Why do people take out loans either payday/installment/personal? It would seem that this is an elementary question that does not require any detailed answers.
But in fact this is not the case: many men, many minds. In the modern world, in a practical sense, it indicates that you should never say never.
In fact, sometimes life can go on in such a way that you will change your position in relation to many things, and different types of loans are not something exceptional here.
How do people motivate life on credit?
Why take out a loan? There are several causal factors, according to which humanity actively lives according to the program of banks.
Here are the main considerations, based on them, a certain amount of a payday loan may be required:
- The money is out, and the paycheck is only in a week or more.
- Debts have accumulated that you will not be able to repay with your own efforts and savings.
- The desire to buy a good gift to your loved one.
- The desire to purchase a product that you could never afford to purchase for cash.
- Dealing with acute and urgent difficulties, for example, in terms of their own health, the use of paid medical services.
- The need to incur a large amount of spending on festive events – weddings, anniversaries, the birth of children.
- Purchase of your own home or car in case of lack of funds or their complete absence.
- Expansion of business activities.
- Payment for studies.
- Passing an effective training event.
- Sending a child to study or work abroad.
- Buy high-quality and expensive things that you could not afford without a payday/installment/personal loan.
- Provide yourself with home repairs or improve your own home in another way.
- The occurrence of force majeure.
Why do people need loans?
This is a kind of financial instrument that contributes to achieving the set goal. Lately people did not take on the burden of debt obligations and could cope on their own.
Offers to borrow money today can be found literally at every step, and the issuance of money occurs promptly.
It is clear that such an availability of funds, which is inaccessible to citizens from their own savings, turns their heads and makes them think that new things and a beautiful life are really needed.
Unfortunately, most borrowers, having collected loans, face a fiasco and subsequently vow not to borrow money at all. Others, in turn, only get used to the new bondage, taking on a loan everything that is needed and what is not required.
Why do some people take out a lot of loans?
If you can’t afford to live a life of luxury, loans create opportunities for having all this beauty without much stress and difficulties.
That’s the way the human psyche works, provoked by the ego: you have to be no worse than a neighbor, colleague, distant relative or that person in the bus. It turns out in the end that a loan is not a need at all, but one of the ways to improve your own self–esteem.
The classic situation today is aggravated further by the fact that people have the opportunity to take out a loan not in a bank with a long wait, but right at the point of sale, in 5 minutes.
The statistical trend is that the total number of loans per capita is constantly increasing. One individual or even a legal entity can account for about 4-7 loans – from a credit card to a mortgage.
In addition to the really necessary goods, people also buy luxury stuff that are not so necessary, but they allow them to assuage the ego.
It turns out that the only criterion and factor forcing people to take out a lot of loans is their availability.
If there is an acute shortage of money should I issue a payday loan?
Such is the mentality of our man, accustomed to exist from payday to payday. It is necessary to distribute all expenses throughout the month. But sometimes there are circumstances in which there are not enough cash before wages, and the idea arises of getting a loan for just a few days.
Traditionally, people address payday lending services and are forced to overpay greatly. Of course, due to the small amounts, in fact, overpayments are practically not high. In these cases, it is most expedient to apply for a loan that implies a grace period.
It will help you to get extra cash before the salary and return it without interest overpayments. But you should not get carried away with such offers, because they are profitable for some time.
Portrait data of an ordinary borrower
Periodically, financial institutions conduct research and study of their borrowers in order to determine who exactly needs services and which categories are considered the most risky.
On the basis of such data, it is possible to determine the average and reliable client:
- Age limits. According to statistics –average 25-44, ideally – 39-45 years.
- The level of education. The average segment is dominated by clients with secondary education, ideally it should be higher.
- Family status. Ideally, banks see families in which children have already grown up.
- A level indicator of income.
- Property ownership. Ideally, the client should have his own property and car.