Payday refinancing – how does it work?Your personal finance knowledge base

Payday loans are loans drawn rather for small amounts, which should not cause a problem in repayment. However, life varies. If it turns out that we are unable to pay the payday payday on time, the refinancing option may be a salvation. What is refinancing of payday loans, how can it help you and what are the pros and cons of this option? Check with the Financial Market today.


Refinancing the payday loan – what is it?

Refinancing the payday loan - what is it?

Refinancing is an extension of the loan repayment period, which consists in transferring the debt from one loan company to another. You can apply for them in many loan companies (e.g. in Providence). This is of course a paid service. If we decide to refinance, we will get a slightly longer repayment period in installments. However, the repayment amount and terms will change.

If you do not have enough funds to pay the payday loan, do not hesitate, but be sure to contact the loan company and ask for refinancing. Thanks to this, we will save ourselves a lot of problems with non-compliance with the contractual terms. Currently, most loan companies offer such refinancing, but it is best to go for consolidation where the payday loan was incurred.


Pros and cons of refinancing payday loans

Pros and cons of refinancing payday loans

When deciding to refinance payday loans, you must bear in mind that this is not a free process. Large additional fees will be charged, but if we have no other option, it is worth accepting them, because thanks to this we will avoid entering into the credit bases as a debtor, we will save ourselves harassment on the part of debt collectors, and we will also protect against bailiff proceedings. However, it should be remembered that along with the loan agreement, the table of fees and commissions as well as the repayment dates will change. So you should ask for the payday refinancing agreement in great detail.


Several loans from various companies

debt problem

When deciding to borrow from private companies, it is necessary to think about whether we can afford to pay back the debt in the short term. Of course, it is possible to take a few payday loans, in different companies, if we need more cash, but this means that the costs will be very high, because high interest will be charged on each product. It is best to take the opportunity to take out a loan for a higher amount with a longer repayment period and to use it to pay off other liabilities with higher interest rates . Most known loan companies offer them.

Such a procedure of a specific consolidation of loans by taking out one installment loan, with a lower interest rate, for the repayment of other liabilities can be carried out, for example, in Rapida – a company that has one of the lowest interest rates on the market and provides loans despite a bad credit history, using a guaranteed institution. You can read more about the guarantee here.


What is a credit card?

Nowadays, most purchases are made electronically by credit or debit cards.

Nowadays, most purchases are made electronically by credit or debit cards.

It is much more convenient now to pay by credit card, which is also a good security against thieves. In the past, when cash payments were generally ubiquitous, shepherds often took the opportunity to steal banknotes from people’s purses. But now that most of the income is in a person’s bank account and shopping, only a small piece of plastic on the Internet and elsewhere is more secure that money won’t be stolen. Credit card nowadays is a convenient, simple and quite common way to buy everything you need.

Although the electronic payment system has been in use for quite some time, some people still do not know what a credit card really is and what benefits it can offer. A credit card is a bank payment card that can be obtained when entering into an agreement with the bank in question. It is possible to get a credit card at any Latvian bank – you just have to choose one, as there are several types of credit cards that offer different advantages. Some types of credit cards are MasterCard, Visa, American Express and others. They are also further subdivided into interest-free credit cards, standard, gold, platinum and more.

A credit card offers all the same benefits as a debit card.

A credit card offers all the same benefits as a debit card.

Credit cards can be used to pay in shops, at gas stations, and to make various payments on the Internet. With the help of a credit card one can book hotels, hotels, also airplane tickets. Of course, it is also possible to withdraw cash from a credit card through ATMs or to deposit money in your checking account. All settlements can be made not only in Latvia but also abroad. In addition to all these options, credit cards often provide different discount systems and bonuses. However, the main advantage of credit cards is that once all the money in the person’s current account linked to the credit card is exhausted, the bank offers the option of using a credit limit. This means that one can finally shop for a certain amount of money, determined by a credit card contract, at the end of his or her own money. It works just like a cash loan – a person borrows money and then pays it back. As with other types of credit, the credit card has a certain amount of interest to be paid in the event that one has overdrawn their funds and uses the credit limit.

