the advertising slogan “cheap cash loan for everyone. without checking in “it should be thrown straight into the basket.
On the website you will find only reliable Internet loan companies: loan companies search engine up to 60 days and loan company loan installments for installments.
8) Common sense. The most important thing. Without this, even the best advice is not applicable. Remember! Nobody will give you money for free. Loan companies, like any other economic entity, must earn money to stay on the market. It only depends on you who you earn and how much.