A micro loan maybe all you need to get out of debt, a bad credit situation or finance crisis. Micro loans have provided finance to millions of people who perhaps have had no access to credit from the banking sector because of their lack of security or creditworthiness.
Getting a micro loan from a micro-lender should only be followed once a person knows the importance of planning debt wisely and how to draw up a budget. Unfortunately millions of borrowers make even more debt in the form of micro loans. Some people who are already in a debt crisis will go to different micro-lenders and obtain several loans which they know they cannot repay. They do not plan, they just live from day to day.
It is especially the poorer people who turn to micro-loans, mostly to get out of their financial problems and definitely not for the purposes of long-term investing. Without the correct guidance and education, these people will slide even further into debt until they are trapped and not able to escape the debt jail. If they cannot repay debts, they may end up in jail (literally) as well.
Some pensioners are currently paying so much interest on micro-loans that they will never be able to get out of debt. They are stuck in the debt jail. Do not make the same mistake, plan your debt and micro-loan and get or stay out of debt and continuous financial worries, do not fall into the interest trap just because you did not plan properly. Micro-lenders charge very high interest rates because they lend money without demanding any security which means their risks are very high. Tread carefully, follow the advice above and you should have no problems with getting a micro loan and hopefully it is all you need to get off your debt roller coaster!