Month: February 2020

Swipe here and there, this transaction using a credit card is very practical and profitable. But you need to be vigilant, because it can actually make ‘addictive’ in its use. Finally, credit card bills swell because of not being aware of more shopping.

Aside from excessive usage, there are several other factors that can cause your ‘magic card’ bill to increase so that it can become your financial burden every month.


1. Exceeds the maximum limit

loan limit

If the credit card application is approved, surely you will be notified of the maximum credit card limit that you get. Usually adjusted to your salary. If the track record for paying bills is smooth, then the nominal limit can be increased, even to the extent that it exceeds your income every month.

Of course, a large credit card limit is profitable. But it can also be a boomerang for you. Because this will make you err, even can be broken. So the peg is bigger than the pole.

Pay bigger bills. That’s just the principal debt, not yet added interest, so the amount of installments you have to pay can be higher. If the portion of debt installments is more than 30% of monthly income, then the possibility of default can be paid.


2. Late paying bills

2. Late paying bills

Swell credit card bills can also be caused by delays in paying debts. If the payment is past due, the credit card provider bank will charge late fees that will be included in your bill. That way, more and more bills. Late fees are usually calculated from the total monthly bills.


3. Too often withdraw cash

cash loan

On a credit card, there is usually a maximum cash withdrawal. Usually limited between 40-60% of the total credit card limit. The maximum amount of cash withdrawal depends on the type of credit card chosen.

The problem, withdrawing cash using a credit card is subject to administrative and interest costs. The interest charged for cash withdrawals is much higher than the interest for shopping transactions. The difference can reach 0.5% to 2%, depending on the policy of the credit card issuing bank.

While credit card cash withdrawal fees are usually charged at 4%, some even reach 50,000. The fee is charged directly at the time of withdrawal. So, the greater the value of cash withdrawals, the greater the bills due to costs and interest.


Swollen Bill Solutions, Use KTA Loans

Debt or loans are not a scourge

Resolving an enlarged credit card bill, in addition to using personal savings or selling valuable assets, you can look for alternative ways such as applying for Unsecured Loans (KTA).

KTA is a loan facility without the need to use collateral or collateral. KTA loan ceiling is usually around $ 3 million to $ 300 million. Some even offer $ 500 million.

Big is not it? Very enough to pay off your credit card bills. It’s just to keep in mind, that you use a way to dig a manhole cover in solving debt problems. So make sure that you can pay new loans through KTA.

What you need to know from KTA is:

1. Submission is relatively faster and easier. On online platforms, like Lite Lenders you can too. As long as the requirements are complete, KTA funds can be disbursed in just one hour

2. Applying for a KTA, there are those who do not impose the conditions for having a credit card. So anyone has the opportunity to access this loan

3. Borrowing KTA must be prepared with the consequences of relatively high interest. Some even charge up to 2.5% per month

4. There is a penalty fee if paying off the KTA before maturity.

Try to calculate, if you borrow KTA $ 50 million, a 3-year tenor (36 months), an interest rate of 2.5% per month. Therefore, the principal to be paid is $ 1.39 million per month. Multiplied by 2.5% a month, the installment is $ 1.42 million, which must be paid every month to the bank.


Choose the Best KTA with Light Interest


Because there are risks lurking about settling old debt with new debt, make sure you choose the right KTA. If you are still confused, you can compare several KTA products from several banks through the Lite Lenders website.

Choose the best KTA that offers low interest rates with a long tenor, so that installments become lighter. Submission can also be made directly through the same site. Good luck.

At present, borrowing money may no longer be a difficult case. If an only investment can be done online, so too in terms of borrowing money. You must have heard about online money loans, which are increasingly varied.

Call it to peer (P2P) lending, fintech lenders, or even online money lending features provided by banks.

However, the ease of borrowing money does not mean there is no risk. Do not be mistaken for borrowing money online then you can get out of hand when unable to pay. Borrowing money online also has the same risk or maybe more dangerous than if you borrowed money elsewhere.

Learning from the case with the victim you should be more aware when you are going to borrow money, especially if you are borrowing money online. Get to know the risks like the seven below then choose the best way to borrow money when in a desperate condition.

High Loan Interest

High Loan Interest

Ever heard borrowing money online has lower interest rates than at a bank?

The reality is not always like that. It is not uncommon for loans to be very high with the promise that money can be disbursed in a short time.

For self-interest loans, for example in P2P lending, it can range from 14% to 30%.

The rules regarding loan interest are indeed not strictly regulated.

The Financial Services Authority (FSA) does not regulate online loan interest limits. The interest rate arrangement is left to each online loan company.

Problems that often occur, many people are not aware of the amount of interest they have to pay.

Even though sometimes interest rates have been mentioned, because you are too panicked or other reasons, you forget this important information.

It could also be because the lure of money can be disbursed quickly, you are ignorant of the amount of interest.

The existence of unexpected costs

The existence of unexpected costs

Do not think after the loan was successfully obtained, you only need to pay money and interest.

There are other costs that need to be taken into account. You name it, administrative costs will be deducted from the value of the loan. The amount is around 3% to 5% of the nominal amount borrowed.

Then, there are also fees or penalties when late paying or paying the money borrowed.

Not to mention, if the arrears have to be billed by the company, you have to be willing to pay the billing fees anyway.

With so many unexpected costs to pay, not to mention interest and other risks, you should not easily decide to take out an online loan.

Think carefully about the risks that must be faced, lest you get stuck in debt online and can’t escape.

Non-transparent Debt Payment Report

Before taking out a loan, you must ensure the amount of interest and other fees that must be paid.

Do your own calculations and check carefully every payment report issued by an online loan company.

It is not impossible, in some cases, payment reports are not done transparently, especially for illegal loan companies.

Do not be lazy to ask questions and recalculate the total payments made to avoid greater financial losses.

Short Repayment Deadline


The repayment period for online loans is fairly short, which is a maximum of 12 months.

With high interest and a short repayment period, of course, it will not be easy for most people.

Therefore, before experiencing difficulties due to debt collection, it is better to take into account whether you are able to pay debts and interest in a short period of time.

Also, note that online loans are not used as capital or to finance any business that has medium and long term profit potential.

If so, you will have difficulty repaying and paying off the loan.

Personal Data Can Be Leaked

Similarly, when downloading digital banking applications or other applications, downloading an online loan application also requires the approval of access requests for personal data, such as a photo gallery, location, contact telephone number, or camera.

Without agreeing to a number of access, the application cannot be used or some features cannot be used optimally.

This might seem simple, but it will have a big impact when it comes to online money lending.

Because giving consent, that means online loan companies can access your personal data.

It is not impossible that this data will be used by the company if something happens, such as late payment.

The company may come to the residence address or contact important numbers in the telephone contact list to collect the debt.

Not only embarrassed but also the discomfort you will surely feel. Not to mention the burden of debt and interest that continues to grow. This is the worst bit of a shadow if you borrow money online and can’t pay it on time.