The Disadvantages of Borrowing Money From Moneylenders

[Rubz]

Firstly, we all should know the meaning of money lenders. A money lender us a person whose business is lending money to others who pays interest. A money lender is also called a financier.
Here are some of the disadvantages of borrowing money from money lenders;

• very high interest on borrowed money
• repayment period are usually very short
• land grabbing: most times farmers are exploited by these money lenders
• borrowers are often harrased and threatened by money lenders to get back their money and gain interest.

 

[Augusta]

I always remind myself anytime I want to borrow. money that it is always good to manage the little you have in peace than trying to borrow money and begin to go through a lot of stress later. Some of the things we go through as a debtor isn't even worth the money.

As a borrower or a debtor you would be highly embarrassed. This is always done by the lenders sometimes out of frustrations. They want their money and it isn't forth coming so they will want to embarrass or harrass the debtor if that will help to get back their money.

You might become depressed: This is one Express way to get depressed. When you are disturbed, worried and you don't know what to do. You would become depressed and the creditors will still be on your neck.

As you stated if you have an asset it can be seized. So you can easily loss your property.

 

[King bell]

The Disadvantages of Borrowing Money From Moneylenders

Borrowing money can be one of the most difficult things people will do. You’re not just borrowing money, you’re taking on a burdensome responsibility. This is why it's so important to know that borrowing from a financial institution doesn't need to be risky simply because it's more expensive than personal loans.

The biggest disadvantage of borrowing money is you're taking on a responsibility that can affect your life in many negative ways. Personal loans are meant to avoid these problems, not cause them. However, for those who are struggling financially, there are disadvantages to borrowing money from a moneylender as well:

One of the most disturbing is that you have to pay some very high interest rates. As mentioned earlier, there is a lot more risk involved with borrowing from a loan shark than from most other financial institutions. If you borrow money from an individual it's unlikely that they will be able to lend very much because they would be losing out on the interest they could get by lending the money out elsewhere.

 

[Holicent]

Moneylenders are a great source of financial assistance. However, there are some things you should consider before you borrow money from them. Here are the disadvantages of borrowing:

You will be tempted to spend more than what you actually need. It is easy to spend more than what you have because most people live in an environment where they don’t have any limitations on spending. If you borrow money from a loan shark or a money lender, you will end up spending more than what your income can afford.

You may not pay back the loan on time. When it comes to loans, everyone wants to repay them as soon as possible but this is not always possible especially if you have other responsibilities such as bills that need to be paid and children who need school fees for next year.

You may end up paying high interest rates on your loan. The higher the interest rate, the more expensive it becomes for your finances especially if it is a long-term loan. For example, if someone charges 10% interest rate on his/her loan then they will earn 10% profit after one year while they only pay back their expenses.

 

[Frankdan]

Borrowed money from money lenders has no advantage, as far as I know. They interest is too high. And may be because of pressure involved, hardly could you make profit if you borrow money from money lenders to do a business.

The money lenders are know for harassment and threatening of borrower as result the borrower may be forced to do what didn't like to him or herself, commiting sucide.