Sometimes situations arise in life that put us in a financial emergency – be it in the form of a claim from the energy supplier, an unexpectedly high additional cost payment, a car repair or simply the available money no longer suffices by the end of the month . So you are concerned about how to meet this short-term liquidity requirement quickly and, above all, easily. At best, you have a certain financial leeway at the house bank or a few financial reserves that you can fall back on – if necessary, also using the so-called overdraft facility. But what if exactly these options are not available? Pawnshop, short-term loan, loan shark or loan without credit record?
In the past, it was certainly the case that if the topic of “bank” was out of the question, the first course led to the pawnbroker. Anyone who needed money at short notice and had items that could be loaned was more or less in good hands in the past because of the lack of alternatives. Why less “good” care?
The reality of the mortgage loan
Even if you have a very valuable pledge to lend: you never get paid the new value of the pledge used, which often leads to a clear disappointment for the loan seeker. As a rule, there is much less than hoped for, which means in numbers that the loan offered is only between 25 and 50 percent of the object of value – and sometimes the deposit is even completely rejected! For example, if no proof of ownership can be provided for high-quality items.
In addition to the interest, which is usually quite low (approx. 1%), there are also 2-3% of the loan amount as fees – monthly! With a loan amount of 300 dollars, fees amount to around 6.50 dollars per month – interest not included! Good, let alone acceptable conditions look different!
The alternative: the mini loan
An alternative, which in our opinion is significantly better than the pledge, are the so-called mini loans or short-term loans. These providers specialize in the granting of so-called 30-day loans. Thanks to so-called express options, it is also possible to have the short-term loan applied for in the bank account within a very short time (on the same day). In addition, the conditions for this type of loan are significantly better than for mortgage loans. As a rule, an average of 14% interest accrues, which means an interest charge of around $ 1.15 for a loan of $ 200, which means significantly more attractive than in a pawn shop for 30 days. In addition, there is no need to pledge an item that may have a high emotional value in addition to the material value.