This type of loan is most popular among the young people aged 20-29 and least popular among the 50-59 year olds. According to the study, it is both students, people in work and unemployed who take out Personal Payday loans. However, the trend is greatest among consumers outside the labor market. Furthermore, the study also shows that people with poorer personal finances tend to take on Personal Payday loans.
More expensive than expected
The Danish Competition and Consumer Agency’s investigation shows that for just over 40% of Personal Payday borrowers, the loan ended up being expensive than expected. A large proportion of the loans are either extended, defaults or sent for debt collection, which means that the loan ultimately ends up being expensive.
Alternatives to Personal Payday loans
The best alternative to a Personal Payday loan is not to borrow money and save money instead. However, there may be situations where you need to borrow money. Under the category of unsecured loans, we also find the more traditional consumer loans, which are typically offered by banks and finance companies. This type of loan often offers much lower interest rates and other terms and conditions.
A no may be best for yourself
Whether you want to borrow a Personal Payday loan or a consumer loan, the lender makes a credit rating for you. However, the Danish Competition and Consumer Agency’s investigation indicates that the merchant loan providers operate with a somewhat more scarce credit rating compared to the banks. Therefore, you will typically find it easier to get approved for a Personal Payday loan. But a thorough credit rating is in everyone’s interest. So if you find that the banks reject your application after making a credit assessment, then it is in fact enough for your own good. A refusal is often due to the fact that the lender estimates that your finances cannot bear to repay a loan.
Always remember to investigate the market
As borrowers, it is your own responsibility to investigate the market before you accept any loan offer. That way, you increase the chances of thanking the best offer. At Good Finance has made it easy and easy for you to obtain and compare personal consumer loans. You just fill out one application, after which we collect personal offers from several banks and finance companies that you can easily compare. Then you just pick the best loan.
Then you have plans to take out a Personal Payday loan, so consider just one more time and examine how Good Finance can help you. It is of course free and non-binding to apply.
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