At the outset, it should be noted that, contrary to what is commonly believed, payday loans are not always expensive . Under the condition of timely repayment , we do not have to fear unexpected costs, especially after the implementation of the provisions of the so-called anti-usury act.
It is also worth noting that not all loan companies offer an extension of the repayment date . Therefore, be careful about the deadlines and, above all, do not take out a loan if you are not sure about the possibility of repayment after a certain period of time.
The interest rate and the total cost of the loan
The interest rate is only a component of the total cost of the loan . The APRC is used to determine the total cost, which means the actual annual interest rate showing the relationship between the total cost of the loan and the amount received. This value is given as a percentage.
The APRC is a relatively objective way of comparing the costs of various payday loans online, but it is not readable and does not always tell us whether an offer is expensive or cheap. To make it easier, companies calculate and show how much money will have to be paid each time for a specific amount and date.
Sample cost of payday pay
What do the specifics look like? If we assume a loan amount of USD 500, contracted for a period of 30 days, then the total cost of online payday loans will vary significantly depending on the company, however it will be in the range of several dozen – one hundred and forty-one zlotys and 50 grosze (statutory maximum).
It is worth remembering that many companies offer the first free payday loan
It gives away exactly as much as it has borrowed – companies entering the market with a new payday loan often use such a promotion, but there is no rule here, such action is also increasingly introduced by large, well-known players. When choosing payday loans, it’s a good idea to compare payday loans online.