Debt is easy, but getting out of a carousel loan can be a long run. Therefore, before you arrange any loan, consider how the installments will affect your family budget. SMS loans before payout can be a significant risk, especially if you intend to pay other installments or payables with them. These short-term loans can help you quickly, but they can also bring you a lot of worries.
Extending the maturity is expensive
You can get a loan negotiated via the Internet or SMS quite easily. Non-banking companies will lend you up to several thousand crowns, regular clients up to 20 000 crowns. The risk is a short maturity, usually one month.
While many providers offer extending this period up to several months for a fee, the loan can cost you a lot. Apply for a payday loan only if you are sure that you will repay it next month from your regular income and will not jeopardize your family budget.
Loan for everyone? Not
Fannick loan is negotiated over the Internet. Just register with a non-banking company, provide basic personal information and the company operator will contact you with the result, or ask you for additional information and documentary evidence.
But everyone does not get these loans, as companies advise. They assess whether you will be able to repay the loan and whether it will endanger your family budget.
You pay high fees for renting
SMS loans are most often used by people who are in deep financial distress and need money immediately. These loans, however, involve high fees and an annual percentage rate of charge of several hundred percent.
This is a tax on the availability of loans for risk groups and also reflects the subsequent recovery of money or loss of money from non-paying customers.
Beware of usurers – the New Testament has not eradicated them
With the new Consumer Act, the number of usurers has been greatly reduced, but you may still encounter fraudsters. Although they will lend you without any examination of your financial situation, they often do not tell you how and where to repay the loan and charge you a penalty.
They do not respond to your reports and hand over their claim to the bailiff. Therefore, borrow only from proven and significant non-banking companies and read their clients’ experience.
Arbitration clauses are a considerable risk
A great danger is the arbitration clause in the contracts. They work on the principle that any disputes are not settled by an independent court, but by an arbitrator or arbitration court.
The fraudulent company can be arranged with the arbitrator to make a decision against the client, and the injured client has no recourse anywhere. However, this does not mean that there are no companies that resolve disputes through serious arbitration courts.
Do not sign anything that you do not understand
All terms of the agreement must be understandable to you. If the contract contains foreign terminology and you do not understand anything, ask the company for an explanation of the terms and conditions.
If it does not suit you and will urge you to sign the contract, please contact another provider. Note the penalty fees for late repayment in the contract. Even with a one-day delay, you may be subject to high penalties.
The pitfalls and risks of loans
There are many risks and pitfalls in the area of credit. What principles should we follow? Read here.
Problems with repayment
Getting a loan today can be a matter of minutes. What to do if it is not in installments? Read here.
The way out of the debt spiral can help find free financial advice. You can read about some of them here.
How to avoid execution
Aren’t you interested in the bailiff’s visit? Follow basic “safety” principles – more here.