Do you have a personal payday loan requested and would you like to pay it back earlier? In that case, you are very likely to wonder if it is profitable to repay a personal payday loan in advance. Because in Good Finance we not only give you the possibility of contracting a loan of up to 50,000 euros, but we are completely transparent and always try to answer your questions.
Repay a personal payday loan in advance: is it profitable?
There are people who have a loan requested and who have raised a considerable amount of money and consider the possibility of repayment or cancellation. Of course, is it worth doing? Is it worth it?
In the event that the interest on the loan exceeds 0%, its repayment is always profitable. Because reducing the term and reducing the fee will save you much more money.
However, it depends on the specific bank, because there are some banks that do not charge anything to return the money early; but there are others that do charge a percentage.
How much can the commission for early repayment be? According to the law, it may not exceed 1% of the capital reimbursed as long as the term between the repayment and maturity of the credit exceeds 1 year. If less, the commission must be less than 0.5%. Nor should it exceed the interest that is being paid from the personal payday loan.
In your case, if your entity applies a penalty, you must analyze which of the two ways allows you to pay less for your money.
What are the advantages?
Some of the advantages of repaying a personal payday loan in advance are:
- Return less money: the first advantage is clear. And it is that canceling the loan ahead of time you can return less money.
- Higher disposable income: by not having any outstanding credit you will have a higher income at your disposal and you may even request other credits.
- Peace of mind: there are people who can’t stand being subject to personal payday loans and as soon as they can cancel them to be calmer.
Do you have disadvantages? It depends on the financial situation of each person. For example, if to pay right now what you lack of credit you run out of savings, perhaps it is not the most appropriate; because you might be forced to ask for another loan if a setback arises.
Reduce terms or fee?
If you have contracted a personal payday loan, you may wonder if it is better to reduce the terms or reduce the loan fee. And it is that the loan can be canceled totally or partially.
Both options are interesting and profitable. Of course, reducing deadlines means greater savings, because you’ll end up returning less money. By reducing the term you could save much more money, of course you will have to have the money for it, without any problem reaching the end of the month.
And even if you have trouble coping with the fee or if the interest rate that is applied to you is variable and may rise in the future, you could reduce the fee to prevent it from ascending to an unassumable amount for you.
Therefore, it depends on a lot on your current circumstances.
Find the best personal payday loan and don’t worry about anything!
If you are able to find a personal payday loan that fully meets your needs, you will not have to worry about terms as well as fees. For example, in Good Finance we offer you something 100% customized for you, based on your financial situation and knowing that you can return it comfortably.
In addition, we can help you evaluate the most appropriate options for you. So if you are not sure what to do, do not hesitate to contact us.
We hope that this article about whether it is profitable to repay a personal payday loan in advance has been useful to you!
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