SMS loans and other consumer loans have become popular types of loans with most Norwegians, and there are many situations where consumer loans are very useful for those who need it. Alternatives to SMS loans are now more popular than traditional loans such as car loans for example. The reasons for the increasing popularity are many, but one of them is that consumer loans of all types are very flexible. The applications are many, ranging from renovation, vacation, unforeseen expenses to the need for new appliances. In addition, more and more loan companies are offering such loans, which has made it much easier to obtain a consumer loan.
Cover more loan needs
The increased popularity and use of consumer loans has resulted in different types of consumer loans to meet more loan needs. Alternatives to SMS loans, ie micro loans, have become more and more common. What characterizes these micro loans is that small sums, usually no more than $ 5,000 or $ 10,000, that you can easily get when you are in urgent need of money. Alternatives to SMS loans and other micro loans have a more limited scope than regular consumer loans, because the point of such loans is that they should be used to cover unforeseen expenses. The advantage is that very few claims are made and you have the money in your account on the same day.
Although alternatives to SMS loans and other micro loans and small loans can be of great financial help in your everyday life, there are a few loan pitfalls you should avoid so that the loan does not put you in an uncomfortable and confusing situation.
These are the 5 most common consumption traps
There are especially 5 consumption traps that you need to be extra careful with because they can quickly ruin and complicate your finances.
- Forget comparing alternatives to SMS loans and micro loans. It is a major disadvantage not to compare loans, even though the loan amounts on micro loans are small. There is a large price difference between banks and other lenders, and when it comes to interest rates there can be many percentages. If you forget to compare loans you may end up having to pay a lot more than what is strictly necessary. Before applying for SMS loan alternatives, you should compare loans with multiple operators. In this process, you must also remember that it is free to apply for all types of consumer loans, and that it is completely non-binding to compare loans.
- Forget about using a finance agent. Most of us do not understand the terms of alternatives to SMS loans and other micro loans, which is why we may end up with bad loan agreements. Therefore, you should use a finance agent when you need micro loans such as SMS loans. Finance agents specialize in unsecured loans, and they can help you get the very best loan deal. An added benefit for you is that you save a lot of time and resources.
- Underestimates the cost of taking up alternatives to SMS loans. Although alternatives to SMS loans and micro loans are generally about small sums, you still need to consider whether you can repay the loan you take out. There are interest rates associated with such small loans as well as the loan amount itself, and if you cannot repay the loan you will run into financial difficulties.
- Do not select maximum downtime. Although alternatives to SMS loans and other micro loans do not exceed $ 10,000, you can choose a long repayment period of several years. This is a trap you shouldn’t end up in. Once you have enough money, you should pay down the entire loan. If not, it is very easy to forget or avoid paying down the lump sum because other expenses always appear. In addition, a long down payment will mean that you will have to pay extremely much more in interest expenses.
- Takes up new alternatives to SMS loans and micro loans before the old ones are repaid. Although SMS loans and alternatives to such loans can be a good financial saving in everyday life, do not go into that trap of taking out multiple SMS loans and micro loans at once. If you take out several loans at once, it is easy to lose track of the loan, and it can be difficult for you to pay down all the loans, including the interest rates on the various micro loans. In addition, interest rates can rise on the loans, and it is also not unusual for you to pay a term charge of $ 30-50. For example, if you have 6-7 different alternatives to SMS loans, there will be around $ 3500 in term fees per year.
In general, you should be aware that alternatives to SMS loans as well as other micro and small loans are with some banks and lenders the most expensive loans you can take out with over 100% effective interest rate. That means you could end up paying several thousand extra in interest. Many companies that specialize in distributing small loans are based on the fact that you will not be able to repay the loan in a short time.
In order for SMS loans and other micro loans in Norway with payment note to be a pleasure and not a burden, you should avoid going into these loan cases that have been listed here.