Loans And Debts

Loans when used in a proper manner can help you to fulfill your dreams — setting up business, buy your home, buy your needs and wants in your life. Excess loans in your life incur debts when you are not able to repay the banks in the later part of your life when there is business failure or failure in investments etc.

In my previous post, I mention about credit cards. Credit cards are not evil. Money are not evil too. Money is only a tool. There is nothing good or evil about it. It depends on how one uses it. The same money which could help bring relief to the suffering millions, can be used to build up armaments too.

Money is the instrument of exchange helping in buying and selling and helps also in fixing the value of things and commodities. Money gives purchasing power and it is helpful as a standard of price. Money also helps people to have power, not only in buying things but also in influencing many human activities.

Money allow men to do what they want, fulfilled their dreams. Though money play an important role, money mars men’s and women’s morals too. It has got the evil influence in corrupting people. There are people who could do anything for the sake of money. Moneyed people achieve many things which the poor cannot do.

As money is needed to ‘achieve’ so many things, more people are trying ways to get fast money, be it earning or from loans. Whether it is secured loans or unsecured loan, some loans are necessary while some other loans can be avoidable. For example, some people take loans to invest in shares. They wanted to win fast money from stocks and shares, but they do not have so much money. So they seek the bank and apply for a loan.

Is it easy to get a loan? Loans are easy to get as long as you are working — when you can prove that you have monthly income from your company. For people who are self-employed, it is not so easy to take a loan, unless you have regular income revenues for the past years. For people who have past records of loans and credit cards, the banks do not care so much whether you are still working a not. They still continue to give you loans when you ask for it. I feel that that is something which is no good. This might give the person more harm than good.

Banks or bad credit loan company also want to make money. By lending money to people, they can use their money to make money — by collecting interest. Most people who borrowed money have several loans from different banks. Every month, they need to issue ‘minimum payments’, that is paying their interest rates to these different banks where they borrowed money from. This is stressful, as what I have seen from those people around me. Debt consolidation loan allows people to consolidate debt, which means to reduce their monthly payments into one easy payment.

When somebody has taken up too much loans, they incur a lot of debts. This means that the person may even need to pay more loans(interest) than what he is earning every month from his salary. This is obviously dangerous or risky. In the event that this person faces retrenchment or a lost of work, he is not able to pay back any money to the bank and that is why some people have to declare bankrupt!