Quote from: TimeTeller on July 19, 2022, 10:51:06 PM

Quote from: Fortify on July 19, 2022, 07:27:30 PM

Your friend only have themselves to blame in this scenario. Unfortunately lots of people, usually when people are quite young, don't seem to understand that it is not "free money" but has to be paid back and sometimes it takes a long time at great additional expense. I suspect at the very beginning, when the loan was first taken out, the repayment dates were laid out pretty clearly in the contract and these contracts sometimes aren't understood by the recipients as they should be. You don't need to avoid loan apps, you just need to be very clear on when the repayments will take place and ideally want to make sure you only take loans at below 5% or you'll be paying an obscene amount back. Paying them back as quick as possible is also a good idea, they can even be good for your credit score if you pay on time every time.

If you are taking a loan to any platform or any app, the responsibility of taking care of it is on you.
I don't think they will deduct without prior notice or arrangement with the debtor.
I do agree that the repayment dates are already laid out after acquiring the loan.
This is on your responsibility now how to make sure you will pay on time and not forget the dates.
Because there is advantage of taking the loan, specially if you are tight with the budget.
But once you get it, you should remind yourself about your due dates.

That’s a fair point—taking out a loan comes with the responsibility of repaying it on time. Loan apps don’t deduct money without prior notice, as repayment terms are clearly stated in the contract. However, many people take loans out of financial urgency and may overlook the long-term impact of high interest rates.

It’s always best to plan repayments carefully and avoid borrowing more than necessary. If managed well, loans can actually help build a credit score. For anyone interested in how loan apps work and what goes into developing them, this article provides useful insights:
https://www.cleveroad.com/blog/how-to-create-a-money-lending-app/

Financial literacy is key—understanding loan terms before borrowing can prevent a lot of stress down the line