Fast loans, just like any other cash loan, must always be taken responsibly, weighing all the pros and cons. Fast loans are short term loans with short maturity and high interest rate.
They are one of the least profitable types of loans
Easy credits are easy – all you need is a computer with an Internet connection. It is because of the ease with which these loans are obtained that many people prefer to get instant credit rather than save money themselves. The main purpose for which fast loans are meant is emergency situations where extra money is really needed urgently.
Such situations are, for example, an emergency visit to a doctor, accidents or accidents, unexpected car repair expenses or lack of money to pay for renting an apartment.
In any case, quick loans are for unforeseen and urgent emergencies
Unfortunately, since these loans are easy to obtain, especially when the amount required is very small, such as € 150, some people think they can use these cash loans for other purposes, such as weekend entertainment. No matter how tempting this offer may seem, fast credits should never be taken for entertainment.
Since 2007, when fast loans first appeared in Latvia, credit companies have set strict rules to limit the public’s access to fast loans. In the past, people took money loans more often and irresponsibly because the consequences were not as painful as they are now. Loans were available to every adult citizen of Latvia – not only young people, but also representatives of other age groups often used these cash loans for entertainment purposes.
Unfortunately, many borrowers were heavily indebted, trying to repay one loan over and over again until they fell into an unenviable ‘credit trap’.
Fast loans have a very high-interest rate to pay for using a loan
Of course, many quick lenders now offer new customers the opportunity to take advantage of free or interest-free credit, which means they have to repay exactly the same amount of money at the end of the repayment period as the person originally borrowed. In other words, if the debtor borrows 100 euros, he will have to repay the same 100 euros after one month. If the borrower realizes that he will not be able to repay the loan on time (usually the maximum repayment term is 30 days), lenders offer the option of extending the repayment term. However, there is a charge for this service. In addition, if the extension is used by someone who has free credit, then the loan becomes a quick loan with all interest payments.
Using fast credits for entertainment is a frivolous and unwise decision . Of course, not always do you end up with a debt collector for such purposes, but irresponsible use of credit can make a person overpay much more than he would have had to spend his weekend alone.
It is no secret that for many people, weekend entertainment also involves drinking alcoholic beverages. Of course, a glass of wine cannot bankrupt a person, but unfortunately, not everyone is limited to just one glass. When under the influence of alcohol, one is even less able to think rationally. Perhaps, if you want to stand out from the crowd or stand out in front of your acquaintances, the borrower will spend even more thoughtlessly. Alcoholic beverage prices in bars and clubs are already quite high, – borrowing from creditors to drink is definitely stupid. Indeed, such irresponsible borrowing can lead to large debts. Likewise, fast credits should never be used for gambling, where cash prizes depend on luck, which in most cases is very rare.
When using quick credit for entertainment, one does not always pay enough attention to how the credit will be repaid, so to speak, ” Morning wiser than evening “. Quick loans are definitely not a situation to use in this statement, because before you submit your loan application, you should always know for sure that you will be able to repay the money on time.
Of course, if a person has a solid income and knows that next week he will receive a salary to help repay the loan, then someday such use of the credit may be acceptable (but this is wrong!). But if it’s already commonplace and a person is considering borrowing for the fourth or fifth time in a year, then it’s time to worry.
If a person uses fast credit but doesn’t think about how to pay it back, they can also end up in fairly large debts
The first step that may indicate that repayment problems may be prolonged is to extend the loan repayment term. This means that one will definitely overpay for this irresponsible cash loan. Large amounts of interest begin to accrue on long-term loan repayments.
In the worst case scenario, people may also lack the money to extend the loan repayment term. After that, the debt interest is already calculated, which is also very high. In the event of such an emergency, when the debts are greater than they can cover, one may try to borrow again to pay off the debts. It certainly never needs to be done, because repayment of credit with a loan never ends in the way that the person intended. As a result, creditors are forced to involve debt collectors, at worst everything goes to court.
Here’s what a bunch of trouble can be caused by seemingly innocent borrowing for entertainment
Loans, especially quick loans that are so easy to get, should never be taken irresponsibly and even more so for frivolous entertainment. The fact that people need money to go out for fun is to be seen as a warning signal about the difficulties of money. If your own finances are not enough, you should never use instant loans.