15.03.2023

HOW TO REFRAIN FROM WITHDRAWING QUICK LOANS

How do some businesses profit from quick loans? Is there a disease called "quick loans" and how to cure it? Are the people to blame, are the excessively high interest rates to blame, are the laws to blame... Where is the root of the problem?

It is not the fault of the one who eats the pie, but the one who gives it to him. The credit market is a "very big pie" in our country, because literally billions are given out as loans. This segment of fast loans is growing at a very high speed, because more and more people prefer to take out a revolving credit quickly, where you do not have to prove your financial capabilities, respectively - to return it in the fastest way.

However, it often happens that people withdraw - withdraw, withdraw - withdraw, until some life event occurs, which suddenly interrupts this cycle, and this causes irreparable damage to the debtor as a result, because he becomes an eternal debtor. The moment you stop repaying, other lenders start offering you credit too, you start refinancing, you fall into a cycle where you take out a loan to repay your previous one... The price is too high.

Loan companies are legitimate. However, the extent to which the product they offer is legal is another question.

Unfortunately, the law is not well developed enough – changes were made to the Consumer Credit Act, which to some extent limited unlimited usury. Before that, there were quick loans that reached 200-300% in one year.

The law is imperfect and incomplete and allows for a number of circumventions. Therefore, it is the court that is currently writing the law, and probably thousands of decisions are issued every year, with which it is established that the debtor does not owe so much money to the creditor...