Payday advances, along with other lending that is short-term. Exactly what are pay day loans?

Payday advances, along with other lending that is short-term. Exactly what are pay day loans?

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Payday advances are a kind of borrowing called "high-cost, short-term credit". You borrow between ВЈ50 and ВЈ1000 and spend the loan back with interest, in one single payment on or right after your following payday. This sort of borrowing is commonly more costly than several other kinds of credit.

There are more forms of short-term financing, including:

  • instalment loans – repayments are spread regular or month-to-month over several repayments, typically between three and a year
  • ‘running credit’ or ‘flex credit’ – the way in which this works is comparable to a bank overdraft, borrowers and offered a 'limit' they can set up to as an if they need certainly to, provided they spend at the very least the interest off every month. This type of credit is expensive and intended for short term use only while the credit agreement has not fixed end date.

Kinds of complaints we come across

We have complaints from customers whom inform us that loan providers:

  • lent them cash without checking they could pay for it, and today they will have lots of additional interest and costs which they can not pay
  • had been unreasonable or unjust whenever their situation that is financial changed
  • were not clear about whenever re payments had been due

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