Overcome Bad Credit in Online Loans Without Panic
Online loans that are growing in Indonesia can be an alternative when you need urgent funds.
Easy and fast loan application requirements. Because all processes are done online and the process of disbursing funds which only takes a matter of hours makes many people look at this service.
However, some of the people who apply for loans through online loans do not understand the online loan mechanism.
Including many who do not understand that there are many illegal online loans circulating and operating without supervision and permission from the Financial Services Authority (OJK).
So that the loans given are very burdensome for customers. Because it has like-like rules that do not follow the provisions of the regulations.
In this condition, many customers are trapped in debt bonds and cause bad credit. Not infrequently when there are arrears in payments, there are unpleasant collection actions carried out by online loan application services, especially illegal ones.
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If this happens to you, there’s no need to panic. Because there are several ways you can do to overcome the bad credit.
Don’t Take Action Dig a Hole Cover the Hole
The first way to deal with bad credit is not to even take action to dig a hole to cover the hole by borrowing money from other online applications to pay off debts in previous online applications.
Many customers are found who have loans in more than 10 online loan applications.
The act of digging a hole to cover the hole is certainly not a solution. Because it will only add to the financial and psychological burden.
You don’t need to dig the hole to cover the hole. Because this loan problem should be discussed with the lender, or in this case an online loan application.
What You Need To Do Include:
1. Apply for Loan Restructuring
If you feel heavy because the debt burden of online loans is getting bigger, then you can contact the online loan application service where you take a loan to apply for loan restructuring.
Loan restructuring can be done when you are unable to pay off debt when it is due.
According to the Financial Services Authority (OJK), the public can request a rescheduling of debt payments so that they can freely pay their debts.
2. Request a Debt Burden Reduction
The debt burden that must be returned by customers usually comes from burdensome interest costs. For legal online loan applications, they agree to provide a maximum debt load of 0.8 percent per day and a maximum fine of fees that must be returned if they fail to pay twice the loan amount.
Meanwhile, many illegal online loan service applications charge interest beyond the agreement by setting interest rates of up to 1.5 percent per day.
If you are entangled in the amount of debt that must be paid because of the interest expense, try contacting the online application service where you apply for a loan to ask for an interest reduction.
The Financial Services Authority advises customers to do this so that there is a possibility that the customer can repay the debt according to his ability.
3. Find Additional Income
If the two methods above work, then there is room for you to pay off the debt.
In order for your ability to pay debts to increase, try to find other sources of income so that there are more funds to be able to pay off the debt burden.
By having additional income, in the future you will not need to borrow again through online loans after the debt is paid off.
Because there are other additional sources to generate rupiah coffers in order to meet the needs that may increase.
In addition to working side by side to earn additional income, the fastest way to get additional funds so you can pay off debt is to sell assets or valuables that you have.
4. Take advantage of soft interest loans
Even though you are forced to take other loans in order to pay off debts in online loans, you can take advantage of financing sources with soft interest to overcome this bad credit, which of course does not come from other online loans.
Soft interest loans can come from bank loans through Unsecured Loans (KTA), which even though the actual KTA interest is also high, but not as big as the interest on loans from online loans.
There are even some KTAs that offer interest below 1 percent per month for customers who have payroll at the bank.
Apart from banking, low-interest loans can also be obtained from savings and loan cooperatives to get funds that can be used to pay off debt on online loans.
Before taking a loan from a bank or cooperative, you need to compare first who offers the lowest interest.
After that, apply for a loan with a tenor of more than one year. So that the installment burden that must be paid every month is not too large so that the monthly financial cash flow is not disturbed.
In addition to low-interest loans, you can also look for interest-free financing sources whose funds can be used to pay off online loan debt.
Sources of interest-free loans can come from the office where you work which usually has interest-free loan facilities for its employees.
If possible, ask for a payback tenor of more than one year so that your finances are not burdened.
You can also apply for an interest-free loan to your parents or close relatives, but you must have a commitment to return the loan funds on time.
So as not to damage good family relations just because of debt.
5. Carefully Choose an Online Loan
Another way to deal with bad credit is to choose an online loan application service carefully.
The thing that needs to be the main concern is the legal aspect of the online loan service in question, whether it has been registered and supervised by the Financial Services Authority (OJK).
You need to understand the characteristics of legal and illegal online loan services. Legal online loan services have the following characteristics:
- Registered and supervised by the Financial Services Authority (OJK)
- Management identity data and office address are clear
- There is a strict selection in lending
- Transparency in conveying information on borrowing costs and penalties
- The amount of the loan fee starts from 0.05% to a maximum of 0.8% per day
- Maximum repayment including cancellation of 100 percent of the principal loan
- Maximum billing time 90 days
- Access customer mobile data only through camera, microphone, and location
- Have a consumer complaint service
- Entering customer data that does not pay off the loan after the 90 day deadline into the blacklist of the Fintech Lending Data Center (Pusdafil)
Meanwhile, illegal online loans also have characteristics that need to be understood, including:
- Not registered and do not have an official operational permit from the Financial Services Authority
- Office address and identity of management, owner, and investors are not clear
- It’s very easy to distribute loans
- There is no clear and transparent information regarding borrowing costs (interest) and fines
- There is no maximum limit on setting loan interest
- Does not provide a maximum limit on fines
- Doing billing without knowing the time
- Access all customer data on the cellphone
- Making threats in the form of violent terror, insults, defamation, immoral acts, and distributing personal photos or videos of customers
- Does not have a consumer complaint service
If you have already applied for a loan on an illegal online loan application and received unpleasant treatment at the time of collection, you can report it to the police.
To make a report to the police, all you need to do is attach an identity card such as an ID card or other identity when making a report.
After that, you tell the chronology of the incident from the unpleasant treatment you received from the online loan service.
You also need to strengthen it with existing evidence such as recordings of telephone conversations, screenshots or screenshots of conversations, emails or other evidence that shows threats, harassment, or terror by online loan applications.
Forms of threats or terror that are usually carried out by online loan applications, especially those that are illegal, include:
- Terrorize by telephone by contacting customers every day, regardless of time
- Debt collection is done by contacting family, relatives, friends to the employer’s workplace by illegally accessing contact data on the customer’s cellphone
- Create a Whatsapp group containing family, relatives, friends, to the customer’s work boss
- Furthermore, debt collection is carried out by distributing customer photos to pornographic photos if they are on the customer’s cellphone into the whatsapp group he created.
- Threatening customers by requiring customers to sell their kidneys to sexual harassment so that customers pay their debts
- Intimidating by sending short messages (SMS) to all contact numbers on the customer’s cellphone
- Intimidating with harsh words, insults and smells of sexual harassment
- There are still many other forms of threats from illegal online loan service debt collectors that must be watched out for to make customers tremble and pay off their debts.
Any form of intimidation must be reported to the police. Therefore, make sure to always use online loan services that are legal and registered with the OJK.
In addition, apply for loans wisely and only apply for loans for really urgent conditions to overcome bad credit.