Most people do not pay special attention to a clause when entering into a loan agreement, but it would actually deserve it. The corresponding paragraph deals with the possibilities of how to redeem a personal payday loan. There are two reasons why the relevant paragraph is often overlooked.
Replacing the personal payday loan: the meaning and the frequent misunderstanding
The bankers’ technical language is complicated. So the terms “relieve” and “pay” do not mean the same thing, whereas “relieve” and “pay off” can mean the same thing, but do not have to. Anyone who reads superficially how to redeem a personal payday loan often understands the normal payment regulations, i.e. loan amount, interest charge and the monthly rate.
In fact, however, the term revolves around the special termination right or special repayment right, which states the conditions under which the loan can be partially or completely redeemed prematurely. The corresponding regulations can differ significantly from one another.
To replace the personal payday loan: That’s why you should pay attention to the conditions
However, many people understand the term correctly, but do not give the clauses any meaning as they do not believe they can pay off the loan early. However, this attitude is short-sighted: Because of a surprising legacy or a skillful debt rescheduling, there are always opportunities why you can redeem a personal payday loan early and why you therefore give the terms special importance and consider these before taking out the loan (and also in a possible one Comparison of different loan offers).
When does it make sense to redeem an early personal payday loan?
The basic reason why you can redeem a personal payday loan ahead of time is to get rid of the monthly charge of installment payments in this way. However, not every special repayment can always be carried out.
Some loan agreements set specific times for this. In addition, these are not always in vain, because the special repayment is a loss-making transaction for banks, because they lose interest income until the end of the loan term. It therefore only makes sense to repay a personal payday loan early using a special repayment if the fees incurred do not make the loan more expensive than if, as agreed, it is paid off by the end of the term.