Kivisild.net

Sms- credit trouble in Estonia
This is a bad idea- pay one dept with another, bigger one…
Sms- credit is a fast money loan service, via the popular sms service in cell phones. The plan is simple. At first you register at the service webpage. After the registration you can send sms to your sms- loan service company, and few moments later you have the money on your bank account.

This is very fast way to get money. No paper job, no bank loans, etc. Sms, click- and here is the money. Now here is the main problem. The faster the money you get, the bigger problems you have. The bank loan percent is around 15% (simple money loan, no real estate), but the sms- service has 200% -300%! Imagine. It is very easy to get 50 000.- dept, when receiving a loan for 5 000.-

Unfortunately, many people do not care so much about their month budget, waiting for the next salary already in the middle of a month. Somehow the financial life should be helped, so the sms- credits are taken, what makes the situation worse. People start to paying for they flat loan by taking sms- credit, just not to loose the flat. But everything is understandable.

Survey what one of the sms- credit provider has taken had interesting results. Around one third of people, taking sms- credits own higher education. This means the problem is in financial education. Not everything is so bad, of course. The biggest part of ’sms- loaners’ are paying back loans, but why to take it at all?

Even the government started to pay attention to this problem. If in the beginning the loan interest rate was around 1000% and was only ‘one sms away’ ( you did not have to register, just sent account number, the sum, and here you go), now there is registration, and loan interest has fallen.

Never try to pay one dept with another one, never! Find another job, spend less, but never take a loan if you are not sure you can pay it back. Think about the future, and always look around the corner. The money does not just appear and disappear. When somebody is loosing money, the other one receives it.