The Trap of taking loans, from loan apps the mistake most young people do.

[abhiseshakana]

Of course, taking loans is okay and it's a personal choice, there are people who decides that no matter how bad the situation may be, that they can't go for loan. Of course I have a siblings who is like that, he would rather seek for help or support from any of his family members than to take out loan, he used to tell me that the reason why he has refused not to take loans is because when it gets to the due date it looks as if he is just giving out money for free of which I also heard someone saying similar thing.

Personally, I don't see anything wrong in taking loan rather my only advice is that after taking loan we need to ensure that we pay back on time to avoid facing unnecessary penalties.

Your sibling doesn't sound like someone who very responsible or maybe they're just selfish to rely on family members rather than taking out a loan. That is someone elses money that they are spending and their convenience, preying on the good will of family instead of borrowing money the way most other people do it is not in any way honorable. If he is not clever enough to save money himself, negating the need for any loans, then he shouldn't exactly be judging the banks for charging an interest rate. Sometimes family members won't say no, but will hold resentment against you for taking their money away. I remember Warren Buffett talking about borrowing money and he said the only good loan was a mortgage, certainly not a car loan because they tend to depreciate massively and anything else is most likely just a luxury that you could save to afford first.

I think loan that relatively healty are loan for productive asset which has the potential to generate cash flow greater than its cost of debt such as debt for buy boarding house or purchasing business equipment that increases production capacity. Taking mortgage for a residential home, It makes sense because a home provides the benefit of shelter and builds equity. i ever taking loan for my business cashflow, at that time i holding large soon to be collected receivable but i need working capital. Shortterm loans can make sense if the source of repayment is clear.

Which is currently causing unease and concern, many people taking loan to look rich for social justification. I think we can take loan if those helps me become more productive.

[Soldroplet]

From what you have described, from every beat it does not look like you have 20 loan apps all in at once it's a normal start process with no rush, now it starts as please i need just 20$ for this week; I would pay back on Mondays once the week starts…And in a little while, before you know it, you’re not borrowing for needs anymore. You’re borrowing to stay alive and the debtor would start to dodge harassment…..Still talking about it, these loans from loan apps are crazy most of the time...their interest is not helping…

The worst situation you can ever be in is to borrow for survival, this means that you don't even have a plan to pay back because this is different from when you borrow money to invest in a business or do something that can give you an Income, borrowing money to feed is crazy but I don't really blame a lot of people because it seems like they don't really have much of a choice.

The harassments Is one thing that makes life a living hell especially when they start sending broadcast messages to your contact list, it is actually an invasion of privacy and they can be sued for that.

If someone wants to take a loan but does not repay the person who gave the loan, then the matter is different, it is his own fault. When a person borrows from someone for business, there is a possibility that he will repay the money. It is not a good sign for mothers to ever take a loan just to eat, because if we have a mirror, how will we repay that money? Then the person who gave you the loan will scold you a lot and threaten you. And some unscrupulous lending institutions like loan apps take advantage of this helplessness of people.
If such an incident happens, it is definitely better to seek legal recourse. Currently, there are cyber units who are very aware of this loan app. If those who are victims can inform the concerned authorities, then there is a possibility of getting a remedy.

[Barcode_]

I once watched a video online on YouTube that showed about how young people are taking loans on some online apps which allows them to take out a loan easily unlike banks which would require their customers to submit a lot of financial documents in order to prove that they are able to pay back their loans. But most of these online apps which provides loans to their customers are usually not regulated in their debtors countries and sometimes they would send people to harass their debtors at their home to force their debtors to repay their loan monthly, and usually the debtors would only be able to repay the minimum interest monthly and this would spiral into an endless debt trap for these young people as they would find it difficult to clear off their debts once the loan interest stacks up, I believe it is always better to avoid taking a loan in the first place if the person does not have the financial ability to repay the debt.

[Solodoski]

I think generally loan is a trap to keep you in debt, bit loan app are even worse because they give you a loan with a very high interest rate and a short time to repay it. When you can't pay at the expected time, they keep adding interest everyday and before you know it, you are in a lot of debt. I also think the loan app are good innovation to help you get quick loans just in case of an emergency,  but I will advice that before you take a loan from them, you should have a way or plan on how to pay back immediately,  so you don't get yourself entangled in a lot of debt.