Jenny Credit has recently been one of the most popular topics related to the financial and credit market in Poland. Some see them as a curse and a simple way to fall into a spiral of debts, while others see salvation and a financial product for everyone who needs to be treated with care, just like any commitment.
How is it really Everything in life should be approached carefully and carefully read the contracts, even what is written in a small print. Jenny Credit, as the name implies, is a loan granted for a short period, i.e. for a short period. Payday loans also relate to relatively low amounts. Also the time to grant such a loan is very short, as the company granting it usually does not check creditworthiness and does not require too many formalities. All you need to do is pay for your ID card.
How much is payday pay?
Payday prices are their biggest advantage. This is so far the only type of loan offered completely free. Most non-bank loan companies operating on our market grant the first payday loan for USD 0. However, there is a small catch. Free payday loans are only available to new customers, if you have ever used the services of a given company, you will have to pay for the next loan. The costs borne by customers are still attractive. Comparing payday loans to popular bank loans, we will incur several times lower fees.
So what do such companies earn when they grant loans completely for free? The answer is very simple. If we make a commitment, it means that our home budget is not stable and we need additional support, whether in the form of small payday loans in the amount of USD 300 or even those reaching even USD 3,000. If we have not been able to set aside this amount so far, the probability of problems with the return of the commitment made is very high. This can lead to a credit loop – the biggest danger in the loan industry.
How can the payday payday not endanger our financial stability and lead to a spiral of debts?
Let’s start with the fact that if the payday loan is immediately repaid on time, it does not generate high costs. The biggest problem starts when we exceed the installment payment deadline. The really dangerous costs of payday loans are fees related to late repayment. Such a cost may be, for example, an application for extension of the loan repayment or collection fees, reminders, etc. Loan companies have equipped a number of tools that not only support debt collection, but also increase debt. The mere arrival of a debt collector can increase our debt by up to one hundred or two hundred zlotys. Payroll reminders are another “additional form of earnings” for loan companies. The lender can start sending us paid SMS, the cost of which is 25 USD per item and urgent letters, whose prices start from 25 USD and can reach even 100 USD for one letter. Late repayments mean that a borrower may lose from several to several thousand zlotys with a loan of several hundred zlotys.
How to avoid the unpleasantness of loans?
In order not to fall into further financial trouble, several conditions must be met. The first is to read the terms of the contract carefully. Never sign anything without reading for understanding. If the contract is written in a vague way, then it is worth taking the text of the contract and ask someone from your family or friends to analyze the individual entries.
Jenny Credit is not a bank loan. This is usually the last resort for people who have no chance of getting a loan from a bank. Who definitely should not take payday pay? A person without financial liquidity or simply bankrupt. This applies if the borrower wants to take a quick loan to pay the installment at the bank. This is a simple way to get into a debt spiral. In short, unless we have the money to pay off the loan quickly, we must under no circumstances sign a contract.