| 17th March - You thought credit
cards were a problem in the U.S. The Swedes have a problem that’s even worse.
That’s because they can send a text message via their mobile phones and instantly
receive a loan, which is automatically deposited into their account. It seems
the simplicity of the technology is causing some Swedes to get into some serious
debt problems, according to a report by AFP. These are 30-day loans, whichif
not paid backresult in high interest rates and late charges for customers.
The average loan amount is around US$500. In response to the concern caused by
these quick loans, Swedish officials banned interest payments that are higher
than the initial loan. Quick money can tend to cause problems. Thats
the same reason credit cards get people into trouble. 30-day loans can be worse,
since they usually come with extremely high interest rates and fees that put those
charged by credit card companies to shame. The combination of a quick loan and
high interest rates and fees is not a good thing. Back
to News Reports |