If you need cash right away or if you have a high card price, you will look for another loan. You can avoid arrears in a hurry by blocking the loan, but if it goes wrong, you can incur more debt and have a hard time repaying it. Today, we will have a time to summarize how to prevent loan repayments such as revolving, card loan, and cash service.
What is preventing a loan from being returned?
It means blocking the existing expected loans with other loans. It means trying to prevent arrears by using card loan or cash service that you already have. In the past, we used to use a card to block it, so it was also called a card spinning block.
Reason for preventing the loan from being returned
Prevention of delinquency
The main reason for the loan reversal is to prevent delays. In Korea, if the standard month is not exceeded yet, it is short-term overdue, and if it is over 3 months, it is a long-term overdue. Both overdue payments will remain with the Korea Credit Information Service, and long-term overdue payments will be kept for up to three years.
There are some cases where the loan is prevented from being returned for a grace period. It is also used when cash flow is blocked, or if the business operator or self-employed do not yet receive the unpaid bills. Or they use it to accelerate consumption because it's going to generate money.
Types of loan reversals
One of the most widely used methods is cash advance. It is the most commonly used means of preventing the loan from being returned because it is available 24 hours straight without restrictions on the number of times. However, frequent cash advances are a factor in the decline in credit ratings, so you should refer to how 내구제 to prevent the loan from being turned around.
It means transferring a certain amount from this month's card payment to the next day's card payment. To use revolving, you need to make a revolving arrangement with the credit card company. Revolving, which is said to be part of the monthly payment, requires a fee for the transferred amount if the percentage set for this month's payment is carried forward to next month. Revolving fees range from a minimum of 5% to a maximum of 23.9%, with an average annual interest rate of 15%. Considering that Korea's legal maximum annual interest rate is 24%, it belongs to a very high interest rate.
a loan in exchange
Loan-to-value means converting high-interest loans with high interest rates into low-interest loans with low-interest loans. It's also called transfer theory. Currently, the government is supporting a loan for Hetalon 17.
Card loan, now called long-term credit card loan, can be extended to a higher limit than cash advance. When one company's credit card loan is blocked, they find another card company. .
a negative account
If you open a negative account, you can use as much money as you want within the limit. Also, you will only pay interest on the amount you used and the date you used. If you make a loan with a short period of time, it's better to use a negative account rather than a credit card.
a small loan
Small loans of less than 3 million won are legally exempt from the debt situation and income review. Therefore, they often take out loans of 1 million won immediately or small loans such as 300,000 won and 500,000 won to prevent the loan from being returned.
If it's getting harder to get a loan from the 3rd financial sector, you're thinking of a private loan. I lend my personal money or look for monthly loans or daily loans. However, these loans are very high in interest rates, which can make it very difficult to solve your debt, so you must find out how to prevent them from being returned.
If you become a credit delinquent, you can't even borrow it, and you get a lot of disadvantages. That's why I look for a phone-tech or durable loan. Such illegal loans may be fraudulent or disorderly, so you don't need to take them.
Problems preventing loan from being returned
a downgrade in credit rating
Once there's a delay, the credit rating goes down. That's why I'm trying to stop the immediate delay with several loans. The problem here is that even if the number of loans is high, if you continue to borrow in this way, your credit rating will plummet.
an unaffordable debt
There are multiple loans due to the loan reversal, so it's a multi-debt. Such a large increase in debt can make it difficult to manage, increase not only the principal but also the interest too much to handle, making it difficult to resolve the debt, which in turn increases the risk of becoming a credit delinquent.
Workaround for preventing a loan from being returned
Correct lending order
First of all, you need to know the correct order when you get the loan. If you get credit card loans or cash advances from 2 financial institutions first, your credit rating will drop a lot, making it difficult to get a loan from 1 financial institution. So when you're trying to get a loan, you need to compare and analyze the interest rates on different loans.
Using the Credit Counseling and Recovery Committee System
If you think it's going to be overdue or in a situation where it's overdue, you should find out the Credit Counseling and Recovery Service system as soon as possible. It's because it's very difficult to get out once you start rolling out the loan. The Credit Counseling and Recovery Services debt workout system should be assisted by pre-workout and personal workout programs that relieve interest.
Today, we've talked about how to fix the loan reversal. You have to take care of your usual spending thoroughly while fixing bad spending habits that you incur while getting a small amount of loans or carrying them over so that you won't fall into a debt swamp.