Need to buy a new washing machine and don t want to dip into your salary or savings? Your bank can make you an offer that seems very tempting at first glance: micro-loans.

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But what is a micro-credit? With just a few clicks on the internet and verification of your identity, you can receive between €100 and €2500 in aid with repayment over a period starting at 3 months. You ll receive the money very quickly in your bank account, so you can make the most of it. But what s the catch with this money that s so easy to get back?

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Let s not forget that this action is still a credit which means you re going to have to pay it back and with interest that often has a particularly high rate (sometimes exceeding 20%). Fees are also ridiculously high in relation to the amount you ll be borrowing. What s more, there s no check on your ability to repay, which means that you re potentially going into debt or overdraft next month. The last thing you want is to accumulate them, as this won t help you if you want to improve your financial situation.

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In order to better protect consumers, the framework for mini-credits is currently being revised. The aim is to integrate them with consumer credits, which are themselves very well regulated. Mini-credits would thus be much better supervised for consumers, with a withdrawal period, pre-contractual information, a usury rate, etc.

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If you re in financial difficulty, avoid taking out a mini-credit to avoid a bank overdraft. Instead, make an appointment with your banker to discuss your loans: reducing the monthly payment, extending the repayment period. Don t forget to check with your banker whether your banking services are appropriate for your situation. You can also find out about grants and make sure you have access to all the assistance for which you are eligible.