They will help to extinguish the fire, but can also cause a big trigger. What are the typical loans before payout and what should you be careful of before applying for one?
Life from paycheck to paycheck. For how many Czechs is counting every crown daily bread and do not have financial reserves? This then suffers an unexpected expense, such as a broken car we need to work, and a few thousand are inevitably missing. We are easily tempted by the so-called loan before paying. It looks like an ideal solution. The companies that offer it look so understanding! They don’t make big pants with verification and quickly lend the money we need. But every coin has its back and face. This quick loan can really pull you off the heel. Consider all risks before applying for it. We summarized them for you to five points.
1. Note that you pay extra for the loan
You can get up to CZK 5,000 almost immediately on your hand or bank account. In addition, the negotiation is so simple! Somebody doesn’t have that. But it’s something for something. The 5,000th border is justified – it is a threshold for which the maximum amount of APRC may not be respected. Therefore, the cost of the loan depends on the provider. So for a thousand crowns you can pay a third extra on interest and fees, some even 50%.
2. Pay the loan on time, otherwise you are in trouble
The so-called pay-out loans are special compared to ordinary loans in that the debtor has only 30 days to pay them. If he can pay his money in time, he will only pay what he has agreed with the provider. But companies rely on you getting into a repayment delay.
And then there are hard sanctions, fees and interest on arrears. They will send you a reminder somewhere (it may be for a fee), and elsewhere they will charge you a daily interest for late payment, and somewhere they will hand over your outstanding balance to a collection agency that will collect it. So d Lužná amount can increase severalfold.
3. Do not ignore business terms
Clearly and briefly? Not quite. The microcredit terms generally reach several tens of pages. It will take you a while to get through to the sanctions. In most cases, it is not just the scope, but the formulation. The language is chosen intentionally so that you do not understand it well and the trader has the ability to weave when it comes to breaking bread.
4. Be careful and defend your debt trap
For low loans up to CZK 5,000, the creditor is not required to assess the ability to repay and examine your credit history. Many of them also do not do so and present it to the crowd as a great advantage. No view of registers, no income statement. He even lends to those on whom execution is being conducted. However, this is where the indebted persons who reach these loans most often get even more financial problems.
5. Don’t rely on the law, it won’t help you
CZK 5,000. Magical boundary to which the Consumer Credit Act does not apply. Thus, people lose many of the benefits that come from the law. For example, you cannot use the statutory 14-day withdrawal period without stating the reasons and you cannot often repay the loan prematurely.