Along with the development of technology, access to various things including financial aspects is also getting easier. It’s not just about shopping, you can also borrow money through your smartphone.
No wonder the online loan business is increasingly widespread.
Besides being easy, the online loan process is also very fast. It only takes about 1×24 hours or a maximum of 2×24 hours. The fresh funds are already disbursed into the account.
The process is certainly not convoluted, does not require a long time, and can be accessed from anywhere. However, the negative thing is that many people do not take a long time to make a decision to apply for a loan.
Therefore, it is important for you to know how to avoid falling into online loans.
Here are smart ways to avoid online loan traps when you need money :
Don’t underestimate only because of small loans
Many online loan platforms offer small loans. Some of them start with hundreds of thousands, a million to a maximum of 20 million. Well, these varied loan options make most people think easily and hurry up to apply for a loan.
Requirements Are Easy, But Bigger Debt Interest Than Credit Cards
Submitting loans online is not as complicated as applying for a credit card. You just need your id card and social media accounts, you can enjoy fresh liquid funds in a short time. This is very much different from the requirements in applying for a credit card. The requirement of having a credit card is quite complex and the approval process is quite long.
However, the debt interest offered from this online loan is greater than the credit card interest, which averages only 2.25%. Online loan interest can be as much as 2.90 percent.
Many additional costs
Not only interest is greater than a credit card, but there are also additional costs to the interest expense. For example, administrative costs are quite a lot of choices, the cost of late repayments, and also penalty fees.
Furthermore, if you only use online loans only for financial matters, it will make your finances certainly unstable.
If your payment is late, the debt collector comes soon
First of all, when you apply for a loan, only sweet words will be heard. But over time, and the fact that you can’t pay the bills, the sweet words turn bitter or may be poisonous. The time needed is only 2-3 days late for them to send a debt collector to your house
Don’t let those things happen, fellas. Try to think of all the possibilities and impacts that will occur from an important decision that you take.
Read more : Online Loan? Is it Trusted?
