Step by step guide to break free from loan apps

Expert Counsel

Loan apps may appear to be a convenient solution for quick cash, but they often come with significant risks. Here are ten crucial tips to keep in mind when dealing with online loan apps:

1. Only Download Loan Apps from Official Sources

Always download loan apps from official sources like the Google Play Store. Downloading from unofficial websites increases the risk of cyberbullying and misuse of your personal information, such as unauthorized contact with people in your address book.

2. Be Prepared for Harassment if You're Late on Payments

Even a single day's delay in payment can result in a barrage of aggressive and unpleasant messages, particularly on WhatsApp. If the harassment becomes unbearable, don't hesitate to block the sender to maintain your peace of mind.

3. Extremely Short Repayment Periods

Many loan apps offer repayment periods between 6 and 14 days, making it challenging for borrowers to meet deadlines. These short repayment windows can trap people in a cycle of debt.

4. High Overdue Interest Rates

Missing a payment can result in daily overdue interest rates ranging from 5% to 7%. Such high rates can quickly spiral you further into debt.

5. Reputation Damage is Their Leverage

Loan apps may publicly shame you or tarnish your reputation by sending messages to your contacts. Once this damage is done, some borrowers decide not to repay the loan, as the harm has already been inflicted. You can generate a disclaimer to counter any false claims made by the app.

6. Don’t Borrow from Other Loan Apps to Repay Your Debts

Taking out new loans from other apps to settle existing debts will only worsen your financial situation, leading to a deeper cycle of borrowing and repaying.

7. Use Truecaller to Block Harassing Calls

Truecaller is an effective tool for screening and blocking calls from loan apps, helping you avoid unnecessary stress and harassment from lenders.

Reviews