Payday lending in Sweden, UK and the USA

Today, the use of payday loans among the young people in Sweden is causing huge problems with debts. Accessing these loans is very easy. You only need to send a message to one of the companies offering them.

According to statistics, the average amount of SMS loans borrowed in the country within one day is $300. The average interest and arrangement fees amount to around $50. But also, the borrowers have to repay these loans in less than a month. In the year 2015, the debt recovery agency in the country had to collect over 20,000 debts that people owed on these loans. Around 35.9 percent of these loans were granted to individuals between the age of 18 and 25 years.

In 2015, the Swedish government ordered companies providing these loans to review the interest rates and charges. This step banned the lenders from charging higher interest rates than that of the initial loan. Most of the SMS loans advertisements in the country target the young people particularly those in need of cash to buy clothes, or even night out. And because the loans are instant and easier to get, most young people are going for them.

The situation of payday loans in the UK

In the UK, people can borrow up to $3000 from online lenders, and they can repay the amount on their next pay date. First-time borrowers can get $600, depending on the SMS loan lender, but after they have repaid the loan successfully, they can borrow larger amounts. The amount people can borrow highly depends on some factors such income, credit history and lender’s criteria. Since the borrower has to repay the loan on their next pay date, they typically last for 7, 14 or even 21 days. However, some lenders allow a period of 60 days or 12 months.

The payday lending industry in the USA

In the United States, things are not different. A larger percentage of the Americans are relying on payday loans solely. According to financial experts, people relying on the loans may find themselves poorer. That means SMS borrowers make around $22,476 in a year and pay around $458 fees. However, around a quarter of these borrowers pay $78 or even more amounts in fees primarily because of repeat usage. Consumers using a mobile loan in the US remain on the lender’s hook for 199 days or around 55% of the year. These loans are lawful in around 36 states, and the charges are lower in states which regulate them.

To find out more about how SMS loans work in Sweden; besök webbplats


Insights on Payday Loans

prod-pdlFacing a financial problem can be challenging, especially if your wage is low and you don’t have enough money from one month to another.

A payday loan or an SMS loan can be a wise decision to make if you face a particular financial challenge, but it shouldn’t become a habit.

However, if you have a long-term problem with your money, it should be better to consider different solutions.

Let’s see some tips and hints about payday loans, as this could help you out in your times of need.

A Thorough Research

Before you choose a financial company to assist you with your short-term loan, it’s important to do a thorough research for finding the best offer on the market.

The interest rates can vary from company to company, and for the same sum of money that you take from them, you could pay less or more.

A Savings Account

Opening a savings account is another solution that you can use when you face financial difficulties. You could go to any bank and deposit 5% from your paycheck every month. You could also talk to your employer to deposit that sum of money directly into your account, and you’ll have a good amount of money by the end of the year. You might notice a slight difference in the wage, but you’ll have your savings when you need them.

The Right Sum

If you still need to make a payday loan or any other type of short-term loan, it’s better to be cautious about it. It’s a rule that everyone should apply – you need to take only that sum of money that you will be able to return in due time.

It might be tempting to take more, but when the payment time comes, it will be harder for you, because the interest rates are quite high.

Small Loans

If you can’t pay back your payday loan, it’s better to look for another solution instead of choosing to roll over the credit.

Some banks offer similar short-term credits that you can use to cover your payday loan. The difference here is that the bank will have a lower interest rate, so the sum that you’ll have to pay each month will be smaller. The other no-faxdifference is that the bank will ask for your credit history. If you have a bad credit history, the chances are that you won’t receive a very high amount of money.

A Credit Card

A credit card should be used only in case of emergencies. It’s good to have a credit card, but you need to let it untouched. It means that you don’t have to withdraw money from it unless you need to. If you require paying your payday loan, the credit card can be a good solution. The interest rate for returning the money is lower than the interest rate for paying off the payday loan or than rolling over your credit for another month.

Credit Counseling

Some people take more credits than what they can afford to pay back, and this leads to a debt spiral that is hard to avoid. If you’re in such a situation, it might be best to talk to someone fro a consumer credit counseling agency.

They have specialized personnel qualified in dealing with financial difficulties, and you can receive the best professional advice. With their help, you can gather all your credits into one and pay a smaller interest rate, or you can create a payment plan.

No matter what you choose to do, it’s best to see someone who is qualified and specialized in finances, because the financial problems are the hardest to deal with.payday_secgirl

No Overdraft

We know that it’s tempting to have a large sum of money on your card, but it’s better to avoid having an overdraft card. If you live from payday loan to payday loan, and from paycheck to paycheck, it’s better to limit the card and use
only what you have. If you choose an overdraft card, you might get into a debt spiral due to the fees and interest rates.