By SMS loans you can borrow directly on the cell phone. It is a quick and easy way to borrow money on, but if you are not aware, they can end up costing you dearly.
It is said that there is no such thing as a free dinner. In other words, even if you immediately will be offered something that supposedly is free, so everything in this world has a price to be paid. However, there are SMS loans that offer you to borrow smaller amounts (typically up to 4000 DKK) where you only have to pay the borrowed back. No interest, fees, or costs.
It may sound very tempting, and if you can pay the money back within the agreed time, is there as a starting point, nothing to be worried about. But you can not it-or is you need to borrow more than a few thousand, so it’s really important that you familiarize yourself well into the cases, before you submit a loan request on SMS.
On the website our site you can compare loans-miscellaneous SMS loans, and in this way ensure that you do not end up in a debt trap of dimensions, for it is, unfortunately, more examples.
APR, interest rates and fees
When you hear about people who have ended up in an unmanageable debt due to a SMS loans, is it because the loan has not been transparent for the borrower. In addition to the amount, borrowed one must also pay interest and fees and there are many who miss or forget to take into account.
Interest can most relate to, while hidden fees and loan APRS (annual cost as a percentage) can be harder to figure out.
There is no ceiling on how high an APR must be, and there are many examples of it can be of several hundred percent.
In 2015, TV2 “Denmark’s most expensive kviklån”, where ÅOP’en was on dizzying 1023%,
which corresponds to a loan of DKK 1,000 with a maturity of 1 year, ends up costing over 10,000 kr.
Use common sense
If you are considering creating a SMS loans, you should consult your financial advisor before you accept the loan.
The Bank can more easily understand the consequences, and quite probably offer you a more attractive loan agreement.
So remember to use common sense before you lend money – whether it’s in the Bank or on SMS.