When Christmas was still a vision of the future, we wrote about how much interest in cash loans has grown during this period. Preparing Christmas Eve dinner for a large family, buying gifts, holiday trips – all this adds up to much larger expenses than in the rest of the year. Unfortunately, when the magic of Christmas passes and the loan agreements remain, you need to think about how to pay them off quickly and easily. Non-bank companies usually grant them for 30-45 days, so time is running out. Let’s check what possibilities we have.
Waiting for Christmas
The huge advantage of payday loans is the minimum of formalities applicable when arranging them. Loan companies understand that since we want to get the sum quickly, it is advisable to hurry, also when completing and verifying applications. This is the reason why institutions decide so often on online customer service – home loans, consisting in the fact that the cash for which we have applied for is delivered to us at the address indicated, significantly prolongs the whole process. Short-term holiday, the time when we do everything on the run and “for yesterday”, is granted within a maximum of 2 days. It is no different in this respect from cash loans taken at other times of the year.
Request for payday loans
We complete the application in which, most often, we provide our name, address, ID number, PESEL and source of our income, we send to a potential lender and we wait for verification. The decision can be obtained even within a quarter of an hour, especially if no one has reservations about our creditworthiness. If we already have any debts on our account (e.g. in the form of installments or other, yet unpaid loans), this will not affect the time of completing the formalities, but it cannot be ruled out that it will matter in the event of a decision on the final amount of the loan. In this situation, we must be prepared that instead of the 2000 PLN needed, we will receive 700 PLN. Lowering the loan value is a security for the parabank against any problems with its repayment. In store, as we must remember, it also has a debt collection process and a case being brought to court bailiff. But owners of payday loans for Christmas certainly already know.
What is the risk associated with a holiday loan?
Although taking loans for the holidays is a well-known practice (also by parabanks – promotional loan terms in December is not an accident), it involves some risk. Expenses around Christmas are usually higher than in other months. Therefore, if we decide to take out a loan, in principle, we apply for a larger amount than before. As a result, it cannot be ruled out that our home budget will be severely damaged by this or that we will have a big problem with paying our debts on time. It is very important for us to monitor the state of our finances on an ongoing basis, because only thanks to this we can predict (with high probability) whether we can settle the debt on time.
Both banks and loan companies do not trust clients who, without telling them anything, stop paying back their loans overnight. They look much more favorably on those who will inform them in advance about possible problems with the fulfillment of the contract. Such borrowers still have the chance to avoid costly recovery – all they have to do is submit a loan refinancing application (the strategy used, among others, by Wonga) or to extend the payment deadline. One solution is also to repay the holiday loan with another loan, but this step needs to be carefully thought out. The plan will succeed if, for example, a loan for 30 days in Vivus is repaid with a loan in Lendon granted for 45 days. We gain an additional 15 days to settle the liability, but with another lender. Let us remember, however, that such behavior may cause us to fall into a spiral of debts, from which it will be more difficult for us to get out than with a holiday loan.
How to repay a loan quickly?
There is nothing to hide, fast repayment of the loan usually involves its timely and even earlier settlement. What to do if we have a problem with this? It is too late for a loan with a guarantor, so there is no reason to count on the support of the guarantor.
An option that is worth considering at this time is a consolidation loan, which is sometimes, like a loan with a guarantor, the only way out for customers who have some debt on their account. We can also try to borrow money for repayment from family or friends (such courtesies are not interest-bearing and do not generate further costs), or consider the quick sale of material goods we have: car, electronic equipment or jewelry. We will definitely lose on this, but we will avoid starting a debt recovery procedure against us, which would only increase the amount of our payday loan for the holidays.
The household budget can help us
If we decided to regularly maintain a household budget, e.g. with the help of Exel, it would be wise to include in it the category of repayment of installments and loans. First of all, we will estimate in advance whether we will be able to pay off the loan quickly on time. Secondly, we will quickly see the areas of life that consume the most of our money – we will make cuts in them to obtain the cash needed to settle the debt. We have no influence on the amount of rent, but the amount of water, electricity and gas bills – yes.
It also depends on us what sums will be allocated to transport per month (choice: car or bicycle?), Food (cooking at home or going to a restaurant?) And pleasure (watching a movie at home or in the cinema?). Resigning from certain purchases and activities temporarily or permanently will save us several hundred zlotys every month. Considering the amount of payday loans for holidays, usually not exceeding PLN 2500-3000, we will be able to quickly repay the loan without having to extend the deadline and requests for additional financing.
The most important thing about Christmas days is that they don’t follow us until next Christmas. There are many methods of their repayment: from consolidation loans to home savings. Which path we choose depends not only on our financial situation, but also on self-denial to get rid of debt as soon as possible. None of us wants to start the New Year with an entry in the National Register of Debtors.
Let’s measure strength on intentions. Living for the moment in finance is not a good solution.