Economic Crisis

Posted by Yusuf on March 29th, 2017 — Posted in News

It is common to see ads on television, newspapers, radio and the internet of the appointed fast credits, i.e., those loans that granted certain financial companies in a very short time (24 or 48 hours), amounting to a relatively low and with few formalities and requirements, so it is almost enough to send a copy of the payroll and the DNI to obtain credit. The claim looks very attractive, but what? This advertising tries to draw attention to those people who need to deal with an urgent and extraordinary expense, and have no savings to pay their debts. It can also be attractive for those who already have different loans or credits and financial institutions refuse to grant them more, because your monthly family budget presents a balance virtually to zero. However, must be wondering if this is a good solution to deal with an expense or if, on the other hand, the only thing that will be achieved in reality is further increase the debt overhang of the family. What is that do I know? Quick loans should be the last option, since annual interest rates and expenses payable to the client are much more expensive than traditional loans provided by banks or savings. It is enough to compare the TAE (annual equivalent rate) of the different products on the market to know what is more expensive in global.

Today, fast loans can have an APR of more than 20% and traditional loans can be between 6% and 9%. In the advertising of these products always stands a relatively low and affordable monthly fee amount to attract customers. Now, we must not forget that this means that the loan will also be long term and, therefore, the final cost of the operation will be more expensive. It is advisable to request a binding offer to different entities in order to compare them and study them with peace of mind. All entities are obliged to deliver an offer with all the conditions of operation, and to keep it current for 10 business days, at least. It is essential to evaluate the real possibility of repayment of the loan and the need for the product or service that can be purchased, and not be carried away by the advertising.

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