How does the loan change your life?

Many people have already found out that a loan can change someone’s life. Perhaps not the hard way, but finding out from others: those to whom the loan helped make their dream come true and those who got into financial trouble due to the loans. What is the story behind it?

The story of a forum member …

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You can find various denominations on the internet, here is one:

“(…) I have changed my place of residence many times, mainly for financial reasons. Finally I found a job in which I have been working for over 8 years. In the meantime, I made considerable debts (loans offered by the bank on the basis of income from pay, payday loans, etc.). I needed money to settle my obligations … I got into debt with a few people and it had to be given away from something. I can’t count on my parents for help (…)

I work in a store, the wages are poor, there was not always enough credit installments, so I took the payday installment over and over again, the payday extension was extended (because I had no money to pay it back) and the debt continued to increase. Another installment of the loan was not repaid payday payday, so I was taking another payday payday loan. It lasted for two years, such a flashing extension until I finally did not get a loan or payday loan. The debt increased to almost PLN 100,000 …

The moment I have 4 bailiffs, on salary, accounts

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By tomorrow I should pay back PLN 15,000 to avoid further costs and even larger debts. I know that I won’t have anything and tomorrow I will be on the verge of nervous endurance (…) ”

There are many similar stories of falling into a spiral of debts and although sometimes it is hard to believe, everyone really has a huge impact on how the loan will change his life. The story of how the loan was taken and repaid on time is unlikely to be found on any forums, because these are matters so obvious and popular that you do not have to brag about them. However, it is worth remembering a few basic rules for safe borrowing before taking out a loan:

  • Think about the amount you need and borrow exactly that. Borrowing a smaller amount may result in another loan, and a larger one – repayment problems.
  • Remember that the correct repayment amount will be higher than what you actually borrowed. Take this into account when you start calculating your financial possibilities.
  • Agree to the terms of the contract only if you know and analyze them thoroughly. Be particularly interested in the monthly installment amount and payment date. In case of ambiguity, ask your advisor and try to negotiate with the financial institution.
  • Check the company before you sign a contract with it. Avoid unreliable institutions.
  • Never take a loan unless you have the conditions and certainty that it will be repaid!
  • In case of problems with the repayment of the loan, immediately contact the institution with which you signed the contract. Avoid taking out more loans to pay off previous payments and hiding from payment requests. Remember that interest and penalties are always charged.

Anti-usury Act

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From March 11, 2016, every borrower who feared the so-called “Usury” can sleep soundly. In connection with the introduction of amendments to the Act, the possibilities of loan institutions in arbitrarily determining the cost of loans have been significantly reduced. Companies that have become rich on the naivety of customers by imposing extremely high obligations on them must now adapt to the new rules that apply to them. The new maximum cost for a loan is now 55% per annum and cannot exceed 100% of the amount borrowed.

In addition, there is a legal limit on the amount of the loan, the exceeding of which will have unpleasant consequences for lenders (e.g. they will not be able to charge interest for the excess amount). Until now, the borrower who was looking for a secure loan company had to check it carefully. Thanks to the new act, dishonest companies were mostly automatically eliminated by the obligation to have a minimum of PLN 200,000 in equity and the necessity to provide the required documents on pain of a fine. Failure to comply with this issue results in the investigation by the Polish Financial Supervision Authority.

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