Payday advances, along with other short-term financing

Exactly what are payday advances?

Pay day loans are a kind of borrowing referred to as « high-cost, short-term credit ». You borrow between ВЈ50 and ВЈ1000 and spend the loan back with interest, in one single re payment on or soon after the next payday. This sort of borrowing is often more costly than several other forms of credit.

There are various other forms of short-term financing, including:

  • instalment loans – repayments are spread weekly or month-to-month over several repayments, typically between three and a year

  • ‘running credit’ or ‘flex credit’ – the way in which this works is comparable to a bank overdraft, borrowers and offered a ‘limit’ that they’ll set up to as an if they have to, provided they spend at the least the interest off every month. Plus »