‘Drop by drop’ loans become increasingly common in Colombia. And, stop receiving income for a fixed salary is perhaps one of the main concerns of a common citizen and can lead you to commit erroneous financial acts.
Although an employee receives an amount of money for compensation, it is not enough for him to survive for a long time. This situation leads him to borrow from friends and family, make advances on credit cards and, drop in loans drop by drop.
What is a ‘drop by drop’ loan
In Colombia, they are increasingly popular. These are credits that are offered to the applicant without the need for guarantor or other guarantees. With amounts of up to 5 million pesos and fairly short payment terms, these types of loans can cause real problems.
This type of credit is already crossed out as a scam. Interest rates move between 20 and 200%. It results in delays in payment, increased personal financial crisis and violent charges.
What are the consequences of asking for a credit drop by drop
Since a large number of requirements are not required, the amounts do not usually become very high. But, if the applicant has some kind of guarantee, the amount can be raised to dangerous amounts.
Those who go to agiotists, usually do not have a fixed salary or are not banked. These are people with limited resources. According to the website ‘Solve your Debt’ 44% of the people who requested between 500 thousand pesos and one million, ended up paying between 15 and 20% interest.
Tips to prevent being scammed with fraud loans
- Analyze the magnitude of your current situation: Think about your situation and evaluate what or who is due. Calculate your income and your current money outflows. Now, solve whether or not you can enter one of these express loans.
- Evaluate again if you need a loan: You now have the opportunity to rethink it. Drop by drop loans are not always the best option. Evaluate other best possible departures.
- Don’t make it a vice: Even if you could get out of one of these loans, remember that they can become an addiction. It is always better to have real money and avoid borrowing.
A bank can offer you better rates and it is much safer. If you are thinking of accessing large loans and mortgaging your home, it is best to hire an expert.