The economy is slowly improving. For some people – mainly those at the forefront of the economic food chain – but too many people are still struggling to make ends meet. Salaries for those who are happy enough and have been able to find employment remain lower than before the recession, and many people noted that their previous good credit rating had fallen at a time when they were struggling to pay their bills. As a result, many previously available sources of capital have dried up to zero.
Bankers are still quite selective when it comes to approval for loans, leaving too many people at the mercy of predatory lenders and before having to pay exorbitant interest rates on loans that are based on terms that seem designed so that the borrower cannot deal with them help.
Our government claims that it is fully aware of the problems encountered by some lenders’ clients, which is why it focused on this industry some time ago to improve transparency, suppress exorbitant interest and generally improve the treatment of clients.
What is the conclusion? Take a loan or not, if you need it?
Don’t let this whole discussion about the harsh economic conditions and predatory lenders give the impression that you have no option if you need quick cash. On the contrary, need is the mother of invention, which is why the financial industry has come up with several options that may be what you need. If you have nothing to count on loans approved by the bank or from a different type of loan, it may turn out to be good because you even have an advantage and greater control over both the number of offers and loan options. It turns out that often even more than you can find a more traditional lender.
In addition, the time required to submit an application, obtain approval and process a loan will almost always be shorter than for a more standard loan, as the extra time needed for credit checks is eliminated.
You have money in your account often within minutes, not the days or weeks that are needed to approve a traditional loan. Assuming you need funds sooner than later, this is definitely a plus.
Loans have never been as cheap as now
The price war between competing lenders means that rates have dropped dramatically over the past few years, and despite a slight increase after the base rate increased in November 2017, lenders are again fighting for your attention. However, remember that even low-interest loans can have hidden costs. Before you choose the type of loan, decide wisely about one thing. How much for how long?
The formula is simple. Borrow as little as possible, pay off as soon as possible. To avoid complications, always base your loan on what you can repay conveniently (preferably after calculating the budget), because borrowing too much can cause debts to get out of control.