In the day when many are in trouble Want to spend money quickly, one thing you can think of is to borrow money from an acquaintance. Or go looking for personal loan source In spite of the need to take property (such as a car) to support in order to get the money out Some groups took it easy. Go looking for an informal loan source Keep it simple and face the brutal, non-legal and illegal interest for both the borrower and the lender. People are searching for another type of personal loan called “payday” which is specifically for salaried people. And today we come to get to know it better
Payday Personal Loan is a loan source that is a store or company. That may be legal or unlawful Originating from abroad For people who are hot, they want to use their money in an emergency, usually borrowing before payroll. And take the time to borrow until you get money within 24 hours or almost immediately after completing the filing The purpose is Before payday, insufficient funds or an emergency need to spend money And abroad These are Emergency Personal Loans from Non-Bank and are mostly used by people who Not have enough salary Use in month, month and month style. And that he named Payday Loan (Payday Loans) because the word Payday means payday and Loan means borrowing. If combined, then the meaning is “Borrowing money before payday” that.
Filing documents for a payday loan is much easier than applying for a regular loan – just submit your ID, bank account, and a few other documents. Will receive money transferred into the account immediately or within 1 day
The payday loan company will deduct processing fees, immediate fees from the loan amount. For example, borrowing 10,000 baht, he will deduct operating fees from the loan amount such as 500 baht, leaving only 9,500 baht, but the borrower still needs to pay 100,000 baht + interest to that non-bank financial institution.
Loan source of this nature Will like to launch in many names And most will lend in a narrow limit not exceeding 20,000 baht (abroad) by using the payroll. Or paycheck As collateral Which will have a high cost of processing And the interest is very high Overseas, it is reported that some Payday Loans collect interest as high as 400% per year.
These payday companies are terrifying and dangerous. And the most dangerous to the borrower’s financial, which, if compared May be the same with Informal recovery In the stains of a Non-Bank company because these companies Will allow borrowers to pay back an amount that most cannot afford And it is very difficult for the borrower. To pay back all, including the borrower, money like this is most likely to owe credit card debt. Or debt from other types of personal loans already can not pay off this type of debt completely.
The company will sign a loan agreement. With the company and Have to cents to accept the high interest rate. And more than that, since he will take his payroll as collateral if the money is not enough, the company has the right To forfeit money in the account when there is a salary, can be entered immediately Where there will be only a small cut of the principal The rest are interest, fines and demands separately.
This kind of danger is why people still use Payday Loan service?
It’s just a loan With a small number (less than a hundred thousand, just the tens of thousands)
Shorter loan periods Faster approval time
The installment period can be as long as a year.
Interest shown is a few%, such as 3% (can’t read carefully), but the interest includes fees and a fine of 400%.
Do not check the overdue history. That is, no credit check.
Reimbursement Will be debited directly from the payroll account
Some payday loans allow people to refinance their loans. With another interest rate
Who is most commonly abroad using payday loans?
People aged between 25 and 44 years (from foreign statistics).
People with low income
House tenants Does not have a home of its own
Groups of people with disabilities who are unemployed and those who are unemployed or do not work
Singles or people who are divorced
So what do they do with a payday loan?
Of course, if people really want to spend the money they need. It is mostly used in emergency situations such as car repairs, medical expenses. In the event that the provided health insurance or accident insurance is not covered, most people with Payday Loan use the money for other expenses. That may not be necessary, such as paying for home rent, food, electricity and even credit card debt payments. And only a small number To really pay for emergency expenses
Actually, there is another type of loan, the car registration loan. It is very similar to the Payday Loan types and both types of loans. Should be eradicated from this world ever Because it is to take advantage of the low income people And those who do not have knowledge of the loan Which we would like to Recommend these different ways to borrow. Or to make lifestyle adjustments for the better To make the debt less
Cut out unnecessary expenses from your life.
Some types of expenditures It shouldn’t even exist in life. The fact that this type of expenditure exists Even if it makes life more, it doesn’t. Financial life gets brighter like
Annual fitness fee – go to exercise elsewhere That doesn’t waste any money
Cable TV fees – movies, dramas, cut out before you have money and then apply again.
Internet fees that are unnecessary – eg for gaming.
Alcohol, cigarettes – it’s useless for life. Quit.
Expensive travel expenses – you can have money before you go.
Cars – Many people with good financial discipline. They do not have cars at all, even if necessary, endure a bit.
Slow down the bill
Talking about paying bills It has bills for electricity, water bills, credit cards, etc. In fact, these bills don’t have to rush to pay. Wait for the salary to be issued and then cleared as well because the bill payment is slow. Even if fines But those fines Is cheaper To borrow as a payday loan multiple times
Already have debt Using a debt consolidation loan is better.
When in debt and being called by morning and evening Whether it’s credit card debt or whatever debt If your heart is not strong enough Will have to be impatient Find a way to clear the debt Especially debt with financial institutions, but there is always a solution. Which is divided into two ways:
Stop Paying Debt – When it stops paying the minimum amount of debt such as a credit card. If not negotiated with banks or financial institutions, the debt will eventually be sold at auction. To the financial institution that bought the debt and it will have less value For example, Mr. A is owed 100,000 baht with Bank A, including interest (assuming 50,000 baht principal, 50,000 baht interest), Bank A does not receive debt. Therefore, the debt resale to Bank B for 70,000 baht, Bank A will still profit 20,000 baht and Bank B when the debt has been purchased must follow up. I proposed to Mr. A to pay the debt in the amount of 90,000 baht, which the benefit that will receive for Mr. A is that it is cheaper to pay the debt and Bank B will still have a profit of 20,000 baht.
Use a loan to transfer debt – The main issue that many people are trapped in is finance. There are many debts, so banks and financial institutions. It will issue a loan called a debt transfer loan is a collection of debt from anywhere to the bank that provides services, making the debtor do not have to pay the money to pay that person. Just pay in one place. This method works for many people, and many of them are able to escape from this vicious circle.