Over half of Poles declare that they read the contracts thoroughly before signing, but as many as 12% read them only after signing. Almost 40% of people participating in the study only guess what the consequences of not paying back the loan may be, because they are not familiar with the part of the contract that applies to them.
One-third suspects they may have problems repaying the liability before it is incurred. These are the results of the latest report, a company hapi-loan, which shows how Poles manage their finances.
How do we deal with repayment of loans and borrowings
For the third time, Online Payday Loans conducted a public opinion poll to check Poles’ attitudes towards meeting their financial obligations. How do we deal with repayment of loans and borrowings, what do we usually borrow money for, do we know and understand the provisions of contracts signed, or do we understand the consequences of non-payment of financial obligations.
According to the data of the Credit Information Bureau, Poles are increasingly willing to borrow money from financial institutions. Last year, banks and loan companies granted USD 78 billion in cash loans and borrowings, with a rise of a few percent in RdR.
The total debt of the loan sector clients is USD 28 billion (USD 5.2 billion of this amount was borrowed from loan companies and USD 22.8 billion from banks).
Poles are bolder in using financial products
Such as loans and credits. Most often, the purpose of financing is buying a car, renovating an apartment or house, and a paid surgery or surgery. However, it still happens that consumers do not read or understand the contracts they have signed. Therefore, effective education of clients as well as further simplification of contracts is important for the entire industry – says Monika, Communications & PR Manager in Online Payday Loans.
The latest report shows that almost 56% of those surveyed read the contract thoroughly before signing it, which is a slight increase compared to last year’s survey. However, it is still almost 7 percentage points less than in 2017. Superficial check of the contract
this year it was declared by 1/4 of respondents. Only after signing the contract does it analyze 12.4% of respondents, while 3.5% of respondents do not read the content of the contract at all.
Interestingly, despite the fact that more than half of the people participating in the survey declared reading contracts, and 25% their superficial reading, almost 40% of respondents declare that they do not know the records regarding the consequences of non-repayment or delay in repayment. 53.3% of respondents have very good awareness of this type of conditions (a level similar to the 2017 and 2018 survey). 8.3% of respondents do not know the consequences of delay or lack of repayment.
According to the study
The most popular loan targets are still a car, renovation of an apartment or house and paid operations or procedures. Almost half of the respondents (46.9%) would borrow money for the car, a slightly lower percentage of responses (about 45%) concerned renovation. Paid operations or procedures are costs at which 30% of respondents are willing to take a loan. Less than every fifth respondent would take a loan for the purchase of electronic equipment, and every tenth – for a holiday.
The highest percentage of such responses was recorded in cities with 20-50,000 inhabitants and over 100,000 inhabitants – nearly 40% each. However, a large proportion of respondents believe that they will best compare offers on their own. 4 out of 10 respondents indicated that if they considered taking a loan, they would decide to analyze the offers themselves.