People deciding for a payday loan or a cash payday loan are often wrongly convinced that the installment of a given debt will never increase.

Czy rata pożyczki lub kredytu może wzrosnąć?

It turns out, however, that in practice the case looks a bit different and the initial low installments may increase. How is this possible?

Very many people in recent years have taken out mortgage payday loans, as well as various types of payday loans, because they were tempted by very low installments. Their amount, however, is closely related to interest rates. For this reason, if they are low, the installments of such payday loans or payday loans will remain at a low level.

However, it turns out that this situation may change. If the Polish National Bank decides to raise interest rates, it will automatically translate into an increase in payday loans and installments payday loans . When you take out a payday loan or a payday loan, you have to count on the possibility of increasing the installment by as much as 20-25%.

What affects the amount of the installment?

There are basically two factors that affect the amount of the payday loan installment or payday loan. One of them is the aforementioned interest rate. However, the key element on which the installment depends depends on the reference rate. Its level, in turn, is affected by the amount of interest rates set by the National Bank of Poland. Wibor, in the simplest terms, is the interest rate on payday loans on the Polish interbank market.

It is calculated on the basis of the interest rate, which is given by banks that belong to Wibor. From this data an appropriate average is calculated and this is the interest amount. The reference rate, or Wibor, should therefore be of great interest to people who take out payday loans in the Polish currency. When borrowing a payday loan, you should take into account not only the interest rate offered by the bank and the margin.

Fortunately, it has been incredibly low for a very long time. However, this can change and you should always keep it in mind. Also installments of payday loans taken in foreign currencies may change. This is followed by the unfavorable zloty exchange rate against other currencies. All foreign currency payday loan holders are certainly aware of the fact that their installments are often exposed to growth, but also to decline.

Change in interest rates

The level of interest rates also has a considerable impact on the amount of payday loan and payday loan installments. The change in the level of interest rates occurs, in turn, if the state of the economy in the country deteriorates. The Monetary Policy Council decides whether the rates will be raised. It is she who assesses the state of our economy. If inflation goes up, interest rates are expected to start rising.

Fortunately, there are not always such increases. Everything depends to a large extent on the specific situation, which is why one should not associate any increase in inflation with an increase in the payday loan or payday loan installment. However, if it happens that the payday loan or payday loan installment will be too high for us, we can apply to the bank to reduce it. However, we must face the prolongation of the debt repayment period.

However, this is a good option and it is worth using it in the case of high installments.