In recent years, SMS loans have become very popular in this country. The reason for this is not so strange, since it is a very easy way to get some quick money that you are currently in need of. This form of loan often has fairly high costs, which makes it extra important to only borrow if you have full control and can afford it.
What is an SMS loan?
An SMS loan is a so-called micro loan. This really only means that it is a small loan that you take. These loans are unsecured loans that you take and are expected to repay within 30 – 90 days. This means that there is a very short payback period. The loan amount you can apply for ranges between about USD 500 and up to USD 10,000.
Criticism against SMS loans
SMS loans have received a lot of criticism lately as this type of loan has put many people in financial difficulties. However, it should be clear that an SMS loan does not have to be a bad form of loan to take. There can clearly be situations when it is considered worthwhile to take out a loan. The important thing is that you make sure that you will have money so that you can repay the loan when the term expires. If you have this and think it is worth putting down the money it costs to take out the loan then it is just to drive on otherwise you should not take an SMS loan. It is important to think carefully about the situation before deciding anything.
To think about when taking an SMS loan
Make sure you have money to pay back the loan when the loan period expires. If you do not, there is a great risk that then you will encounter financial difficulties. First, you probably get to pay a delay fee and also late interest and after that the loan can go on to debt collection and then it really starts to build on in extra dollar.
An SMS loan is really just a micro loan applied through the phone. Costs etc are exactly the same which means that you might need to check the micro loans instead. The advantage of micro loans is that several lenders lend in this way. Everyone lends money through their websites while only some have what can be called real SMS loans.
An SMS loan of USD 1,000 costs about USD 300 in various fees. The fees can be, for example, in the form of interest, registration fees, etc. Think about whether you think it is worth paying this amount for your desired loan. When the loan gets bigger, the costs will also go up, is it or loans of USD 10,000, for example, it will probably cost USD 1,000 or more.
When comparing lenders, it is important to check how much of the cost is in the form of fees and interest rates. Because you get back 30% of interest costs when you declare. In the large comparison we have of micro loans here on the site, we print both what the loan costs in the first position and how much the cost will be after the interest deduction.