How to Wisely Use Loans So You Don’t Get in Debt

Armfalcon.com, JAKARTA — The Indonesian Joint Funding Fintech Association (AFPI) advises someone to borrow money as needed so they don’t get into debt when using online loan services or pinjol.

“Every person must have a need regardless of their income. For people with higher incomes, they will definitely use a credit card, just swipe, while others borrow from loans because it’s easy,” said AFPI Secretary General, Sunu Widyatmoko, in Jakarta, Friday (5 /5/2023).

Sometimes, someone needs urgent funds that cannot be avoided, even though financial conditions are not supportive. The current pinjol application is often a solution for getting loan funds easily and quickly, without conditions that are too difficult for users.

However, borrowers are often trapped in debt with increasing interest due to several things such as consumptive behavior, economic pressure, buying a new device, paying school fees, and low loan literacy.

Apart from making sure the service provider is official, Sunu advises someone to borrow money from loan services only when needed and the amount borrowed is according to need.

“Borrow as needed, if you don’t need it, don’t borrow. Borrow only because if there is no (loan money) life will be disrupted, then you can borrow it,” Sunu explained.

Sunu also reminds borrowers to pay attention to whether the amount of interest and installments is in accordance with the ability to pay. When you have considered all of these things, he added, the next step is to be disciplined in paying installments on time.

Apart from building a bad credit track record, being late in paying installments will also have other difficult impacts, such as fines and interest that will accumulate until you become a target. debt collectors or debt collectors.

A bad credit track record will make the user blacklisted so that he will find it difficult to apply for a loan in the future. Sunu added, the last tip for being safe from loan entanglements is to pay off all installment bills, before deciding to return to borrowing funds from the loan.

According to Sunu, these methods include basic things that must be known about borrowing money from loan services. If you are tempted to borrow money from a borrower because it’s easy, not because you need it, Sunu is worried that the borrower will have difficulty paying, so he does ‘dig a hole to close a hole’, borrowing money again from another person or institution so he can pay off the debt.

source : Between