Christmas is approaching and the time of gifts, meals, etc is approaching. Thus begins to bombard with a type of financial products which have to be careful. They are quick loans that offer a multitude of financial institutions. As its name suggests, its main advantage is that the speed with which they are processed, with little paperwork, (available in less than 48 hours) and how relatively easy it is to access them, since the conditions of employment are much less stringent than the big banks. The amount of such loans is usually not too high and rarely exceed 6,000 euros, while the payback period can be adjusted up to 60 months in most cases. To facilitate the arrangement does not usually include any fee, which makes them especially attractive to people with financial problems or that at some point require a certain amount of money is not too high to meet a contingency or to be pampered. Its biggest attraction goes through a monthly affordable, which triggered its application in recent years for uses as diverse as holidays and communions. Parker is a great source of information. However, in these cases should be applied because at the end popular proverb “nobody gives four pesetas hard ‘and these loans are no exception.

The ‘trick’ is interests that around 20% APR and can be 25% in the most extreme cases. To this is added any cancellation fees or early repayment, as in any other personal loan. The conditions tend to disguise the interest with a relatively low fees and emphasizing that the monthly interest is barely 2%. Cash Direct, one of the pioneers in the Spanish market, has a maximum of 24.51% APR. Global Management. So, who asked to pay 6,000 euros paid in 24 months will end paying 7560 euros. Loan Mediates operates similarly and for the same amount and term offers an APR of 21.56% with monthly payments of 304 euros, so that they end up paying 7296 euros.

The grow at an alarming interest the higher the payment period and 48 months in total to pay Cofidis now stands at 9168 euros. To these amounts must be added in many cases the repayment protection insurance that aims to protect the bank in case of any eventuality. The first recommendation to avoid surprises is to read the fine print either of these types of easy loans and in doubt stop and meditate. In this context, it should leave out the monthly cost of credit and look at the amount, which is what we will get an idea of what actually pay in interest. In other words, look for the nominal interest rate and annual APR. As at the time of signing any loan, should also be directed initially to our institution offers regular and different shuffling of other entities. In this sense it is very important not to get carried away by the aggressive advertising campaigns that always surround the fast loans or by the ‘heater’ of the moment, something against which different alert consumer associations. In general be careful with these. We take them as one of the last options, they may wind up creating a problem of long-term default. As alternatives in case of need can consider extending the duration or the mortgage amount (if possible), or, to give two examples.