Watch out! Loans are no solution for high debts.
If you need a cash injection or are in a pinch, online loans entice you with attractive interest rates and easy availability. But beware!
If you need an injection of cash or are in a tight spot, online loans entice you with attractive interest rates and easy availability. But beware!
If one realizes that more than 50 percent of the Swiss use the Internet for their banking transactions, the growing affinity to
Online financial offers more than understandable. Especially when you need a cash injection or are in a tight spot. Online loans entice with attractive interest rates. FinTech business saves costs in human resources and infrastructure, which has a positive effect on customer-friendly conditions. Also with the processes. The processing, approval and settlement of orders via digital platforms are simply faster. Many things can be automated, standardized and thus also costs reduced. In professional circles and the media, it is assumed that the bank advisor in the branch is one of the professions that are no longer considered to have a great future.
Creditworthiness is a must – even for online loans
However, anyone who thinks they can save themselves the credit check with an online loan is mistaken. Banks have interfaces to all credit agencies and receive the information on entries of the credit applicant within a very short time. Who has debts, a current dunning and debt collection proceedings or a credit default, which is rejected due to lack of creditworthiness even with the reputable online providers. Consumers with debts are generally advised not to take out a loan, as in many cases this is one of the causes of payment difficulties. A problem that often only starts during the credit period; the installment burdens the budget from a certain point on, other cost items such as tax bills, health insurance premiums or unexpected expenses were not taken into account during planning. If one is in arrears with one or more installments or has to agree on a reduction of the installment with the lender, this is reflected as a negative entry in the register of the ZEK (Central Office for Credit Information) and other credit agencies.
Baiting customers with false promises
Particularly aggressive providers in the market try to lure customers with small loans by not even raising possible concerns. Your credit check is carried out quite superficially, the application is quickly waved through. If the borrower has problems, the friendliness quickly comes to an end. Then the usual industry and market mechanisms apply. Reminder, debt collection, garnishment. If you're smart, you'll look for other solutions to your financial problems. A loan doesn't help, even if it is linked to a full-bodied promise of "no Schufa", no ZEK". Even if this is the case, you will have to pay back the loan in any case. Your disposable income must be sufficient to cover the monthly payment and your household must be able to compensate for this economic burden – over the term of up to 48 months.
It is better to pay off debts than to take a risk
The federal law governing consumer credit (KKG) is strict. It only allows loans to be granted if the borrower is a risk-free customer and is not in danger of getting into debt. He must be able to repay the loan amount and he must have a "clean slate" in the credit check. From "borrowing money" to pay debts (ex. tax) is not advisable. Debts are not solved with new debts, even if some states try to do exactly that with their borrowings. The country debt burdens the national economy. Commercial debt counseling and financial rehabilitation providers can identify and implement other options that successfully help indebted consumers out of their situation.