The use of quick payday loans has exploded in recent years, and this is well understood. The great advantage of borrowing money in the form of a quick payday loan is that it is to a great extent bankrupt and that it is much easier to borrow money in this way than, for example, by going to the bank. If you are missing money, you can in some cases have the account filled up already later the same day that you have applied. It just requires completing a simple application online, sending it off and waiting for a response, which often comes within an hour. Easy? Yes. Dangerous? Maybe.
You really need to know your financial constraints before borrowing
The mortgage loans do not have the best reputation, and with the high interest rates and fees on the fast loans, you may want to spend a break before borrowing money in this way. It can almost be too easy to borrow money in our digital age, and if you end up unable to repay your loan, you are suddenly in big trouble. Studies show that 40% of quick-loan applicants canceled their loan. Nevertheless, in 2014, $ 430 million was lent out in the form of 160,000 single-rate loans. Over half of the borrowers had not considered other alternatives before taking their quick payday loans. This is something that you want to change so that fewer people end up in the future suffering from a financial cat agony.
The figures speak their own clear language, and on the basis of these figures it has now been decided in the Folketing that before a quick payday loan can be taken, a report period of 48 hours must be given. This should make consumers consider the actual borrowing requirement and possibly think of other alternatives before borrowing money in the quick and easy way.
Consider the maturity of your quick payday loan
In this case, a quick payday loan should not be mixed with the larger consumer loans. A repayment loan is a loan that is, in fact, a type of consumer loan, but which has a short maturity of a maximum of three months. Consumer loans can have much longer repayment periods. The short term on the quick payday loans can tease some borrowers, and if one is unable to repay the money in a timely manner, one can end up in a fee trap. In fact, roughly every fourth borrower exceeds its repayment deadline, according to the Competition and Consumer Agency. This results in several poor payers in Denmark who cannot repay their loans. This, of course, would like to try to put an end to this from the Folketing. One will try to do this by giving consumers a two-day long break before they can finally sign and borrow money through a quick payday loan. The hope is that consumers will then consider whether they can actually repay the loan and possibly think of other alternatives that may be cheaper in the long run. It should therefore be a less spontaneous act to borrow money online and hopefully a more well-founded and responsible decision, which can ultimately make Denmark a country with fewer poor payers!