The decline in the loans we take from non-banking institutions is reported by the BNB. For a year they decrease by $ 225 million.Non-bank loans include all the loans we use, from the one that we pay to a fridge to lease several company cars. Last summer, these loans amounted to almost $ 2.7 billion, and in June 2018 they fell to $ 2.4 billion.

For quick loans under 1 year, known as payday loan, the reduction is below 1 per cent. For the same period of time, according to NSI data, our average income increased by 8.7% and expenditures by 11.4%. With the Credit without income you can understand the best.

Find the best deal on quick credit

However, if we look at the pen of loan proceeds that each of us receives – in 2018, we are borrowing more, which may turn out to be bank or friend loans. Against 5.52 per person, last June now stands at almost $ 8 and 50 cents per credit.

• According to the Quick Loan Companies Association, their clients do not decline, and the BNB calculations are not just for them, as fast loans also include serious leases that are already in the last year of repayment.

• There is a tendency of increased regulation on the part of the Consumer Commission and the BNB and it leads to the withdrawal from the market of certain companies that had strange and non-market practices, which could be an explanation for some decrease in the market.

• And a survey of attitudes to using fast loans shows that 60 per cent of respondents do not have, and do not plan to withdraw. Against them, 32 per cent say they take advantage of this product. The rest have plans to take a quick loan.

Among the benefits of this type of lending, people cite facilitated procedures and quick approval, and the downsides concern that conditions are unfavourable.

Although interest is the first thing we see as the cost of the loan and what lenders most often focus on, it alone does not provide complete information about the cost of the loan. The cost of one loan can be measured in different ways. The options available for selection are: interest on the loan, total repayment, annual rate of charge, the amount of the monthly instalment. In practice, the Annual Cost Percentage (APR) has been adopted as the most objective indicator and there is a specific justification for this. Other indicators can also be benchmarks, but each has its disadvantages, which more or less make them less useful.

Interest

In short, this is the primary cost of the loan. Yes, it is called primary because it alone does not give an objective idea of ​​the full price. A loan, especially a home loan, is usually associated with a number of other costs and fees that further increase the cost of the loan, but interest does not reflect this. From this point of view, it can only serve as a starting point for the selection of a tender and for an elementary comparison between identical products.

Paul Petersen