Living in Tough Times

I have heard about loan companies extending salary loans to eligible applicants. As any other kind of loans, this is both good and bad. These days when there are talks about the big “R” (recession as they call it) and companies folding up, many employees can benefit from payday loans.

However, knowing that there is a fallback in the form of loans can also be a negative thing. Instead of taking measures to manage the finances better, there is that temptation to simply pick up a loan and wait for the next payday to cover for it.

There are companies out there, which limit the borrower to take up loans for emergency cases only. I think this is a good idea to inject some form of discipline to the borrower. I’m sure that many companies out there do not care about the purpose of the loan. What’s important to them is that they charge interest and there are collaterals they can get a hold from the borrower later on.

An extreme case of this is what they call loan sharks in Singapore. These are lenders who extend money usually to gamblers. Once the gambler is neck-deep in debt, these loan sharks will do anything even as far as vandalizing your own home just to threaten the borrower to pay. But then again, this is an extreme case.