Recently, the capital turnover is not enough, and I want to borrow money for repayment. What did you say?/Sorry?

If it is because the short-term capital turnover is not working, you can consider "returning" or borrowing money from other apps, but it cannot be used as a way of long-term consumption. And be sure to pay attention to the relevant details of the loan before borrowing, and be careful not to be cheated.

Common pitfalls of microfinance companies or apps, such as "daily interest", or packaging various interest costs into so-called "service fees", be sure to keep your eyes open before clicking "borrow" to avoid falling into the trap.

Basic operation logic of microfinance companies

Part of the money of small loan companies comes from shareholders' funds, and a large part comes from borrowing from other people or institutions. Capital requires a higher return, and the borrowed money must pay interest. In order to earn "interest difference" and cover the marketing expenses of APP promotion, small loan companies will definitely charge users much higher interest. Users should understand that once they borrow money from small loan companies, it will inevitably mean paying higher interest costs. In addition, microfinance also hides unpredictable default risks. Traditional financial institutions will provide loan services to users according to their income, existing credit status and property status. Although cumbersome and harsh, standardized contracts and strict supervision mean that users can predict the consequences of breach of contract (broken promises or mortgaged property being enforced). However, the qualifications of small loan companies are uneven, the management level is poor, and the understanding between users and small loan companies is very one-sided, which may easily lead to market disorder and endanger users' property safety and even personal safety.

Although the management of online loans has become stricter in recent years, "usury" or disguised usury is now relatively rare. It is best to go to the bank and go through formal procedures to get a loan. At the same time, loans should be based on their own repayment strength to ensure daily needs and monthly repayment. Don't form the habit of spending in advance, pay attention to avoid falling into the trap of consumerism, and don't "support loans with loans" and fall into the quagmire of lending. It is suggested to establish a correct concept of consumption, live within our means and consume rationally.