Repay payday loan
Research by Nibad shows that only 5% of consumers who take out a payday loan are disappointed with the repayment of the loan. Fortunately that is not too bad! We are happy to tell you more about it below.
Take out a payday loan
Taking out a payday loan is becoming increasingly popular. For example to finance a renovation, a holiday home or another major purchase. The payday loan is so popular because the term and interest are fixed, which offers you a lot of security. You also pay in fixed monthly installments. The duration of the payday loan is often tailored to the expected life of the product or service that you purchase. Then you are not yet paying if the product is no longer in your possession!
You always take out a payday loan for a minimum of 12 and a maximum of 180 months. Some lenders have a maximum term of 120 months, but sometimes the term can also be longer than 180 months. When taking out the payday loan, it is therefore already clear what you have to pay monthly and how many months you have to pay. Do you want to pay off your payday loan early? Then some lenders charge penalty interest for this.
Nibad is an independent foundation and information institute that provides information and advice on household finances, such as pocket money, pensions, debts and allowances. Preventing money problems is always the goal here. A study by Nibad on the payday loan recently appeared. 850 consumers, who had taken out a payday loan through an intermediary, participated in the study for 2 years. The research also revealed results regarding the repayment of a payday loan.
The research shows that only 5% of consumers think paying back a payday loan is disappointing. Further inquiries show that these people have thought less carefully about the consequences of taking out a (personal) loan than consumers who think the repayment is better than expected. For example, 4% did not check in advance whether they could pay the repayment. More than 78% did not know in advance how much they wanted to borrow, so they now find the repayment disappointing. This doubt about the correct duration means that they might now make other choices. If they could make the choice for a loan again, however, 78% of the total 850 respondents would make the same choice. Only 14% would make a small adjustment.
It is difficult for consumers to imagine what they think it will be in a few years’ time to pay monthly for a purchase that has already been spent. The effect of the