We live in a sparing country and almost everyone has money in hand, but that is when you think of a payday loan. Often that moment is when you are just starting a relationship or when you are going to decorate your own house. You want to purchase more than you can afford at that time, and with a loan such a financial gap can be closed temporarily.
What kind of loan is it
If you take out such a loan, you borrow a certain amount in one go. That amount is a fixed amount and is often provided in certain fixed amounts. You borrow a fixed amount that you pay off with fixed interest in fixed monthly installments. You do this in a number of fixed installments, and the loan is provided in such a way that it fits seamlessly with your situation. Such a payday loan is something you don’t just take out; you must have thought about it before you borrow money.
Why calculate how much you can borrow
If you are going to borrow money, it is important that you calculate in advance how much you can borrow. That may sound patronizing, but it is a tool that is provided to protect you against debts that you cannot pay off in the future. You do not want to end up in trouble with your family and huge debts, so it is important that you provide honest information when applying for a loan.
Which matters play a role in the application
Are you going to take out a payday loan, you will be informed about a number of things. This way, your personal situation is first looked at. If you are single, you will generally have fewer expenses than if you were married. If you have children, you have an even higher spending pattern. After all, children cost a lot of money, and you have to take that into account in this case. Furthermore, your monthly income is looked at. It is recommended that you do not pay more than a certain percentage of your monthly income to repay a loan. If you are married and there is a double income, there is also more spending room available for the repayment. Furthermore, your home is looked at; do you have a rental property or a property for sale. A rental property is usually a lot cheaper than a property for sale, and that gives you the opportunity to repay a little more each month. A home for sale, on the other hand, can act as security for a lender.
The test at the BKR
A payday loan will first have to be passed through a test at the BKR. It is registered here whether you already have a loan. A mobile subscription with telephone is also registered with the BKR. This way, it is looked at whether you can afford the repayment. This loan is also registered with the BKR until the last repayment is made. This way you will not get into financial problems through loans.