A basic guide to quick loans & sms loans

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We live in a hyper-consumer society which is also felt by the urgent need to pay a debt, buy a gadget or do something else that requires immediate payment. In this post, we focus on why the need for quick loans exists and what you should think about if it arises in your finances.

What does quick loans mean?

quick loans mean?

All fast loans, which include, for example, SMS loans, Internet loans or mobile loans, are in the pure term called fast loans. There are smaller amounts of loans that will be repaid over a relatively short period of time, but you can also borrow larger amounts on certain loan companies and pay with longer repayments.

What charactersizes fast loans is that there are usually high fees and interest rates, and together they are called the effective interest rate. Many loan companies use the term “0% interest”, but this does not mean a free loan, because of the many fees that always apply.

Typical for fast loans is that these are quite small amounts, between about USD 3,000 and USD 10,000, which often have to be repaid already after 30 days.

You pay both a fee when you take the loan and interest on the loan. The total cost, the effective interest rate, can be extremely high because the repayment period is so short. It can reach hundreds or thousands of percent.

Before taking a quick loan, it is good if you compare the effective interest rates of different companies, as both fees and interest rates can vary widely. It may also be wise to see if there are other ways to borrow money to solve an emergency situation.

SMS loan – the classic hypersensitive loan

The absolute fastest way to borrow money is to request an SMS loan. Nowadays, there are a number of actors and loan companies that provide loans to different amounts on almost every individual, provided they are of legal age.

How do you do when you want to take out an SMS loan, then? You usually go to the actor’s website and apply directly and within a few minutes you get the answer via sms and the sum paid out in the account.

5 tips on what to think about for a quick loan

Here are 5 indispensable tips for those in choice and qualifying to take a quick loan.

  1. Do you really need to take out a loan? Ask the question and avoid the loans if you can instead wait a month until you get your salary, borrow from a friend etc.
  2. First, make sure to compare different loan companies to see which offers the best terms and benefits for customers.
  3. The most important thing you should look for is how much the interest rate is and what fees are added. These can vary considerably depending on the payback time you choose if you can choose one, that is. Some companies offer multiple payback times, but the fee and interest rate can then skyrocket.
  4. Always make sure to borrow so much money that you know with you that you will be able to repay the amount after the term. Use common sense when borrowing!
  5. Always pay on time to avoid additional charges. Unfortunately, many young people get this problem, which leads to a vicious cycle when they take out another loan to pay off the first. The risk is that you end up at Kronofogden and receive annoying payment notes.

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