Alexandoy
VIP Contributor
I have been studying this problem of borrowing money because many people I know would borrow money for the reason that they need cash. Okay, that is understandable. But what I cannot understand is their propensity to borrow without thinking of the means of payment. So many have fallen into that trap. Worse for some, they had a collateral that the lender would forfeit. The most common collateral for a personal loan now is the cellphone because it is very easy to sell although the valuation by the lender is one-sided. An iPhone costing $1,000 would have a valuation of $200 only. This issue of borrowing with difficulty in paying is being looked at by our government but I don't think they can do anything about it. There are so many personal lenders here, they are the people who lend money but they are not registered lenders. They are also the loan sharks of today who charge 20% monthly interest (as of the latest I heard that loan sharks have cut down on the interest rate from 20% to just 10% in regards to the pandemic).
I pity those borrowers who lost their collateral to the lenders. But it is their fault because they did not think of the result of their borrowing.
I pity those borrowers who lost their collateral to the lenders. But it is their fault because they did not think of the result of their borrowing.