The fast payday loan industry has undergone major changes from the fact that it all started with the sms loans to the very large range of all types of loan types today. The fast-loan industry began with sms loans early last decade and has since undergone one change after another. Previously, these loans were applied for via sms, and only sms. However, this was primarily because the internet was not as developed as it is today. Mobile phones did not have internet as standard but it was mostly with SMS you communicated when you did not speak on the phone.
Today, every telephone set has internet. Even the few home telephones that are left have the Internet today – something you would not have imagined just a few years ago. In line with this, it has become increasingly easy to do everything possible, not least to apply for a loan and this has led to the major changes in the fast-loan industry and the sms industry.
If you want to apply for a fast payday loan today, you usually do not need to send an SMS, but it is enough to instead just navigate into the lender’s website and fill in their e-forms, submit it and then get the loan approved or rejected.
The fast payday loan industry gets new rules 2018
In 2018, new laws and regulations for fast payday loans and sms loans were added, which has caused the industry to take a big hit when it comes to the source of income (interest rates primarily). In the past, fast payday loans were extremely advantageous in the short term, eg for a loan that they hoped to pay off in a few months or weeks. You could even find lenders who offered such loans for free. The blow came if you did not pay on time. Interest rates could skyrocket and you could end up in bankruptcy mode if you didn’t escape the trap.
These problems, which were usually not deliberately introduced by the lenders but lay in the nature of the fast-loan industry (fast payday loans are applied by impulsive people who do not plan their finances so well and can end up in bankruptcy situations they do not expect), the government is trying to solve with different rules and the new The rules that were created last year are part of this initiative.
Now lenders must not take too high interest rates
The interest rate cap prevents situations in which interest rates rise. Instead, lenders now need to find other ways to increase their income. One way is to increase the administrative fees, which has led to quick loans becoming less favorable and a little more expensive. This also acts as a barrier for impulsive borrowers who often borrow because fast payday loans are cheap, simply.
Collateral loans help people who put in the debt trap
After all, if you end up in a situation where you have several loans and are unsure how to pay them – for example if you borrowed from one lender to pay off another and such – then new lenders have now started offering so-called collateral loans . The idea behind these loans is that the lender pays off the borrower’s previous loan, offers a better interest rate as a whole and then lets the borrower pay off just one loan from the new borrower. This has helped a great many avoid the Krofogden, get out of the loan trap and even avoid bankruptcy. For those who feel that this situation is approaching them, you cannot recommend a mortgage loan enough. One of the best ways to avoid a potential loan problem is to collect loans at low interest rates. If you feel this may be a reality for you soon then check it out. Make sure you avoid future problems!