The Right Way to Avoid Online Loans – Nowadays, it is easier for people to borrow money because of online loan applications. However, borrowing money on an online loan has risks and must be repaid within the specified due date. If you don’t have the ability to pay the installments every month, it’s better if you don’t apply for the loan. The ability of online loans can be accessed by many people compared to conventional loans.
You just need to show some personal documents, everyone can now immediately become an online loan customer. The use of loan funds is also free according to the wishes of the borrower. However, online loans are very suitable to be used to address urgent money needs. On the other hand, online loans can also plunge finances if used in an inappropriate way. Because of the convenience provided, not a few have become online loan customers who become addicted and use them to meet needs that are not too urgent or even not too important.
As a result, the installments they will pay are almost impossible to handle.
Effective ways to avoid online loans
1. Legal credit access
Before making a loan, make sure you really need it and make sure to pay it on time. Also understand the consequences of the personal data provided and the sanctions if you are late in paying.
If you need funds that must be disbursed immediately, choose legal loans that are licensed and registered with the Financial Services Authority (OJK).
2. Pawn Goods
The first financing alternative that can be considered is the pawn of the goods or assets owned. Indeed, the risk is the loss of goods that are used as collateral in the event of default.
However, usually financing through a pawn will be cheaper than through a loan.
3. Develop a Strong Commitment to Pay Off Debt
Supposedly, before deciding to apply for a loan, you must already have a commitment to pay it off according to the provisions to completion. If not, there are various consequences that you must be ready to accept, such as a decreased credit score, late fees, and facing debt collectors. If the installments seem increasingly difficult to pay off, don’t try to run away. Instead, try to communicate your current financial condition with the lender. That way, it is not impossible that you will be given relief such as a decrease in interest rates, an extension of the repayment period, and so on.
4. Apply for Credit at the Bank
In addition, there are other low-risk options, namely applying for a loan from a bank or financial institution. Indeed, this method requires collateral such as pawning goods, and the process also takes a long time to get approved.
However, usually the loans provided will be much cheaper than borrowing. In addition, if the borrower has a credit card, it is very likely that he can get fresh funds by withdrawing cash from the credit card.
5. Protect personal data
Tongam said that the incident of receiving transfers continuously from illegal loans most likely occurred because the user had given out his personal data.
The personal data in question includes, among others, ID card numbers, account numbers, and telephone numbers. For this reason, he appealed not to give personal data to anyone without a clear reason. Tongam also warned, never to access loans from illegal loans.
“It’s hard to understand if someone immediately gets a money transfer without ever providing data on their cellphone number and account number. Therefore, we ask the public to be careful so that they never download illegal applications,” concluded Tongam.
6. Avoid Applying for a New Loan Again
The reason that often makes someone stuck in prolonged debt is that they like to apply for a new loan when the old loan has not been paid off. The same thing is also very likely to happen if you apply for a loan to cover other debt burdens or in other words, dig a hole to cover a hole. Back again to the explanation in the previous point, if the loan installments are increasingly unaffordable financially, don’t hesitate to submit it to the lender so that you can get relief.
7. More Open with Family
Financial matters are very sensitive issues, especially if you are married. Therefore, if you are experiencing this problem, don’t cover it up and try to tell your family. That way, you don’t carry the burden alone, can find solutions together, and manage family finances more efficiently.
8. Manage Finances More Effectively
Like using a credit card, there is no other more effective way to be free from online loan responsibilities other than eliminating unnecessary expenses and increasing income. This is important to do so that you have more funds to pay the debt installments. In addition, you can also sell or pawn some valuable assets to help pay off loan bills. If that’s still not enough, maybe you need to lower your ego a bit and ask a relative or relative for help. It seems sad indeed, but sacrifices like this are equivalent to the financial freedom that can be obtained after the loan burden is fully paid off.
9. Make Learning Valuable
No one is comfortable with having debts for a long time. Therefore, use this experience as a lesson so that you will no longer be reckless in applying for an online loan in the future. If you are forced to reapply for a loan, carefully consider the nominal amount to be borrowed, the repayment tenor, and the interest rate charged. So, you have only experienced the experience of paying online loan installments once.