While it is true that it is easy to apply for microcredits and that they can be disbursed at a fast pace to help us resolve the liquidity problems, it is not that you can apply for these loans at random. If you do too many microloans, you may face some serious problems。

What happens if you borrow too much? There could be serious consequences

The first is the issue of interest payments. When you apply for microcredit, you pay a monthly interest. These interest rates are usually not low, and if you have multiple loans at the same time, the monthly interest expenditure is high. This will undoubtedly increase your debt burden, make your life more stressful and reduce the quality of life。

Second, the risk of overpayment would also increase. Loans must be repaid on time, and when you apply for too many loans and you do not have the capacity to repay them, you are vulnerable to delays. Once overdue, not only face high rates of interest penalty, but also the possibility that the loan platform will report your overdue cases to the letter-of-service system, further affecting your credit records。

Third, future applications for additional loans or credit cards could also be affected. Frequent loan records will be reflected in your letters of credit, even if you do not have a late record, and when you apply for some important loans, such as mortgages or car loans, there is a high risk that you will be rejected. The loan agency may find your financial situation unstable and refuse to lend you money。

And finally, imagine your risk resistance. Too many applications for microloans mean that a large part of your income will be used for repayment. This leads to the possibility that when an emergency requires money, you may not have sufficient funds. In this case, your risk resistance will be significantly reduced and life will undoubtedly become more unstable。

In order to avoid these possible problems, the application for a loan must be based on its actual needs and ability to repay. Reasonable borrowing to the extent that economic conditions permit and to avoid the risk of failure to pay。