Pay day loans, along with other short-term financing

Pay day loans, along with other short-term financing

This site contains information on our basic method of complaints about pay day loans along with other short-term financing. If you’re selecting information especially with regards to Covid-19, please view our page that is dedicated that information for customers about complaints in terms of Covid-19 .

Exactly what are pay day loans?

Pay day loans are a form of borrowing referred to as “high-cost, short-term credit”. You borrow between ВЈ50 and ВЈ1000 and spend the loan back with interest, in a single re re payment on or right after the next payday. This type of borrowing is often more costly than various other kinds of credit.

There are some other kinds 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 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. Continue reading Pay day loans, along with other short-term financing