Although the payday tickets without big are famous for the fact that we borrow a small amount, and sometimes give up twice as much, they are still getting more and more popular.
What do private loan companies use most as proof?
First of all, the fact that clients are blocked in traditional bank branches, due to lack of creditworthiness, or as a result of unpaid debts and entering the Credit Information Bureau. Clients who do not find what they are looking for in bank branches, automatically go to parabanks.
Parabanks also borrow money from banks. This is where they have the money to give money to private clients. According to data from the Credit Information Bureau, banks have already granted approximately 100,000 loans of small value to loan companies.
Poles perfectly remember the scandal of Amber Gold. Despite the poor opinion on this type of company, we are still eager to borrow money from parabanks, which according to the media are among the financial pyramids. Despite such a negative campaign for parishes, many borrowers are satisfied with the services of parabanks and with a clear conscience would recommend the use of payday loans to other people. On top of that, the questionnaires among thousands of clients speak for themselves. As many as 63 percent of people using private loan companies are very satisfied with them, while 29 percent say they are rather satisfied. Only 4 people out of 1000 respondents did not express a positive opinion on the subject of the time spent by parabanks.
When browsing online loan offers, we may encounter an APRC of several or even tens of thousands of percent. The fact that if we use the calculator that calculates the amount of the installment and the amount we will have to give back, they will not misrepresent us, they will only give us a precise rate. This is definitely the advantage of the parabanks, which has an advantage over traditional banking establishments. We can not use such useful tools on the websites of traditional banks.
We often hear that payday loans are used primarily to finally pay off other loans. It turns out that this is just a myth that was quickly blown out by the media and the so-called grapevine. So what do we most often use as a proof loan? As many as 65 percent of the respondents declared that they use payday loans to pay for current expenses, ie to buy food, clothing or other errands. After this group, we can see a very large drop in the number of people who spend borrowed money on the payment of bills. For this reason, no scouts take only 15 percent of respondents. However, 7 percent borrow money from parabanks to pay off other debts. This is a huge gap between the actual number of people interested in payday loans for repayment of previous loans and the number given by various media.
What else money from payday loans is spent on? Customers need a financial injection, for example, for a situation related to sudden illness, purchase of gifts, especially at Christmas, for educational purposes, purchase of household appliances, but also for sudden repairs, renovations or holidays.
Another myth is that customers who borrow money from parabanks can not use other sources of money. It turns out that this is just another myth. Because over ¾ of respondents said they could easily borrow the money from the family, from the bank, or make a debit on the account or use a credit card. Only 1/5 of the respondents admitted that the moment was the only option for them that was left to them. Customers usually pay their debts in parables without any major problems. You can also read a lot about debt loops, and as it turns out, only 2% of clients have problems with repaying loans on time.