It is not often that positive news comes about SMS loans or other micro loans in the media. But now some good statistics have been presented. It is true that the number of unpaid SMS loans that caused the lenders to apply for payment orders at Kronofogden has decreased sharply.
During the first six months of this year, 15,939 applications were submitted to the Kronofogden, which involved various forms of micro-loans. Now this is not a low figure, but if you compare with the 23,465 applications that were submitted during the same time last year, it will be a decrease of 32%.
Now we can only hope that this trend break will continue in the future as well. It is only to be hoped that the number of applications will also continue to decrease in the near future.
Why have notifications declined?
It is always important to consider the reasons why different things happen. And if you look around the media a bit you can see what they think is behind it, then of course you can think a little yourself too.
The business cycle – The fact that the economic crisis seems to be in decline has meant that more people receive more money. This is something that should clearly mean that fewer cannot pay.
Review of the loan intermediaries – The Consumer Agency has, as we have written about several times, conducted a large review of the loan intermediaries. Something that has probably meant benefits for borrowers, which in the end means fewer unpaid loans.
Dick and Berrba Diver – Of course, I who run a site like this one must hope that we and others who run similar sites have had a positive impact. This is partly by informing about the risks but also by price comparisons that can be found. There have been many lenders in the past who have taken out closer usury rates for the loans. These should get harder when there are many places that compare prices.
In the past, there were also quite a few sites that talked only about the positive aspects of micro-loans. These have now largely disappeared and been replaced with sites that take up both the positive and the negative.
The Consumer Agency – The Swedish Consumer Agency has been working to get information that shows on the bad sides of micro-loans. This is something that should clearly affect. Janne Åkerlund, informant at Kronofogden says. “It is a result of our work to constantly inform about the negative consequences of unpaid loans. It is expensive to buy SEK 3,000 for 3,600.”
Who is not paying?
It is still the case that the younger borrowers are getting better and better at repaying as planned. The proportion of people between the ages of 18 and 25 who did not pay has decreased from 40% to 20%, which is a large reduction.
If you look at the statistics, it seems the men have improved the most since nowadays 51% of the unpaid loans are taken by men. Last year it was 53%.
The proportion of micro loans
In the media, it can often sound like the micro-loans account for the vast majority of payment orders issued by Kronofogden. This is certainly not true as there were approximately 600,000 applications in the first half of this year. Therefore, the 15,939 applications for micro loans do not constitute a major part of the total.