There are unforeseen situations in life. This is especially true in the least expected moment. Despite the carefully planned finances, it may happen, therefore, a random situation that completely disturbs the home budget, and even at the same time may lead to its preservation. Such situations can not be predicted, even when we show small savings. The situation is particularly painful if our domestic investments are made from external funds, i.e. payday loans or bank payday loans. Consequently, there are difficulties in obtaining new, free resources. Not everyone, however, has a family from whom he can borrow money in a crisis situation. Then what? The situation is not as hopeless as it might seem at first glance.
Why not from a bank or other institution?
It is easy to imagine a situation in which there are many Poles every day. Immediately after taking a bank payday loan or consolidation payday loan, an unexpected expense appears. We are forced to organize bigger or smaller cash in a quick way. What possibilities appear in our head? A payday loan from the bank, if we have the creditworthiness to a higher amount. What if, however, we do not have such an option? The second, commonly used option are payday loans from friends or family. However, they have a significant disadvantage that firstly they are exposed to family rumors and, secondly, the amounts of such payday loans are usually not too high. All this means that many people are discouraged from borrowing from the family. You can not be surprised by such views. Another option, much more risky are payday loans from a couple of banks.
It is risky because institutions of this type often charge huge interest rates of up to several thousand percent. This makes repayment on time, with other financial commitments, practically impossible. Many people in the search for quick funds fall into the loop of bank payday loans, from which it is very difficult to leave a defensive hand. There is still a payday loan option available on the market. And if we have movable property, it can work, it’s hard to get more cash, leaving small jewelery or electronic equipment. Lack of repayment on time, i.e. the purchase of a pledge, may result in the loss of a thing that was pledged below the market price. This is unpleasant, especially if it concerns family souvenirs or gifts. By inadequate value for the price of the pledge, it is worth avoiding this type of method to obtain cash.
Where to get knowledge about the sources of financing?
When looking for solutions to financial problems, we will search Internet forums, classifieds websites or even browse the traditional press. You can find there a huge number of ads from banking institutions or pawnshops. Among them, however, there may appear an advertisement for this type of content: “I will grant a private payday loan quickly and without checking”. Private payday loans are becoming more and more popular because they completely bypass banking institutions and the banking couple, thanks to which the profits are exchanged directly by the lender and the borrower. This allows you to minimize the cost of the transaction. It is worth analyzing deeply the topic of private payday loans.
Advantages of private payday loans
Private payday loans are less expensive for a person taking a payday loan from other methods outside the bank. On the other hand, bypassing the whole system also results in increased profits for the lender. The current banking system works in such a way that a person with excess cash places a deposit in the bank and receives a percentage as a matrix. Meanwhile, a person looking for cash gets the debit to a higher percentage to meet their needs. The difference between the percentages is the bank’s profit reduced by operating costs and other costs. By opting for a private payday loan, the whole system is bypassed and the percentages are negotiated. This allows for a compromise between the parties to the contract, so that they are satisfied. By avoiding operating costs, it is easier to find a compromise. Another advantage of omitting the banking system is the time advantage.
I will provide a private payday loan quickly and without checking the bases
Two parties to the payday loan agreement can get along even in a few minutes to sign a contract, in the banking system it is a long and arduous estimation and expectation. It is therefore a good solution for people who care about time. And as you know, when you are in a difficult and unexpected situation, often there is no time to deal with banking formalities and search for appropriate certificates or insurance. The signing of the contract and the cash or non-cash exchange can take as long as several minutes as long as both parties are in agreement.
What is more important is the simplicity and clarity of the contract? Compared to payday loan agreements in a bank, the alternative to a private person is simple and easy to understand. To sign it is not necessary even a lawyer, and ready forms can be found on the network. It is also a good alternative for people with unfavorable credit history – private individuals do not use the Credit Information Bureau , thereby incurring the risk of transactions in exchange for increased transaction profits. As you can see, private payday loans have many advantages, but do they have any, which exclude them? Do they generate threats?
Threats and defects of a private payday loan
As you can see above, the advantages of private payday loans are mainly for people taking out payday loans? However, this form also has its drawbacks. If someone chooses an advertisement from the forum, I will give a private payday loan quickly and without checking the databases, it is easy for a dishonest fellow to bring a case in court or get a bailiff’s job. Especially in the era of online courts. Debt can also be sold to debt collection companies. The last advantage of these, and therefore the inability to check the credit history of a person, is a threat especially to the lender. It is difficult to estimate whether the profits will be adequate to the costs incurred, and the borrowed funds will be recovered. This is the key risk borne by the lender. There are also other possibilities that a person will not start paying off the money. Many people also try to lend money only to friends, to minimize this risk.
To sum up, private payday loans are an interesting alternative to other methods of obtaining funds. However, they should be provided in a rational manner and with all caution.