Payday loans for retirees why they are needed
The amount of pensions in Poland is not optimistic, which is why older people often lack money for all expenses. The worst situation is seniors who receive a minimum pension, from which they must cover expenses for housing, medicines and basic living costs. Due to the financial situation, pensioners cannot use banking products, which is why payday loans without age restrictions are often the only help. How are they different from traditional cash loans?
What is the difference between payday loans for a pensioner?
There are offers for everyone on the market of non-bank services, regardless of age or financial situation. Loans for retirees and pensioners are a special category of products because they are adapted to the needs of seniors. At Credither you can find payday payday loans, which are given to people up to the age of 70, which is practically impossible with a traditional bank loan. In addition, its amount can be selected to suit your own financial capabilities, which is why a low pension is not a restriction on taking out a loan. An important feature of these products is also that you can independently set the deadline for repayment of debt to coincide with the date of receipt of funds from retirement.
How should ideal loans for seniors be?
Banks, due to low retirement benefits, are reluctant to grant loans to seniors. They are mainly afraid that the liability will not be repaid on time and the lack of other sources of income will prevent debt collection. Perfect payday loans for retirees are characterized by great flexibility and thanks to them you can borrow money for any purpose. Installment loans or quick payday loans with short repayment terms are available on the market. In the case of retirees, 30-day cash loans may prove to be the better solution. The first loan is free, so no additional service costs or interest are added to it. The only condition is repayment of the entire debt on time. Installment loans may seem beneficial because they are divided into more installments. However, it should be borne in mind that each of them is interest-bearing, which is why the amount to be repaid will be much higher than the one that actually went to the account. In installment loans, the problem is also that the account will be debited for a long time, which in many cases will prevent you from taking another loan or making purchases in installments.
Why do seniors get payday loans?
Retired life is not always carefree and enables you to pursue passions that you didn’t have time to work for. Most seniors spend a large proportion of their financial resources on specialist visits and medication, which in many cases covers most of their pensions. At the end of the month, there may be a shortage of money for basic needs, so a quick loan for a pensioner is a good solution. The loan amounts start from PLN 100, so if necessary you can borrow money necessary to cover basic expenses, and after receiving a pension pay all the debt immediately without risking additional costs. Seniors, despite low pensions, are happy to help their immediate family financially. According to a study carried out for BIG InfoMonitor, as much as 28% of pensioners spend money on loans for other people.
The study was conducted on a group of 502 retired people. It is worth noting that despite a higher percentage result, for their own needs seniors incur much lower amounts than for financial assistance to others.
Loan for a pensioner with a bailiff
Although seniors are considered a reliable group of clients, many of them have debt on their account. Debts do not always result from the lack of timely repayment of payday loans, and accumulated unpaid bills and other fees. For this reason, many seniors are struggling with debt collection that consumes a significant proportion of their modest retirement. According to the data, it is bailiff seizures and overdue loans that constitute the largest part of the entire debt of pensioners, as can be seen in the graph below.
As can be seen in the chart above, debt collection companies account for almost half of the debt of pensioners. This means that not only age, but also debts can make it difficult for pensioners to get a payday loan. To help pay off debts, non-bank institutions offer special loans to a pensioner with a bailiff that allow them to gradually leave the spiral of debt.
How do consolidation loans for retirees work?
Pensioners can improve their financial standing by applying for a consolidation loan. The payday loan is intended in full to settle the debt towards another non-bank company, thanks to which the pensioner gains additional time for repayment. This allows you to avoid charging additional fees for late repayment and improve your credit history. A loan for a pensioner is also a way to settle outstanding debts whose payment deadline has long since expired and therefore interest is accrued. Although exiting the debt spiral is a long-term process, non-bank loans can be a good start to stabilize your financial position.
Payday loan – how to apply for it?
The benefit for a pensioner is that you don’t even have to leave your home to get money. This is especially important in the case of seniors, whose health does not allow for numerous visits to banks and long queues. Payday retirees via the internet only require you to complete and submit an application on the website, and the money will be transferred directly to your account. However, not all pensioners have confidence in online transactions or do not use electronic banking, which is why they can use the GIRO check withdrawal method by going to the nearest post office.