Make a small reform at home, change the kitchen or face unexpected expenses are situations that many people face and with which a question arises: is it more convenient to extend my mortgage or request any of the payday loans available in the market? When needing financing there are those who think that since they are paying a mortgage every month, the easiest thing is to expand it and thus have a single payment. But be careful, because this thought if done without comparing can lead you to be overpaying.
Having debts nowadays is something almost inevitable, who more or who less has a mortgage, the letter of the car or some other product bought in installments and maybe even some pending charge of the credit card. This situation means that at the beginning of the month the money that is available in the account remains below 50% of the amount received, and there are still other expenses to be met, such as electricity, water, food, etc.
What are payday loans
Logically they are credits that are processed in a very short time. Now, how much time is considered a quick personal loan? There is no rule for it, but just as the loan market works right now, fast personal loans are those that deposit the money in your account practically instantaneously, or at most in 24 or 48 hours.
In addition, they have another service that differentiates them from other loans in the market. In the payday loans the company that grants the credit can answer to its client in only some minutes, in occasions, which takes the client in filling out a form.
And this is a fundamental characteristic, since there is a big difference between loans that take 24 or 48 hours and loans that are granted almost automatically. Said in a vulgar way, in these last credits the companies grant financing to anyone who requests it as long as it meets minimum requirements such as residence in the country, have a telephone number and a bank account in the name of the borrower and not appear in no record of defaulters, although this last feature is not always mandatory.
Are the personal loan companies crazy?
Not much less. It is true that with the information they handle, the credit risk assessment is complicated or even impossible, but they more than compensate it with high interest rates that apply to everyone, regardless of their reliability as a borrower.
Why these financial products are more expensive
Personal loans are especially expensive, but you have to admit that they are, because the companies that lend their money risk a lot, because they do not study the borrower’s conditions too much.
In addition to not receiving your money back, your expenses include all claims processes that involve defaults, often with judicial processes included. Also due to this, generally the amount of credit granted to customers who request it for the first time is usually quite low (in many cases less than € 1000). To access higher amounts you must show that you are a good payer by returning earlier smaller credits, of course all of them with equally high interests.
On the other hand, if the other loans are not so fast, it is because the companies that grant the loan conduct a study on the situation of the borrower. By doing so they can adjust the interests much more to the particular situation of each borrower without having to adjust upwards.
When to go to them
The answer to this question is very simple: when there is no other choice.
How to solve the financial problem of fast payday loans
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Unfortunately it is possible that throughout one’s life, one has to resort to quick personal loans. Although it is something that should be avoided, we must not break down when it happens. If you had to do it, you do not have to whip, ask for the credit, get the money and pay what you have to pay.
Quick personal loans are necessary in the financing market, but they are an expensive financial tool, which should only be used for very specific situations. When there is no choice but to resort to these loans, what the consumer must do is to refinance them as soon as possible, to pay lower interest rates.
Among the possibilities that the market offers to get this refinancing, there are the credits in bitcoins. As always, the best recommendation we can give you is to study all the options and do it with a calculator to decide as rationally as possible. As soon as you can, you must refinance the debt. For this, choose the lowest interest rate you can get.