The fact that it has been customary that micro-credit are not paid and goes to Kronofog is not new. However, unfortunately the trend that was positive has now turned.
When micro credit went down again in the middle of the 1990s, the number of cases at Kronofog also increased rapidly when it came to people who do not repay their debt. In 2010, it all turned around and instead the number of cases began to decrease at Kronofog. So a very good development.
Micro credit went down
But very negative is that during the second half of 2011, the unpaid loans began to increase again. This is something that must be addressed.
We write here on the site about micro credit and compare the prices of them. But our purpose is to constantly inform you of the costs and possible problems that may arise. We do not want people to borrow money that cannot afford this as problems will only get even bigger.
Then I should say that I don’t think you should ban micro credit, but anyone who wants to take this type of loan should also have the opportunity to do so. What should be improved is the credit check performed by the lenders. In this way, many who cannot afford can also be denied borrowing money which can be a tedious message to get but at the same time a good message to get.
A micro credit is definitely not right
Then you should definitely not blame everything on the lenders, but it is also the person who borrows responsibility to think through before obtaining a loan. If you feel doubtful if there is enough money to handle the repayment, a micro loan is definitely not right. micro credit should never be used to get out of a major financial predicament as the problem is only pushed one month ahead and gets worse. Then it is much better, for example, to cancel extra TV channels, eat cheaper food, sell gadgets, etc.
There is almost only one time that it is good to borrow if you have debts that have to be paid. And this is if you have many smaller loans that can be baked together into a larger loan, which in total is cheaper than all the smaller ones.
So it is important for everyone to think before applying for a micro loan. If this is done, the trend may be reversed to the positive.