The spiral of loans, or more precisely payday loans, is a problem that affects more and more people today. It usually starts innocently – from one. Later, the client of the loan company suddenly stands up against the wall: 30 or 60 days to pay off quickly, and it is not always possible to collect the appropriate amount for donation. hpvtruth.org for more.
Many people in this situation incur another payday to pay back the previous one. Although this method is gaining another 30 or 60 days, it is very likely that the situation will happen again. Especially if the borrower earns little or – temporarily – anything at all.
Many clients of lending loan companies fall into the spiral of such loans. How to stop it? What to do to pay off the existing liabilities without incurring another, similar one?
If someone insists that he can only get another loan, and payment terms chase him very much, he should not think about a long time loan, but about a long-term loan. It is easy to break down the debt into smaller installments. It is worth negotiating with a loan company, indicating what amount a customer can donate without any problems every month.
However, you must carefully read the offers of individual non-bank companies that provide long-term loans. If anything is unclear, it is worth clarifying the ambiguities with the company’s consultant or even asking the question by e-mail. If the answer comes the same way, the client will have a response in writing, which he will be able to invoke if necessary.
The amount and number of installments needed and the amount of installments needed by the borrower are essential. After establishing this data, you can sign a contract and consistently pay off installments, avoiding further obligations in similar companies.
Help family and friends
Sometimes people take a few moments because they think it’s a shame to ask for help from family and friends. This is wrong reasoning. Although maybe some people who think this way, are simply afraid to give their nearest profession, if it suddenly turns out that the time of repayment of the obligation will prolong for random reasons. However, this is a lesser evil – a relative will understand the reasons for delaying repayment faster than a loan company or a bank.
You can write a contract with a relative if both parties need such a document for their own peace and confidence.
Sale or pledge of valuable things? Or maybe consolidation?
When the situation with payday loans and their repayment becomes serious, we start, for example, to wonder what can be pledged in a pawn shop or sold. A car, RTV equipment, jewelry – you can quickly and legally cash in for debts. However, is this a good way? And is it enough to pay off all the debts?
In our opinion, be careful from the very beginning. If you really need to, it is worth thinking about the next moment, not about selling or pledging your belongings, but about consolidating payday loans. Especially if you have small incomes and 30 or 60 days is not enough to repay even a few hundred euros. Thanks to the consolidation of payday loans, we can combine all our liabilities into one and thus reduce the monthly installment, so that it is repayable for us.