If you're finding yourself a little down on your luck financially and in need of a short term loan, then you've probably given some thought to availing of the services of the numerous quick loan businesses that have set up shop in Dublin.
Many people view these stores with a high level of trepidation, despite the promises that they will 100% guarantee to give everyone a loan, and they are correct to be at least a little suspicious - after all, why would these places give loans to people banks had turned down unless there was something in it for them?
And there most certainly is something in it for them; huge interest rates!
Although these places offer only small figures when it comes to loan amounts, the interest rates a generally around 25%, and the loan duration rarely exceeds a few weeks, or a month at most. So before you think "I could afford to pay back an additional 25% on a €200 loan", let's take a look at how things are done.
Okay, so you decide that you need to take out a €200 loan - you've explored all the other options available to you and there is simply no alternative available - so you pop into your local quick loan business. You agree to the terms that you'll need to pay back the initial €200, plus the interest of 25% in two weeks time, and everything seems fine.
Unfortunately, another emergency crops up in a week and you can't afford to fully pay back the loan when it's due. You've managed to scrape €100 together though, surely that'll help? On going in to repay the money, you learn that you're not going to be faced with an additional 25% interest on the currently owed amount for every week overdue you are - this means that despite paying €100 off your initial €200 (plus €50 interest), you are now expected to pay another €185 the next week. If we repeat the same scenario and you can only pay another €100 that week, you'll owe €110 the following week. Assuming you can pay that off, a €200 loan will have cost you an astonishing €310 over a period of less than a month. That's huge money for someone who cannot afford it.
The best advice we can give you relating to quick loans in Dublin is to avoid them unless you are absolutely sure you can afford the repayments in full or on time!