Short term payday loan

Those who have recently been closely following the Online media and have been particularly interested in articles from the general credit market, should have noticed the intensive reporting on the topic of short-term credit. In these reports, the Tenor is quite clearly recognizable by the fact that short-term loans pose a massive threat to the possible over-indebtedness of consumers. In addition, these reports and articles often read about the fact that these short-term loans or mini-loans are all “pure credit rip-off”. For example, these loans would be intransparent in terms of Service options and the associated costs, and would also be significantly too expensive. In the case of interest for a short – term loan the same lyre-everything is basically too expensive! Thus, the call for appropriate regulation becomes quite quickly loud. At this point, however, the lack of knowledge about the local circumstances of the short-term loan offer in USA is also evident. In comparison with other countries, the short-term loans offered here are subject to ordered and controlled conditions. But why should this fact be specifically pointed out?
short term payday loan
Short-term credit – other countries, other conditions.

Short-term loans active in USA are often compared to PayDay Loans in the EU or express loans in Sweden. A clear mistake, because anyone who does this actually only confirms, that he has no idea about the circumstances of the mini-credits in the above countries. To illustrate the circumstances of short-term loans in other countries and The Associated differences with the German market, we take an example of the Swedish market. The so-called Express credit is widespread in Sweden and enjoys an intensive use of Swedish citizens. However, the Problem is the non-existent regulation of the credit market that has been in place since 2019. Since then, consumers have been able to borrow several thousand crowns (several hundred euros) within minutes without proof of their creditworthiness. So far – so good-right?

Usurious interest rates in Sweden-sort of the mini credit.

In Sweden, there is exactly what is being criticised here in USA for mini-credits, and indeed real interest rates. In recent years, for example, there have been cases in which instant loans were granted to gamblers in the magazine store or loans with an interest rate of 24,757 percent. For example, a lending company asked for a loan of 1,100 kroner after 30 days saturated 1,570 kroner. Understandably, this approach led to considerable public criticism, and so the “financial institution” – almost as “accommodating” – reduced the interest rate to “only” 5,731 percent. Correctly read – on significantly lowered 5,731 percent for a 30 day credit! Any Questions?

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