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How not to fall into the debt loop?

Tough times call for tough solutions. In many cases, people choose to compensate their holes in their home budgets with quick loans. Unfortunately, there will be a real debt loop in the future for many of these people. These people will start to incur further debt to pay off their previous obligations and their debts will grow more and more. If you want to learn how to avoid falling into the debt loop , first of all, you need to know the mechanism that causes it. Contrary to appearances, it is not difficult to fall into such a loop. You only need a few careless steps, sometimes even one loan for a purpose, which is just a simple whim and it turns out that there are so many debts that it is difficult to pay them off. Getting out of such a situation requires a great deal of self-denial. A popular saying is that prevention is better than cure, and in this case it is also better to get acquainted with the mechanism of the loop formation before than to break free from it later.

The debt loop - what is it?

The debt loop is a situation in which the indebted person takes subsequent loans to pay off previous liabilities. Despite the fact that she manages to pay off her previous obligations, her debt is growing. After all, each loan and each loan come with a commission and other fees, which consequently mean that we have more money to repay than we borrowed. By borrowing $ 100, we can finally have up to $ 200 to be repaid. In the case of higher amounts, for example $ 10,000, the borrower may ultimately have to pay up to $ 20,000. If he takes another loan to pay this liability, apart from those $ 20,000, he will have to pay additional money - even $ 40,000. Being in debt to repay previous loans causes us to fall into a kind of loop from which it is difficult to break free. The debt loop concerns thousands of Poles. These people did not realize how difficult it would be to pay off these debts . Nor did they know how to avoid falling into a debt loop and were taking unwise steps.

Payday loans can lead to debt

Despite the many advantages that online loans have, you must be aware that this type of loan can lead to a situation in which the borrower becomes absolutely insolvent and will get into a debt loop . Surprisingly, it is not difficult to lead to such a situation. Online payday loans can be taken in a few minutes. All you need to do is complete the application, send it to a loan company, and you can have the decision and money on the same day. The ease of taking such a payday loan without BIK makes it willingly taken by people who do not really have enough income to pay off the debt. Due to the lack of checking at BIK, i.e. the Credit Information Bureau, the loan company is not able to assess whether its potential client is solvent. He often grants payday loans to people who are not solvent. Not only that - currently payday loans for those in debt are popular on the market, i.e. special payday loans dedicated to people who have debts in other companies and use these payday loans to pay off their previous debts. Such payday loans have very high interest rates, because the risk of non-repayment is high, and the loan company wants to be more secure in the event of non-repayment, and therefore the interest rate on payday loans may be a threat. Unaware customers don't realize how not to fall into the debt loop . For an unaware customer, a loan can be a simple recipe for falling into debt . These types of loans taken by people who do not have sufficient earnings or do not know how to manage their budget can become a double-edged sword.

What to do to avoid falling into the debt loop?

Prevention is definitely better than saving a tragic situation. If you do not want to run into debt and prefer that the debt loop never applies to you, you need to think carefully about whether you really need a loan. In many cases, we take payday loans on impulse. We envy the neighbors of the new TV set, we envy our colleague's shoes from a world designer. We want to send our children on holiday we can't afford, or buy a better car, even though the current one is still quite good. These exorbitant ambitions, which we cannot really afford, drive people into debt.

The first step, and perhaps the most important step that will allow you to avoid falling into the debt loop , is to actually assess your financial capabilities. We are a nation that likes to show off and or have too much of everything. This is what makes so many Poles fail to check how real their financial possibilities are, while these do not look too rosy. If you don't need to buy something because you don't absolutely need it, don't do it. Think realistically whether it is possible to pay off your debt even if your financial situation deteriorates. It is better to question it a few times than look for a way out of the debt loop later.
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Comments on the debt loop

I believe that one payday loan is the maximum. And when someone clogs another hole after the previous one, this is how it ends ...
Ariana Jun 25, 2019 11:54 am
First of all, you need to have a debt repayment plan and be consistent in your actions. I cannot imagine taking a payday loan and not thinking about how to pay it back. I would have a ready schedule of what, how and when. This is the basis for not falling into debt loops.
gucia 03/07/2019 16:12
You must have a head on your neck !!! And think !!!
Neighbor 03/06/2019 17:39
If someone is carefree and cannot move his head, he will fall into it anyway
Bottle cap 03/05/2019 16:00
It's best to just not take these types of loans at all. Then we will definitely not get lost.
Wiktor 01/28/2019 16:54
I always say that everything is for people. But you have to be sensible! Because everyone can take a payday loan one for another, but you have to think about what will you pay for it later? This is how you get into the debt loop.
Marta 01/08/2019 17:04
Unfortunately, I know people who got into such a situation. It is not an easy matter because it is difficult to deal with such debt, which is still growing due to interest. When taking any loans or credits, you must always have your head.
Anna November 22, 2018 5:50 PM
If you do not want to fall into the debt loop, just do not take payday loans :) With the first loan of this type, there is already a chance for problems if you do not pay it back on time. And interest is rising very fast. I had a similar problem myself once, fortunately my family and friends helped me get out of this situation. Hope it never happens to me again.
Renata 08-11-2018 18:32
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