The maximum amount of payday loans you can borrow is determined by your debt ratio and your borrowing capacity. To avoid over-indebtedness, your total debt should not exceed a third of your stable income.
Calculation of the monthly payment for a payday loan
The ease with which a payday loan application can be made because no proof of capital use is required is more than tempting for many borrowers. It is important to ensure that this high accessibility does not lead to excessive debt.
That is why it is important to determine the monthly payments before making a commitment. The calculation takes into account your expenses (current credits, invoices, daily expenses …) And your income (financial resources, wages, pensions …). In belgium, the amount of a payday loan varies between $ 2,500 and $ 70,000, depending on the financial situation and the repayment capacity of each person.
Taking into account the costs
Before deciding how much to borrow, it is important to assess the cost. A revision of the amount you intend to claim may be necessary after the calculation of the interest and administrative costs. First, try to negotiate the apr and repayment term, then determine the amount of your payday loan based on that. In belgium, the apr can range from 3.99% to 15% of the amount allocated, so consider using our personal credit comparison in belgium. It would therefore be smart to compare different offers to avoid missing the best rate on the market.
Do an online evaluation
If you want to know how much payday loan you can borrow from different credit institutions, use the quick and easy online simulator. This solution gives you accurate information about your personal credit and in particular about the limit to which you are entitled.
The virtual tool first determines your debt ratio by taking the monthly average of what you owe to your creditors.
Then you have to choose between different rates, selected from the best on the market. After analyzing this relevant information, you will be informed of the specific amount of a credit that you can repay. The accuracy of an online simulator prevents you from taking out a loan that can lead to over-indebtedness, since all parameters are taken into account.
The payday loan, why?
The amount of a payday loan depends on how you plan to use it. It is an unlimited allocation and is generally used in case of unforeseen expenses. It is the ideal solution if you do not want to meet your budget to finance your holiday or if you have trouble paying your bills.
Some people use it to budget for baptisms, birthdays, birthdays, anniversaries, weddings…. In any case, after the monthly payments of your payday loan, you must have enough money left over for your expenses (insurance, rent, food, transport …).