Why is it difficult to recover your money from a Debtor?

[Kingsley]

When we look closely at loans we will realize that this are funds given to people for various purposes, which ranges from business purposes, educational purposes, and the likes, they are been accessed by people who in turn pays back with an additional sum known as interest on loan. This money should be remitted to the persons or organization that has rendered the loan facility.

But what we have all noticed is that when people come forward to access loan they make promises with everything within them to keep to their own end of the bargain but we end up realising that people most times tends not to keep to their promise and makes it very difficult for the owners of such loan givers to work double hard to retrieve their money.

What do you think about can be responsible for this?

 

[Alexandoy]

When the bank receives an application for a loan there are 2 things that they check - the capacity to pay and the willingness to pay. If the borrower has a stable job with a high salary then he passes the capacity. With the willingness to pay that is referred to the past debts like delayed payments in the credit card. For those who do not pay their debt it is more on the lack of willingness.

 

[Abigael]

I think this is because of lack of good planning on the side of the debtor. They take the loan without a good plan on how they will pay it back. That is why it is really best to really consider who is best to take the loan. Big institution usually look keenly at the credit history of the person before giving them a loan.