During the holidays, you want everything to be perfect. That is why everyday problems, such as short-term money shortages, become especially noticeable during the holidays. alasyciagranada.com has more information
When money is needed for important and thoughtful purchases, one solution to the situation is borrowing. Is a quick holiday loan a responsible move? Find out in our latest article and learn how to borrow wisely in every situation!
Holiday loan: the pros and cons
Before borrowing, it is imperative to evaluate all the pros and cons of a loan in order to avoid any negative consequences. Every trusted creditor recalls that responsible borrowing is a basic principle of the fast payday loan industry. Credit is for urgent, unexpected spending, not impulsive purchases and the whims of the moment.
Does this mean that a quick payday loan is by no means suitable for a holiday? It depends on two factors – the purpose of the loan and the financial situation of the borrower.
Celebration on Credit: Yes or No?
Rarely does a creditor ask for a loan application for the reason for the loan. Consequently, you can borrow for a variety of goods and services, including holidays. The extra amount of money can be very useful if you want to buy original gifts, have a rich holiday table or go on a holiday with your family. But fast payday loans are not just a handy source of money, they are a serious financial transaction that imposes strict credit obligations. If you want to use a quick payday loan for the holidays, make sure it’s a smart solution! A credit can be useful if:
- You can pay most of your purchase, but you are missing a small sum;
- the loan will not create a gap in next month’s budget;
- You are convinced that the item you want is really needed by you or the recipient.
During the holidays, there may also be unexpected expenses that are not related to the organization of the holiday. If you need extra money to pay for sudden repairs, medical treatment, to purchase medication or other vital items, a quick payday loan can be helpful.
A quick payday loan will not be appropriate if you need cash:
- a big purchase that you can’t afford with your regular income. For example, if you want to buy a luxury gift item, a better credit option will be a consumer credit or a credit line – long term loans with more flexible repayment terms;
- for a thoughtless purchase. Before borrowing, it is worth researching the market to find out where the desired product or service is available at a lower price. Borrowing impulsively can lead to serious overpayments, as the item you want in another store may cost significantly less.
The loan amount is also important. Read on to learn how to match your loan volume to your monthly income!
An adequate loan for your budget
During the holidays, a quick payday loan can help you cope with unexpected expenses, but every potential borrower needs to assess his or her solvency before borrowing. Regardless of the purpose for which the loan is used, borrowing is only available to persons with a stable and sufficient income. In most cases, the quick payday loan has to be repaid within 30 days, so consider the amount of credit you have with your ability to pay off with your creditor on time. We recommend that you follow the guidelines for responsible borrowing:
- the total amount of credit, including interest and commissions, may not exceed 30% – 40% of monthly income;
- after the loan has been repaid, the borrower must have enough for his regular daily expenses: paying bills, buying food, etc .;
- applying for a loan should not be impulsive, it is best to spend at least one day analyzing and reflecting on the situation.
A quick payday loan is a short-term loan, so the borrower’s solvency is vital. The higher your monthly income, the easier it is to repay your loan within 30 days. If your income is average or low, the credit limit for a quick payday loan will be significantly lower, but in any case, the loan must be repaid at maturity. Even if the amount of the loan is only a few tens of euros, the lender is entitled to a penalty for each day of delay in case of a breach of credit. That is why the need for credit has to be assessed very carefully – borrowing money can be thrown away in the wind, but the loan will still have to be repaid in full.
Loan on application date
Currently, fast payday loans are the fastest service in the consumer lending industry. If the borrower meets the creditor’s requirements, the required amount can be obtained in less than half an hour. Applying for a loan is done online, on the lender’s website, although many lenders also provide other options for applying, either by phone, at the post office or in person. To get a loan, you need to do the following:
- Fill out the credit application, indicating the amount and term of your loan.
- wait for the text message with the lender’s decision;
- in the affirmative, get the money in your bank account.
The full amount of the quick payday loan is transferred, so you can make the necessary purchases on the same day. An alternative to a quick payday loan is the credit line we offer as a non-bank lender to the Bolkonsky family. The credit line has more flexible repayment terms and a lower interest rate. If you need a one-time loan for a particular purchase, a quick payday loan can be a handy solution. But if you are looking for additional financial support that can be used in the long term, a credit line is a better choice.
To make an informed and more beneficial choice, always read the terms and conditions of the credit agreement and in case of doubt contact the lender! Bolkonsky family recalls borrowing responsibly, assessing your chances of repayment.