The wealth of the average family still leaves a lot to be desired. The prices of services and products necessary for life are systematically rising, and our wallets do not always keep up with the day-to-day expenses. Planning a home budget can be extremely difficult sometimes and it is not easy to talk about saving.
The implementation of far-reaching plans and the realization of dreams often involves the need to fund your home “piggy bank”. Motivation to apply for additional funds in financial institutions may also be unforeseen random events.
Bank loan or payday installment?
The banking procedures necessary to conclude credit agreements often deter intricacy and complexity. Acquiring the necessary certificates, verifying income and completing documentation related to applying for a bank loan are associated with (often long) waiting times for completing all formalities. Meeting the necessary requirements also forces many visits to the lender’s office. Legal regulations to which banking institutions are subject oblige to thoroughly trace the borrower’s creditworthiness.
Any adverse verification may become a reason for rejecting an application for cash at the bank. Non-bank loan companies can be a convenient solution to such situations. The activities of these institutions are governed by the provisions of the Civil Code and, like banks, are subject to the supervision of the Financial Supervision Authority. However, they do not have to comply with the same procedural restrictions, and their regulations are more liberal about the client’s creditworthiness. For this reason, products from the offer of loan companies are enjoying increasing popularity. One of them is payday installment, which in its form resembles a loan taken from a bank.
Payday loan and installment payday – how do they differ?
The term payday is called a short-term loan offered by non-bank financial institutions. It is usually quick cash help provided on a simple, transparent basis, whose one-off, total repayment is required within the time specified in the contract. The maturity of such a commitment is usually around 30 – 60 days, which significantly limits the amount of amounts that can be obtained. In practice, this means sums not exceeding several thousand dollars. It looks a little different when concluding an installment contract. The difference is in the form of repayment of the liability incurred and the ceiling of the amount of debt offered. Contract conclusion procedures are not complicated. It is becoming common to conclude such contracts without leaving home and using online applications.
What are the conditions for paying the installment payday loan?
The rules for repayment of installments should be described in detail in the contract. Usually, this applies to the division of debt into equal parts that are due within a certain period of time. The installment payment schedule should clearly specify:
- installment amount
- number of installments payable
- repayment frequency
- their due date
- other repayment terms
Repayment of the installment payday loan depends on the amount of the loan granted. We can talk here about amounts of up to several tens of thousands of dollars. Therefore, the amount and number of installments proposed for repayment and the frequency of their payment may vary. For smaller loans, a weekly payment method is often practiced. Higher liabilities are usually covered by the monthly installment schedule. The due date of subsequent installments can be negotiated at the time of signing the application. Loan offers are flexible and adjust the repayment dates of subsequent installments to the customer’s convenience. When analyzing the installment payday contract, you should carefully look at the other conditions regarding its repayment. They specify, among others, the amount of penalties imposed for the borrower’s delay.
Loss of financial liquidity to pay installments can become a cause of considerable trouble. The company’s experienced team of loan brokers offers effective help in getting out of the debt loop. Comprehensive knowledge and possibilities of negotiating credit agreements with employees of financial institutions at the decision-making level become invaluable support for a troubled borrower.