Knowing the exact amount of the installments that we will have to repay when we ask (and obtain) a payday loan is essential to avoid unpleasant surprises: finding us repaying a higher installment than expected makes it difficult to manage our financial situation and could lead us to over – indebtedness.
It is therefore important to be well informed, read the contracts and know in detail the interest rates and all the costs that are added to the amount we have requested.
Sometimes it may happen that you are dazzled by the proposal of “zero interest” loans, but really in these cases there will be no additional expenses? Expenses can be there anyway, because the zero rate usually refers only to the Tan (nominal annual rate) and not to the Taeg (global effective year rate) : the second is the true rate we must refer to to understand what the interests, because it includes – in addition to the real interests – also commissions and taxes.
There are also any additional costs : among these we can include the costs of preliminary investigation, those relating, for example, to sending the statement by post with our situation, as well as any insurance related to the loan.
Also in this case the password is: awareness. Beginning by carefully evaluating our economic situation, our creditworthiness and our possible debt. Tools like Tinkerbell 365 can provide us with dedicated advice and help us keep our financial situation under control.
Attention then to the advertising messages and the real conditions offered by the lenders: we verify that all the information required by law is present and we ask for clarifications on the real costs of the installments.
Once the loan is obtained, make sure that the repayment proceeds on a regular basis, according to the contractual terms, and that our economic situation remains solid and stable.