Pay day loans, along with other temporary financing

Pay day loans, along with other temporary financing

What are payday advances?

Pay day loans are a kind of borrowing called “high-cost, short-term credit”. You borrow between ВЈ50 and ВЈ1000 and spend back once again the mortgage with interest, in one single re payment on or soon after your following payday. This sort of borrowing is commonly higher priced than other kinds of credit.

There are more forms of short-term financing, including:

  • instalment loans – repayments are spread regular or month-to-month over several repayments, typically between three and a year
  • ‘running credit’ or ‘flex credit’ – the way in which this works is comparable to a bank overdraft, borrowers and given a ‘limit’ they need to, provided they pay at least the interest off each month that they can draw up to as an when. Read more