An SMS loan has the advantage that you can get a small amount really quickly. A regular SMS loan (or micro-loan) is normally from about USD 1000 and up to USD 10,000, but many times loans of just a few thousand notes attract – and how quickly you can get the money in the account once you get approved.
It is very different what the money is used for
Some get an unexpected expense they have to take care of and have no buffer saved, so they have to borrow, while others want to buy something right now without waiting for the next salary. In some cases, it may simply be that the money is not enough at the end of the month and a little extra is needed to make it go around.
There are times when it is ok to take an SMS loan but every time you borrow you should think about how much it costs and what disadvantages a loan of this type has. Unfortunately, many people borrow smaller amounts when they really should not borrow at all. Of course, it is up to everyone to decide on their own finances, but here is some info on different alternatives that may be better than a loan in some cases.
When should you not take an SMS loan?
Before we come to any alternatives, it is best to first write something about when you should avoid fast loans of this type. The most obvious thing is that one should not borrow money to cover the cost of other loans or as a way of paying bills and costs for which there is no money. If there is no money coming in in the near future that can cover the money you borrowed, it means that you will only have trouble repaying the loan when it is time, and it is usually time after just 30 days or so.
A loan entails additional costs in the form of interest and fees and if you were short of money earlier it will not be better when you also have an SMS loan to repay. If you cannot afford to repay, it will be even worse as there will be late interest and late fees and then it will quickly become expensive. In addition, the case goes to debt collection and the Kronofogden fairly quickly.
You should also avoid borrowing just because you feel the urge to buy something that you cannot afford at the moment. If you see that new stylish mobile phone or winter jacket or necklace but do not have any money in your wallet, you should think carefully if it is so smart to buy it right now. Even if you get new money in a couple of weeks, it is still a bit unnecessary to borrow and have to pay interest and fees just because you can’t wait these weeks to get what you want.
Alternatives to SMS loans
There are a number of different options for you who want to find a solution other than taking out a loan. It is not certain that these solutions are necessarily better and we do not want to market them here as better and smarter alternatives to SMS loans – it is rather about explaining what alternatives are available.
Wait and save money
The very best thing you can do if you need money for something is to save that money together. You wait until you have collected a sufficient amount and then buy what you need. Of course, such a solution does not always work. If there is an unexpected cost for something that you have to pay directly, for example that the fridge breaks, you can not wait and save money.
In this case it is the use of a savings buffer. It is saved money that you have for emergencies, unexpected expenses, reduced income and such. It is a strong recommendation that you try to save together a buffer so that you are ready for future financial stumbling blocks.