When there is a citizen Difficulties in paying some of the necessary expenses in everydayFilling the cargo, adjusting the damaged refrigerator or dissolving the monthly fee MortgageIt is common in times of seeking funding provided by banks and other loan companies.
The problem in this practice can be you Lose control of your personal funds It is difficult to quit without realizing the cycle of debts. Because today when you request Quick financial or credit card.
The lack of guidelines for controlling crime in certain companies leads to excessive things to consumers as a result of known people ‘Snow ball effect’, This refers to an uncontrolled accumulation of debts. This is similar to the end of a snowball on the slop of a mountain: first it is small, but It accumulates more snow when it descends Its size is increasing.
“One of the main issues that arise when there is no control of our funds. If we do not pay attention Increase our savings on a certain percentage, and the income we receive is compared to almost costs, Our pocket will meet damage and it will cost upside down“, Explains Santander bank On its website.
Credit cards, minicredies or staring cards They are some of the existing financial products that may end up creating a ‘snow ball effect’ because their high interest is impossible to express debt to many citizens.
According to a statement Negotiation firmCustomers who specialize in debt re -coordination, on average, excessive loan They contract seven credits and all of them paid 1,900 euros per month.
Customer “captured debt”
In the recent judgment of the peak Rotating cardsThe High Court warns that the interests of these types of cards By 2024 it exceeded an average of 23%They lead to ‘snowball effect’ and qualify for the customer “Captivated debt”.
In this order, the Bank of Spain In this type of financial products: “Credit, despite payment, continues to grow and run The risk of chainsing an indefinite loan, which will never be paid“.
Rotating cards are the type of credit card that allows you to postpone the allowances you make. MarisaLegitimate responsibility to the Financial users’ association (ashfin), Explained in an interview 20 MinutosThe rotating loan “involves the most complex debt loan mechanism”, which many users do not know.
“Only a small part of the fee is intended to satisfy the contracting loan”. “So again and againAnd so the debt becomes eternal. “
For example, if a month’s purchase is worth 300 euro, one of these cards It can face 50 euro fees and postpone the payment of the remaining 250 eurosMonthly monthly, all loans that do not end the debt are creating a snowstorm of interest to threaten economic stability.
Leads to a small amount of large debt
If you cannot face the income allowances required for credit companies, something similar can happen in the case of quick budget, minigrade or credit cards You are forced to request a loan again To deal with the previous one.
This decision leads to “directly dangerously dangerous’, which leads to, which creates The accumulation of debts due to the inability to refund previous“, Warns Azfin.
In terms of minigrade, it is a small amount – 50 and 600 euros – with a very short revenue period, usually a month. Money is requested in a way Online They enter your account in a few minutes. Of course, the interest in repayment is usually the most: About 1%of the requested amount daily.
Thus, for a rapid loan of 300 euros to 30 days, The total amount to be refunded by the customer is about 390 euros. In this way, the interest is 90 euros. New customers are common in many companies, first offering without interest, which is a good business strategy that will attribute the customer for the first time.
If you cannot face that amount, the 390 euros are requested by another company to pay another debt, which is exclusively to pay due to the first loan. So you enter a hard departure. “The end result is that You are entering a severe financial problem to a very small“,, The phrase of Asoufin.