The summer months, together with December, are the most expensive periods of the year. Above all, summer holidays are the fault, which is why Czechs borrow more and more often. And while experts warn against such loans, there is no need to give up right away. The coming months offer the possibility of borrowing, which at a mature discretion will not burden the family budget.
Holiday Loans: Yes or No?
The experts’ answer to the question of whether to borrow on holiday is in most cases negative. These are loans in the gray category of loans without purpose. Vacation is not vital and can be dispensed with without it. Moreover, because of this, Czechs often get into financial trouble and often such a loan becomes the reason for declaring personal bankruptcy. But the problem is not in the product itself, but rather in the fact that we cannot estimate how much we will be able to repay. At the same time, the vast majority of banking and non-banking institutions offer a preliminary calculation that clearly shows how much we will pay monthly and how long. We then have to calculate the monthly expenses and carefully consider the financial possibilities. So if we decide to go on a vacation loan, we have to make sure we can pay it back without any problems.
Short-term loans may also be the answer, but a one-time repayment of the full amount is expected after a specified period. It is possible that we do not have the necessary amount at present, but we will have it in a month. The time when we can go on holiday is now, however, and it would be a shame to miss it. In addition, in the case of short-term loans, clients pay minimum interest, while the repayment period is twice extended. At least that’s the Zaloan Micro product, which is a short-term loan up to $ 10,000. In addition, it is free for new clients to borrow 9,000, – and repay within 30 days.
Summer offers quite a lot of opportunities to earn some extra money in the event of financial problems, so that you do not face difficulties in repaying the loan. Take advantage of summer jobs or seasonal work to get enough resources and do not have to significantly reduce the repayment period. If time does not allow you to do this, it is necessary to reduce other monthly expenses. A budget gap can be achieved by reducing smoking, reducing alcohol consumption or spending cheaper leisure time.
If you know that you will take out a loan during the summer, first do a market research and find out which institution can offer you the most advantageous amount. At the same time, never borrow more than you need. Always read the loan agreement, including any attachments and footnotes, and if you don’t understand a point, don’t hesitate to ask the provider for an explanation. You should always be interested in the interest rate, APR and penalties in case of late payment.