Credit, loan or installment purchases?
Poles love to shop, especially when they buy their dream IT or electronics or buy fashionable shoes or a purse. We spend more and more on various technological novelties, gadgets, and clothes. Lack of cash is not a problem today, because purchases can be financed with a loan, loan or installment solution.
It turns out that more and more people are struggling with financial problems. Every fifth European lends money to pay bills. The group of such people has grown from 15 to 20% in the last 3 years. Most often, families with children cannot cope with debts. 27% of households of several people use loans to pay bills, while 28% of them borrow for purchases from children.
The factors that are responsible for economic growth
While also increasing consumer debt, are the e-commerce market and pressure from social media that encourages people to buy more and more. 31% of Europeans confirm that the ease of shopping online makes them spend money more often. In contrast, 42% of EU residents say that social networking sites are putting pressure on them to buy more. This data also applies to Poland.
- In the past, shopping was the domain of women, but nowadays men often do it. We spend a fairly large part of the household budget on everyday things. We often invest in ourselves and technological innovations.
- The characteristic of the modern consumer is impatience. We do not want to save money for shopping, we prefer to have new equipment or clothing here and now. For this reason, we are increasingly financing purchases with cash loans, installments or online loans. The last solution is the fastest and most convenient. An installment loan through the Internet allows you to get money instantly and thus allows you to take advantage of the shopping opportunity – emphasizes the expert Good Finance.
Bank loan – a solution not for everyone
A loan is a liability that is only granted by banks and credit unions. To receive them, the customer must meet a number of requirements and provide the relevant bank with relevant documents. A cash loan is a good solution to finance larger expenses, but not everyone will receive such a commitment. Banks thoroughly check the client before borrowing money. As a result, many loan applications are rejected.
It should be remembered that banks are subject to the Polish Financial Supervision Authority, Banking Law and have clearly defined procedures that they must follow. Before granting the loan, the bank verifies the borrower’s financial standing, checks his income, creditworthiness and credit history at Credit Checker.
There is still such a problem with credit that you not only have to meet the strict requirements of the bank but also often there is no chance to borrow money quickly. As a result, before we take out a loan, the promotion in the store we cared about my end. So maybe it is better to immediately look for financing shopping in the store?
Shopping in installments – a convenient but more expensive solution
Installment purchases are a solution often offered by stores selling more expensive products. To use this, you must submit all necessary documents to the store vendor or installment booth. Most often it must be an ID card and a salary certificate from the employer. All formalities are handled at the point of sale. In this case, the loan amount corresponds to the price of the selected product but is obviously increased by interest, fees or insurance.
Installment purchases are also financed by banks, so their requirements must be met. However, in this case, the broker is the store. Unfortunately, when choosing installment purchases, usually we cannot decide in which financial institution we will take out a loan. All because stores usually cooperate with one or two banks.
This means that these types of solutions are associated with higher costs and high-interest rates on loans, and often require insurance. However, you can find a cheaper and more convenient solution, especially when shopping online.
Installment non-bank loan – quick and easy solution
We can also finance more expensive purchases with a non-bank installment loan. This solution gives the consumer many opportunities and will allow you to buy your dream equipment for up to several thousand dollars. Non-bank loans are usually granted via the Internet, thanks to which we will deal with all formalities without leaving home.
To borrow money in this way, all you have to do is be an adult, have an ID card, bank account, telephone number, and stable income. Complete a simple application and send it online to your lender. The decision is received either by SMS or by email after several minutes.
If it is positive, the funds are transferred to the borrower’s account. Such an installment loan allows you to quickly obtain a large sum, which is then given in convenient installments for up to several months. Thanks to this, you can quickly take advantage of the shopping opportunity and, after arranging the online loan, immediately move to the online store to buy your dream product.
Poles like to shop and increasingly spend large amounts on it. Such expenses can be financed with a loan, loan or installment purchase. When choosing one of these solutions, however, it is worth considering which option will be most advantageous for us. Regardless of the choice of financing, you need to be moderate in debt.