Regardless of the type of loan, the liability must be repaid. Before you sign a loan agreement, it is worth getting to know the iron rules of borrowing. Here they are.
The first loan for S 0
If just before Christmas we did not have a small amount of money to achieve our holiday goals, we should consider taking a small loan, e.g. for S 0. To receive such support, two conditions must be met:
- return of liability on time
- having the status of a new customer of a given loan company
The downside of this option is the need for quick repayment (e.g. within 30 days). However, a small loan amount, e.g. S 200-500, can be repaid from the payment in January.
Quick loan repayment
There is a relationship in installment loans. The longer the repayment period, the higher the total cost of the loan. When making a commitment decision, consider the shortest loan period. Of course, taking into account the financial capabilities of the household and the maximum amount of the monthly installment.
Don’t borrow too much
When borrowing from a bank or loan from a non-bank company, you should borrow exactly as much as you need. Before submitting the application, it is worth recalculating how much money you want to borrow and apply for it.
Christopher Wungs from the Department of Money and Banking at the Poznań University of Economics notes that the majority of Poles still adhere to the principle of spending Christmas ‘richly’. According to the expert: These holiday loans can be fatal, especially for lower income households. There may be a gap in your home budget that you will need to cover with something. So the question arises from what? With another loan? .
“Pawn and put yourself” is not a reasonable solution – especially when we use external sources of financing.
Resignation from the loan
You can’t take a free payday loan? Nothing lost. Another way to get a loan “almost” without fees is … to withdraw from the loan agreement within 14 days of its conclusion. Customers do not have to give a reason why they decided to opt out of the loan company. The lender can only charge interest for the period in which the money remained in the borrower’s possession.
Additional insurance is optional
In loan agreements, you can often find information about additional insurance. His task is to protect the interests of the borrower when he loses his job or falls ill. A customer who becomes seriously ill or suddenly loses his job usually has no financial means to pay back the debt. In such situations, theoretically, additional insurance protects the interests of the client, and the liability on his behalf is regulated by the insurance company. Sounds attractive? Not necessarily.
Most provisions regarding additional insurance are subject to certain requirements. It may therefore turn out that the insurance does not apply to persons employed under a mandate contract, but only to persons employed full-time (employment contract).