Short-term loans is the most important product of loan companies as well as commercial banks. However, the most payday loans are served by loan companies, especially popular on the Internet. What is the characteristics of payday loans and what is worth knowing about similar groups of liabilities in relation to the latest legal changes?
Basic information on short-term loans – payday loans
Payday loans is a short-term loan focused on one-off repayment with interest. The speed of settling the liability is one of the most important advantages of debt, because payday pay does not really make the household budget dependent, but gives you the chance to improve liquidity, e.g. while waiting for a transfer from your employer. The liquidity of withdrawals in Poland is at a very poor level. Typical delays are on average two or even three months depending on the industry, so payday pay is excellent support for similar households. Most payday loans have a deadline of 30-45 days with the option of extending the repayment period. This is a kind of security gate for borrowers who are not sure of their economic situation in the next few months. Payday loans is part of the standard of the Consumer Credit Act.
Current legal changes for payday loans beneficial for borrowers
Loan companies grant payday loans in accordance with legal standards that have recently changed in favor of borrowers. Why? First of all, the legislator has limited the limits of additional costs in short-term loans agreements, which gives you the certainty of using a fair commitment. Nominal interest rates and non-interest costs are statutorily regulated issues to specific amounts. This increases the security of using similar forms of debt. Payday loans is a good tool in the hands of an economically responsible borrower. It is particularly profitable debt in the period of low interest rates.
Payday loans – Is it worth it?
Payday loans is a loan still dedicated to people with positive creditworthiness, and not to clients in difficult economic conditions. Positive changes in regulations have led to the purification of the industry and to a greater interest in payday loans.