It is natural that by taking a payday loan, installment loan or cash loan, we would like to give back as little as possible. Many people still see online loans as very expensive. It is true that the cost of such loans is definitely higher than for a bank loan, but they do not come from nowhere and are for clear reasons (see the article “High costs of payday loans – for what and why do we pay?”). Smart and well-planned loans can help reduce these costs.
Get to know the inside loans – use comparison websites
Non-bank loans are very similar – both in technical terms and, at first glance, also in amounts. So it seems that no matter which services you use, the effect (and cost) will always be the same. This is not entirely true, although the fact is that many non-bank institutions have stopped at a similar level of offer and price, but there are also many that lean out in one direction or another, and additionally offer other conveniences that in general will allow for a cheaper loan.
The average borrower is not able to keep up to date with offers and costs on his own, which is why invaluable help is using the tools created by Gandalf: cost comparison, loan rankings and thematic articles. Getting acquainted with all of them will allow the borrower to be up to date with current promotions and cost fluctuations, but also to easily compare the offers of most available loan companies and compare them with the market average. Payday loans are currently different, but are usually in the range of 18-27% of the loan amount.
Stay up to date – follow promotions
The loan market is one of the most dynamically developing, which means that growing competition requires systematic increase in the availability and attractiveness of loans. Acquiring a new customer is therefore at a premium, so loan promotions will appear more and more often. They will not only be periodic promotions (e.g. holiday), but also seasonal, occasional or separate from any event. In such situations, loans are always the most advantageous, although sometimes directed only to regular customers of the company. The availability of the promotion argues that before taking out the first loan, familiarize yourself with the policy of the non-bank institution and its offer, so that you can enjoy bonuses with each subsequent loan. It is worth adding that loyalty programs of loan companies will not only apply to larger amounts of loans, but also to the reduction of commissions and even direct cash withdrawals.
Free payday payroll – always profitable?
It’s hard to talk about lowering the cost of the loan if there are simply no such costs. The fact that you can borrow completely for free, if you give away your loan on time, is a major advantage of non-bank loans over traditional loans. The only disadvantage of a free loan is that you only have to pay new customers and the repayment after the deadline will be charged with standard payday expenses. For this reason, but also for the sake of perspective thinking, it is worth familiarizing yourself with the price list of a particular institution (see what are the costs of paid payday loans: “Second payday loan in the same company – where is the best?”).
More sometimes means less
Those who are thinking about taking out an installment loan usually do not think about the costs, but are wondering what monthly installments they can afford. A lower installment and a long repayment period, however, means a higher total cost. Also in this case loan comparison websites will help, which will help you find the cheapest loan in general, but it is worth remembering that installment loans will not always have a lower overall cost that will be more financially advantageous. Fewer installments and their larger amounts mean less money to give away, but also greater difficulty in accumulating the right amount of money, and thus – risking late payment and penalty fees. So it’s good to recalculate loan installments more in terms of financial comfort than the overall cost, and in addition, find out whether it is possible to defer repayment of installments.
Refinancing – an expensive way out of oppression
Refinancing is a river topic. Its advantages and disadvantages could be mentioned endlessly, but two issues are certain – this is an option that lenders use very willingly, but it is also quite expensive. It is customary to pay the same amount as the loan for refinancing the loan; it can therefore be assumed that in this case the costs will increase by 100%. It is good to refinance (or extend the repayment period) if possible. Of course, the availability of such a possibility works as a plus and it is a good gate that helps to avoid debt and debt recovery. But it is worth thinking about the probability of using refinancing before taking a loan and assess how realistic it is to accumulate the right amount of money within the allotted time. If the bills give the result “somehow it will be”, then for your own peace it is better to settle for an amount less than expected. This will not only reduce the cost of the loan itself, but also avoid additional fees.
Measure strength on intentions …
Every financial liability is a liability, both financially and legally, but also civil – after all, in most cases we are responsible for a quiet life of our own and our family. A way to reduce costs will therefore be primarily responsible lending, in amounts adequate to its capabilities.