Which companies can a student who needs extra cash contact? Is a student loan on good terms possible? And if so, which loan company should you apply for? We will answer these questions in today’s article.
A person who studies daily has very rarely any income from an employment contract. The source of income is usually a scholarship, money sent by parents, or occasional or part-time work. Based on such income, banks practically do not want to grant loans or credits. An exception may be a student loan, which allows you to get a high amount and an attractive interest rate. However, not everyone wants to be bound for a period of several years and the consequences associated with it.
The vast majority of people prefer online loans for a maximum period of several months or weeks. So if it is not possible to get a loan on such terms from a bank, young people often turn to loan companies. There is no denying that this is an attractive offer for young people. The repayment period is usually from 7 to 30 days, and the available loan amount is often up to $ 5,000. In the case of payday loans via the Internet, there are practically no formalities. The contract is signed by transfer of 1 grosz and cash is paid directly to the account even within 15 minutes of submitting the application. No certification is required, and parabanks usually do not verify the borrower’s income.
How do you choose the right loan?
It is natural that students are just entering adult life and do not yet have much experience in finance and banking products. So let’s know what to look for when choosing a non-bank loan. The first thing is to check whether the lender gives the first payday loan for free. This is a popular promotion used to encourage potential customers to find out that borrowing “doesn’t bite”. If you can convince him of this, the customer will probably come back, but this time for a paid loan. The cost of non-bank loans via the Internet oscillates around $ 200 per month, for each thousand borrowed. Even for a student, this is not a very big expense, because loans are most often taken for a period of 30 days. However, you can save this money and invest in something better. The way to do this is to get a first loan from many different companies. So if you decide on a loan, first apply to the company that gives the first loan for free, but you have not yet used its services.
Is a student loan a support or a threat?
What should you look for in managing your finances? The fact is, a lot of adults don’t know that. Too many loans or a mismatch of the monthly installment to your revenues can be a source of problems. This often leads to a spiral of debt and many problems. And as you know, financial and business life has a high impact on private life. Everyone knows that money affects every aspect of life. In the case of student loan installments, pay attention to the purpose for which the funds are allocated. A party, clothes or a new gadget will not be a good justification for a person who wants to take care of their finances. Well, why not buy it in a month? Or start additional work without relying on parental funds and scholarships. It is also worth that the amount is exactly matched to your financial capabilities. The loan will have to be returned in a month.
How much does the student spend on average per month?
What monthly costs does the student have to face? Most often this situation occurs when a person goes to study in another city. This is often the first room or flat you have rented. It is then that he starts to take his finances and free time seriously for the first time, because he is already becoming an independent person. As an example city, we will look at Warsaw. There, the average cost of renting a room is from 600 to 900 $. To this should be added the monthly cost of living, i.e. at least $ 500. Another thing that the lives of young people can not do without is social life. Here the discrepancy is large, because the monthly costs for some start from $ 100 to 200, and for others they exceed the price of renting an apartment. In addition, there are other expenses, such as new clothes, fashionable gadgets and other things that vary depending on the person’s passion and hobby. It can be assumed that the average cost of living “on its own” for a young person is about $ 1,500 per month. This is often why a student loan enjoys growing interest. Sometimes this is not a financially profitable decision, but in some cases there is no other way.
How to take care of your finances?
To reduce the risk of taking payday loans and possible “slippage” if we can’t refund the money on time, it’s worth taking care of your finances in advance. It will allow you to have peace and comfort in private life. First of all, the most important thing is learning to save. Why is a student loan successful? Because it is easy and fast. Quite the opposite of saving. The fact is that most Poles did not have this skill. It can be helpful to save all your expenses in a special notebook and analyze them at the end of the month. A good exercise is to mark out expenses that were unnecessary, add them together, and think about what that amount could be spent on. This simple exercise is the most important thing a student can do for his finances. Of course, it is just as important not to spend money on unnecessary things in advance. It is also good to plan larger expenses in advance and save on them. Thanks to this, you won’t have to borrow, and this will save you extra money.