Monday, April 06, 2020

Here are some situations where you don’t need a payday loan

Lite Lender is the ideal place for people looking for a payday loan. Indeed, we compare the loans on the Belgian market as well as their interest rates and their costs. However, it is still important to ask whether a payday loan is necessary.

We see on social media that some people wonder why we advertise loans. They fear that through such campaigns, we will push people into debt and get into trouble. We take these concerns to heart and want to clear up some misunderstandings: the objective of Lite Lender is to help consumers make the right financial choices through independent, transparent and free information.

It is true that in some situations, a payday loan may be the right solution. However, it is not always. Lite Lender therefore offers its visitors the possibility of comparing all kinds of products, without being encouraged to make a purchase. Our goal is to help visitors make informed decisions. To do this, we carefully examine all the conditions and all the costs of Belgian financial organizations. Thus, you will never be faced with unpleasant surprises.

A payday loan is one of the most popular financial products in our country. You can use it to finance any project. Although such funding is not a silver bullet for everyone. It is important to weigh the pros and cons, just like when buying a new car or a smartphone. See for yourself if you really need this funding.


Non-urgent purchases

Non-urgent purchases

When certain purchases are not urgent, it is generally preferable to postpone them. A savings goal can help you a lot. Depending on what you want to buy, decide how much you want to set aside each month. Then see how many months it will take you to reach this goal.

However, we must remain realistic and think about the impact that these savings will have on the family budget. We also recommend that you always place this money at the beginning of the month: the temptation to spend will be less.


You need money to cover a month

money loan

September, synonymous with back to school, is also a month when parents spend more money. Especially those whose children are in high school or university. We are talking in particular about registration fees and school materials. Some parents do not always have the capital to cover all of these costs. A payday loan seems to them to be a solution. However, there are less expensive ones.

For example, if you know you will have enough money in the next month to pay off all of these costs immediately, you can use a credit card to pay off the principal borrowed the following month. With this formula, you have no interest charges to pay. This is the case if the reimbursement is spread over several months. Lenders then charge an annual percentage rate (APR). Try to avoid this because the APR is usually higher than that of a payday loan.


Take out a specialized loan

Take out a specialized loan

If you need a loan, it is important to determine which project you want to finance with this capital. If you make the wrong loan, you will quickly pay hundreds or even thousands of extra dollars.

For example, it is not a good idea to finance the purchase of a car with a payday loan. A payday loan is quickly two or three times more expensive than a car loan. So you have to tell the lender clearly and unequivocally how you want to use the capital. It is the only way to get a custom loan.


Beware of dishonest loans

Beware of dishonest loans

It is important to carefully consider each loan offered (online). There are, in fact, many fraudsters who offer “cheap” loans. They usually ask for an advance after which they disappear without warning. And so, you will never see the capital you have advanced to them again. A recognized financial institution will never ask for an advance before granting a loan. It is only in the case of a mortgage that lenders charge an application fee. These costs cannot exceed 500 dollars.


Save on your loan

Save on your loan

If you still want to take out a payday loan, you can save hundreds of dollars by playing with the length and amount of the loan. Want to know more? So don’t forget to read this article.

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