Each of us may experience a misfortune that will result in the loss of a large sum of money. For someone who has no creditworthiness, often the only solution is parabank loans, or payday loans.
However, this is only short-term help that can cause us to fall into a spiral of debt. The first step towards debt relief should be a firm decision that you will stop taking further loans.
You must stop borrowing and stop buying in installments
Avoid using credit cards and debits in your accounts. Calculate how much you spend on interest during the year, the result may shock you, but also motivate you to act. It is also worth doing a community interview and finding out what can be done legally and what is not allowed.
Practical advice when paying back payday loans is not to pay any extensions in the absence of funds to pay back the loan you have received . Remember that you have no such obligation. The only effect you may have if you do not pay the extension is to charge interest for the delay.
It is much more profitable to regulate interest than to pay for an extension. Interest for every PLN 100 (as at July 21, 2014) may increase by PLN 16 per year . In turn, the average cost of extending a PLN 100 loan for a month is about PLN 20. After a year, this gives PLN 240, i.e. PLN 224 more than the maximum value resulting from legal regulations.
This trick is often used by companies offering payday loans
In fact – along with the cost of recovery – is the basis for earning them. How not to extend the loan? You should not make any statement about your intention to extend the repayment period.
Therefore, do not log into the online system of the loan company and choose the option of extension, in the telephone conversation that the loan companies perform several days before the repayment date, you should not agree to the extension and you should not respond to SMSs with information about the extension offer.
The downside of such a solution is that in such a case there is a delay in payment, which may result in additional debt collection costs and even going to court.
This fact affects the cost of the loan
Detailed terms of the offer and contracts with loan companies may, however, mean that the effects of the delay will be different than described above. Fortunately, it is possible to challenge debt collection expenses that are set too high. These costs are limited in the light of case-law, and companies often specify them in any way, e.g. PLN 300 for sending a written request for payment.
According to the jurisprudence of the Office of Competition and Consumer Protection, the cost of sending a written request for payment in the amount of PLN 20 is too high, and if the creditor charges such costs, we have no obligation to pay them. However, we will have to pay the cost of debt collection in accordance with the law.
Remember that getting out of debt related to payday loans will be a difficult, monotonous path, but regularity and solid organization will bring results!