Payday advances, along with other short-term financing
Exactly what are payday advances?
Payday advances are a form of borrowing called «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 your following payday. This type of borrowing is often more costly than various other forms of credit.
There are more forms of short-term financing, including:
- instalment loans вЂ“ repayments are spread regular or month-to-month over several repayments, typically between three and a year
- вЂrunning creditвЂ™ or вЂflex creditвЂ™ вЂ“ the way in which this works is comparable to a bank overdraft, borrowers and provided a ‘limit’ they need to, provided they pay at least the interest off each month that they can draw up to as an when.
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