Personal loans: how to avoid a financial accident

Personal loans: how to avoid a financial accident

That Argentina is a country obsessed with financial fluctuations, there is little doubt. We live by looking at the price of the dollar, country risk, inflation, the reserves of the Central Bank and other variables of the economy.

The problem is that obsession does not necessarily mean knowledge.

The current scenario marked by an overwhelming loss of purchasing power and an increase in unemployment becomes the ideal breeding ground for us to end up peeping ugly in money management and commit financial insanity that can cost us too much.

Days ago I received an email whose content I will then transcribe while preserving the name of the person who sent it. The case is very useful as an example of what we are talking about:

“Hi Nico, I am a follower of your blog and your courses for a long time. Although I do not put into practice what I read so enthusiastically. He encouraged me to write to you the fact that I made a mistake that is – now I see it well – serious financially speaking. I needed a small amount of money not to be out of the date of the minimum credit card payment and I got hooked on one of the advertisements that came to me by mail, offering a loan on the spot, depositing it in my account and debiting each installment of The same account once a month. I requested $ 6000 to pay in 3 installments of $ 3,500 each. First installment 3/10, second 3/11 and third 3/12. So far, acceptable. The issue is that I began to receive debits of $ 700, $ 1225, $ 1575 and when I found out what it was, I wrote emails and they didn’t answer me. I try to contact by phone and they tell you to call at another time, that the consultants cannot answer. I read the contract, which I had to read carefully before, and says that every time you use their web platform they will charge you $ 99, that they have your IP data registered, etc.

Anyway. What a mess I sent myself! To date, they try to debit $ 3500 apart from the $ 2870 that they debited before 3/10. I can not believe it. Now I suppose that the following is to try to cancel the total of this loan so that, according to the contract, I no longer charge the use of the Platform (which I do not use). That this serves to prevent so many that by distressing or desperate situations they may fall into these scam traps disguised as an immediate solution. ” and says that every time you use their web platform they will charge you $ 99, that they have registered your IP data, etc.

Anyway. What a mess I sent myself! To date, they try to debit $ 3500 apart from the $ 2870 that they debited before 3/10. I can not believe it. Now I suppose that the following is to try to cancel the total of this loan so that, according to the contract, I no longer charge the use of the Platform (which I do not use). That this serves to prevent so many that by distressing or desperate situations they may fall into these scam traps disguised as an immediate solution. ” and says that every time you use their web platform they will charge you $ 99, that they have registered your IP data, etc.

Anyway. What a mess I sent myself! To date, they try to debit $ 3500 apart from the $ 2870 that they debited before 3/10. I can not believe it. Now I suppose that the following is to try to cancel the total of this loan so that, according to the contract, I no longer charge the use of the Platform (which I do not use). That this serves to prevent so many that by distressing or desperate situations they may fall into these scam traps disguised as an immediate solution. ” Now I suppose that the following is to try to cancel the total of this loan so that, according to the contract, I no longer charge the use of the Platform (which I do not use).

That this serves to prevent so many that by distressing or desperate situations they may fall into these scam traps disguised as an immediate solution. ” Now I suppose that the following is to try to cancel the total of this loan so that, according to the contract, I no longer charge the use of the Platform (which I do not use). That this serves to prevent so many that by distressing or desperate situations they may fall into these scam traps disguised as an immediate solution.”

Similar situations must be happening to many people who have the financial rope around their neck and desperately seek an immediate solution, making mistakes along the way and falling into the worst hands. Next, we will analyze what happened so that your experience is not repeated.

Chain of errors and financial accidents

A very common mistake is to believe that a plane crash is caused by a single error when in reality all such accidents are the result of a chain of human and technical errors that lead to tragedy. It can be thought, for example, that from the first error in the operation of the system (road map, fuel, authorizations, technical checks, etc.) to the last one there are five links and that the fifth leads to the accident.

It is relatively easy for the first to occur. The second and third may even take place, but someone at some point breaks that chain and prevents it from moving into the room, leaving the fifth as a possibility so far away that it makes it look impossible, although we know that a plane crash is not impossible but highly unlikely.

How do you avoid tragedy? Thanks to SOPs (Standard Operating Procedures), which are standards designed to break links in a possible chain of errors.

We can make an analogy with the financial errors that lead to an accident like the one mentioned above, where a person is scammed by a company that, based on a signed contract, ends up debiting money from his account every month in a totally disproportionate way in relation to With the service it offers.

In the testimony cited we see how the victim talks about the need to ask for money to meet the minimum payment of the credit card. Consequently, it admits a first error that it does not recognize as such: the poor control of expenses, which leads to not being able to comply with the total payment of the credit card summary and having to resort to the minimum payment option, which It is equivalent to requesting a loan from the plastic issuer for almost all of what was spent at three-digit rates (at this time over 180% per year).

The second error consists in not counting at the expiration date of the card summary with the money needed to face that minimum payment when we know in advance that it will amount to 4 or 5% of the total spent.

The third mistake is a product of despair. We talked about searching (usually via the Internet) for a financial company that promises to credit us immediately in our account.

The fourth mistake is not to calculate the rate to be paid correctly. In the words of our reader, she requested 6000 pesos to pay in 3 monthly installments of $ 3,500, which gives a total of $ 10,500. This is a 75% interest in just 3 months, starting to pay already in the first. It is around 300% per year. As you can see, the “acceptable” agreement had nothing.

The fifth and final error that leads to this financial incident is to authorize automatic debits of our bank account to a financial company without having read the fine print of the contract or investigated its background before. On the web, there are many complaints about these types of signatures. They are not very difficult to find.

In your case, the search for solutions to a poorly addressed financial problem only aggravates the situation. Our friend went from an imbalance to a victim of a scam that led to a greater loss of time and money to amend the situation.

Conclusion and final tips

Some measures can be taken to prevent these types of scams such as distrust the extremely favorable conditions, detect misspellings in the emails received, to hurry or pressure you to decide threat of “missing the opportunity”, Receive a request for money in advance or a bad reputation on the website of the lender.

Unfortunately, there will always be birds of prey seeking to take advantage of the lack of financial culture of the population, but this situation is aggravated in contexts of high economic stress such as the current one (a few months ago we analyzed in the same line the case of those people affected by little transparent self-saving plans).

Expanding your knowledge in personal finance, distrusting magical solutions and, above all, staying alert to cut a chain of errors as soon as possible can save you. The traps are just around the corner. Do not mistake the way.

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