Although it seems that a quick loan to repay a loan is a quick solution to problems, the opposite is true. Over time, you will find that you owe even more than at the beginning. Indeed, the indebted client no longer lends responsible institutions and those irresponsible only at high interest.
Mrs. Anna, who borrowed CZK 200,000 and at the end owed a million and lost her house, was convinced . She sent her story, which includes rogue creditors and the addictiveness of loans, for publication. She wanted it to serve as a warning to all those who would find another non-bank loan a suitable solution for an older loan. Because it’s not.
Mrs. Anna has repaid loans with loans and today she has nothing
Mrs. Anna comes from a village where she lived with her husband and daughter in a family house by her parents. The house needed repair, so Mrs. Anna took a loan of 200 000 CZK. They repaid the loan with her husband in order, but they didn’t have much extra money.
When her daughter later announced that she was going to get married, her parents wanted to dress her up for a wedding. It occurred to them that another non-bank loan could help – this time CZK 300,000. They thought they would pay the wedding and the previous loan.
But so much money in her account attracted Anna, and so she gave much more money for the wedding than she originally wanted. The previous non-bank loan thus remained unpaid and, in addition, repaid one higher. However, the installment money was missing and so it stopped paying electricity.
When they disconnected, they took another loan and the debt gradually climbed to one million crowns. Mrs. Anna lost her house from her parents and now she and her husband live with her daughter in a small apartment. She applied for debt relief and is still awaiting a verdict.
The execution loan does not stop the debt spiral
Doubtful providers offer a so-called execution loan, but fortunately, Mrs. Anna resisted. Although it was a difficult decision, she gave up the house and property. But now he has a chance to start a new life without debt. The execution loan is nothing more than another non-bank loan to repay the loan and you will not stop the debt carousel with it.
This product is offered by providers who only benefit from the unfortunate life situation of borrowers. Their interest certainly not helps, on the contrary, they are susceptible to your property when you are behind the door executor. Therefore, do not forget the basic rule that repaying a loan with a loan is not a solution.
7 tips for safe money lending
Any non-bank loan should not be considered without thought, and although many articles have been written on this topic, it will certainly not hurt to recall the most important advice:
- Do not borrow more than you can repay.
- Borrow only the necessary things.
- Read the terms of the agreement carefully.
- Borrow only from trusted institutions.
- Keep a reserve in case of loss of income.
- Solve repayment problems as soon as possible.
- And most importantly – do not repay loans with loans.