If the person has used the money from the established credit limit, then it is reckoned that this money has to be repaid. There are several types of refunds. The most popular and advantageous way to get a refund is when a person repays the excess money within 30 days. In this case, you do not have to pay interest on the credit limit. However, if the loan cannot be repaid so quickly, you will have to pay interest either for the period the money is repaid or the amount to be repaid. Of course, the entire repayment process and the amount of interest, the bank employee and the credit card holder, agree from the very beginning when the credit card agreement is made.

Unlike fast loans, credit lines, and other quick cash loans, credit cards have a lower interest rate. Of course, this is different for each bank, but the average annual interest rate is around 30%. Also, unlike fast loans, it is possible to repay the loan in installments, which makes it easier for the person to repay the loan if the amount has been several hundred euros.

Credit cards are a good option if, for example, there are a few days left until payday and your current account is gone. In this situation it is possible to use the credit limit set for the credit card. When the salary is credited to the person’s account, the loan amount is repaid immediately. Since the first 30 days are free of interest on a cash loan, this kind of cash loan is quite beneficial and does not force a person to spend more money.

The bank sets the credit limit for the credit card individually for each customer. Often the credit limit is set at 3 monthly salaries. Of course, there are also specific amounts, like $ 5,000, but a bank employee negotiates a credit card agreement with each customer. Amounts are determined based on the customer’s solvency and income position.


Loan over 18 years without job

Fast credit on the Internet is appropriate when you are short of money – if this shortage of funds is of a temporary nature . This means that cash borrowing is only foreseen when the financial situation is known to improve in the near future. That is why this loan is also called payday loan.

But is it possible to borrow credit even if there is no permanent job?


Yes – fast jobless credit is a way and unemployed people can get a quick and affordable cash loan. A jobless loan will certainly not be granted to all quick loan lenders, but there will be someone who refuses.

People who have just reached the age of majority can use the services of fast credit companies. The Quick Job Loan for 18-year-olds is one of these loans available to young adults.

Quick credit in Latvia is available to residents aged 18-75. It is important for the lender not only that the borrower be an adult resident of Latvia, but also that his / her income is adequate and sufficient. A person’s income can vary – not just the salary paid by the employer.

18-year fast job without a loan 


If your other income is enough to repay the loan, and if you are not overdue for credit with other lenders:

E-Money CREDIT – fast loan in 15 minutes!

  • A fast credit company that provides cash loans to individuals over the age of 18;
  • You don’t necessarily need a job to get this loan;
  • The first time you borrow, the credit will be FREE!
  • First credit – up to 200 lats;
  • The maximum amount of credit offered by E-Money Credit – 400 lats;
  • You can also borrow if you have another quick loan from another credit company;
  • No documents are required;
  • Quick credit is available without pledge and surety;
  • Apply for a loan at any time. The company can credit your bank account every day from 7:00 am to 24:00 pm!

GOOD CREDIT – Fast Cash Loans in 15 Minutes!

  • A lender that also offers loans to individuals over the age of 18;
  • FREE first credit – the amount can be chosen from 50 to 150 lats;
  • GOOD Credit maximum loan amount – 350 lats;
  • Here too – no documents, no pledge and no guarantee will be required!
  • Register and apply for a loan anytime! Cash credits are credited to clients’ bank accounts – on weekdays from 8:00 to 22:00, on weekends from 09:00 to 21:00.

Loans from 18 years without a job 

Loans from 18 years without a job 

On the Internet and without any documents and formalities! At E-Money Credit and GOOD Credit – the first time you borrow, you’ll also have to give it back! Borrowing takes only a few minutes and is very simple.

You need an internet connection, a cell phone number and a bank account to apply for a loan .

Also look at other borrowing options in the credit comparison chart . In the table you will find TOP lenders that offer quick loans to permanent residents of Latvia. Borrow responsibly and wisely – make fast credit the right decision for you!