Payday loans are contracts that are signed between a financial institution and a person, through which the first advances a certain amount of money to the borrower. With this contract, the person acquires the obligation to return this amount of money within a certain period, adding also some intereststhat are always agreed previously, and the possible expenses that derive from the management of the operation.
Thus, in recent years, due to the economic crisis, there have been circumstances that have made the requests for payday loans increase. In addition, if you make use of the statistics on the reasons stated to request this type of loan, you can say that the main reasons are:
- Solve debts: In many occasions, the money obtained through a personal loan is dedicated to paying certain debts that have been acquired over time. Thus, the borrower manages to stop the growth of that debt, growth that would pose greater future problems. Within this category, the payment of taxes and fines is one of the most frequent reasons.
- Purchase of vehicles: Currently, one of the requirements of many jobs is to have your own vehicle, due to the necessary travel in that particular profile. Thus, a personal loan can be an acceptable solution to be able to face the necessary investment or at least to the entrance.
- Reforms at home: The budgets for the reforms we do at home are often quite high. In addition, budgets are rarely met, which as a rule tend to increase as the works evolve. For this reason, the occasions in which the family economy is damaged after the realization of reforms in housing are not uncommon. In this case, applying for a personal loan allows the investment to be made, decreasing the economic impact on the family.
- Expenses related to children: Many are the expenses that a family faces throughout the life of the children. For example, many families make use of payday loans, for example, to pay the feescorresponding to the school of the children of the family.
- Holidays: Lastly, holidays are also worthy of good economic planning. Thus, many Payday loans are aimed at allowing families to have a few days of vacation in the desired place.
Taking into account all these reasons, the average amount of payday loans in Spain is 7,087 euros, with the age group that makes the most use of them between 35 and 44, ages in which the odds increase to live some of the circumstances discussed above.