Month: March 2019

Loan costs calculation

by Bonnie Morgan

Loan companies providing payday loans almost always place on the Shenon Morge home page, which are used to calculate the cost of the loan. When choosing the appropriate amount and date of repayment, the total cost of the loan along with APY ( real annual interest rate ) is obtained on an ongoing basis. Most often, there is also a nearby link to the " information form ", which contains all the most important data on the current loan offer.

Analyzing the offers of many loan websites, it can be seen that in many of them, the total cost of the loan consists of a commission (which constitutes the vast majority of costs) and interest. Not every customer is aware of it, so the marketing message about a " zero-interest loan " may mislead it (the customer assumes that the loan is free).

By the way, it's worth answering the question how is it really with this " free loan "? Is it just a marketing slogan with a hidden hook or a real bargain?

Such a promotion does exist (currently, basically the majority of companies operating online) and means the possibility of giving only the amount borrowed (APY is equal to 0%). The repayment must be made within the set deadline - this is the only condition to take advantage of such a promotional campaign, which is only addressed to new customers borrowing in a given company for the first time.

What does NOT include the APY?

What does NOT include the APY?

In a nutshell, the costs that are associated with the client's delay. These include, for example, penalty interest or payment for prompts. Their maximum height is regulated by law, as are the standard costs of payday loans.

In conclusion, online lending offers are usually legible and do not contain "traps". However, this does not mean that everyone on the non-banking market acts honestly and ethically - by signing a contract you should always be vigilant. If you are not sure about financial or formal conditions, please contact the company's customer service office or opt out of the loan idea altogether.

Financing the end-of-year period with a loan

by Bonnie Morgan

One of the consequences of the economic crisis is that more and more people have experienced financial problems. After all, it is not possible in all cases to find a good balance with your monthly expenses with less or even no income. In certain cases you can (temporarily) reduce your need for money by taking out an additional loan or credit. Loans and credits are provided by various banks and other financial institutions, which in turn offer various types of loans. Today, more and more people are turning to this lender to help finance the expensive December month.

Borrow money with limited income

Borrow money with limited income

A lot of people are afraid that borrowing money is not an option for them, or that it will even entail major risks if they have to make ends meet on a limited income. However, the options and risks depend entirely on the personal situation. For example, you can focus on lenders who have specifically focused on providing loans and credits:

  • to people with a lower income,
  • with fewer conditions,
  • in combination with expert guidance.

Which loan method is most suitable in a specific situation depends on various factors such as:

  • do you have the right papers to borrow money,
  • do you have a chance of a job in the short term,
  • you have a prospect of a permanent contract in the short term.

You can also increase the chance of a loan by choosing:

  • a short-term loan,
  • a small loan.

By opting for short-term and / or small loans, you generally also save on administrative effort and time.

Different types of loans and lenders

Different types of loans and lenders

In our country, the best-known loan form is a loan from a regular bank. In addition, you can also choose another borrowing method, such as:

  • apply for a mini credit with an online lender,
  • opt for microfinance,
  • take out a revolving credit,
  • apply for a credit card,
  • collect money through crowdfunding,
  • borrow from a credit bank.

However, you must always take into account the fact that every lender uses different loan conditions and that every loan also entails different conditions. With a low income you choose the best option for an online lender because they often want to lend you money if you are registered with the CKP. You also prefer to opt for a small loan amount because you will be confronted with less strict loan conditions.

Legal conditions and risks lend low income

Legal conditions and risks lend low income

A low income does not necessarily mean that you cannot borrow money. To be able to take out a loan, you only need to be 21 years of age or older and have an income of your own. Although borrowing money with a low income is therefore possible, the question remains whether this is really sensible.

Borrow money for the end-of-year period

Borrow money for the end-of-year period

So if you want to borrow money to finance the end-of-year period, it is wise to check in advance whether you really need this money. You must also calculate how much money you could possibly release in the short term. Taking out a loan always costs money and also entails certain risks. After all, with a low income you are not waiting for even more financial worries.

In many cases it is not even necessary to take out a loan to finance the end-of-year period. For example, you can use your savings to cover the costs or take out a small loan with family or friends. In all cases, you must of course check whether you cannot reduce the costs of the end-of-year period, for example by:

  • purchase less expensive gifts,
  • spend the holidays at home or with loved ones instead of eating out,
  • skip the purchase of new Christmas outfits for a year,
  • reduce the costs for fireworks, champagne and other superfluous luxury, or even eliminate them altogether.