The loan is served on the Web , but at what risks?
If you only need a paycheck and an Internet connection to get a loan today, risking debt up to your neck is just as simple.
The alarm launched by concerns the easy loans granted by online financial institutions, which would increase the risk of insolvency. In this regard, the association returns to ask Abi and Assofin to sign an agreement to extend to families the credit moratorium granted to companies.
The risk of default is around the corner, especially if insufficient attention is paid to the interest rate applied, often at the borders with usury or the indicators that quantify funding are not known.
Many of the financial companies examined by, legally registered with the Italian Exchange Office and associated with Assofin, the trade association, often use misleading slogans.
Although to get a payday loan https://greendayonline.com/ is sufficient to have a paycheck.
Maximum flexibility therefore for the customer who can afford to skip an installment, change the amount, vary the duration of the loan, but also pay off early without paying any penalty, with the risk, however, to feed their “appetite” consumerism. The main problem is that several financial companies also allow financing for those who already have one. So, letting yourself get carried away, you can start from an electrical appliance, go on an exotic vacation and end up losing your mind for a new car.
The interest rate
The focal point of the loan is, of course, the interest rate applied, which must not go into the background compared to the advantageous conditions billed by the passing financial institution. It is fundamental that the user is confronted with the TAN, the annual rate, and the APR, the annual percentage rate. These two indicators quantify the interest rate of a personal loan. Although the first one is the most publicized it is also the least important. It is, in fact, the APR or the “annual percentage rate effective” that measures a whole series of burdens, which are usually present, such as the costs of investigating the practice for financing, insurance, and guarantee costs, collection costs for installments.
The calculation of the APR, now Cost Summary Index (ISC), is not very easy, even if it is to find that interest rate that makes equal the sum of the credit granted to the client, with the total sum that the client will have to repay to the deadline.
A simulation of has shown that it is easy to switch on more loans simultaneously, risking to be short in difficult insolvency situations. With a net pay of 1,600 euros, you can, in fact, get credits from three financial, for a holiday, the purchase of a car and the renovation of a house. Respectively, 5,000 euros in 48 installments of 125.10 euros, 25,000 euros in 84 installments of 401.60 euros, 30,000 euros in 84 installments of 482 euros. In total, they make 60,000 euros with a total monthly payment of 1008.70 euros and 20.227.20 euros of interest.