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

[pusaka]

Taking loans is not a bad idea, to some people it can serve as a leverage to improve their business but it becomes bad when someone has no means of paying back, and that’s when you see them going in circles of debt like you said. Well some loan apps are too complicated to deal with, like why charge huge interest rate with short payment period? That's so unfair and people should avoid those kind of platforms, some even include hidden charges, very unfair. Also, people should be wise when dealing with stuffs like that, one should take unnecessary loans to sponsor their lifestyles.

Taking out a loan makes sense if it's used to expand an existing business, but it's a bad idea if the loan is solely used for consumption. This is where the mistake lies. Many people fall into the trap of taking out loans to meet their daily needs. Logically, they're already short on living expenses, and now they have to repay the loan.

I personally don't recommend taking out a loan, although it's still worth considering if you need to expand your business. But before that, it's best to find other ways. In other words, even for running a business, a loan should be a last resort.

[Filicius]

Where I live, I don't think that loan apps are as common as in other countries. People simply go to their banks and ask for a loan, or they take one of these loans offered on TV who hardly ask for explanations, but whose conditions are much worse. But I am aware that in other places such loans are very popular, especially by those who can least afford it, even though they are a trap.

[Agbamoni]

Due to this easy access to money due to these loans apps, people have been locked up in a dept circle. This is because most of these loans apps are structured in a way that is disadvantageous to the borrower. This is so because these loan apps have a high interest rate which they add to these loans, plus a short period of payment. With this when ever someone fails to pay back their loan in the due date, extra charges applies which increases the the amount of money money becomes a financial burden on the long run.

Giving out loans is a business nowadays. It has been digitalized, different from 10 years back when you had to be present physically before requesting a loan. However, taking a loan is not mandatory. It is optional. If someone is not sure of paying back the loan on the agreed date and interest level, he shouldnt be taking a loan. Loan apps set structures that favor their business, not the borrower. It is left for the borrower to accept the terms and agreement while applying for a loan due to an emergency and out of desperation.

[lovesmayfamilis]

If you want to sleep soundly, then life without loans is the choice that smart people make. Any loan always implies that, firstly, a person will pay more, which is what lenders get rich on, and secondly, that a person can be manipulated. Now many people live in debt, but sometimes life shows us that there is nothing stable in our lives, and today's "good" can very easily be replaced by tomorrow's "bad." Therefore, competent investments and careful trust in all kinds of loans always imply a look into the future, rather than living for today alone.

[Promocodeudo]

Taking loans is not a bad idea, to some people it can serve as a leverage to improve their business but it becomes bad when someone has no means of paying back, and that’s when you see them going in circles of debt like you said. Well some loan apps are too complicated to deal with, like why charge huge interest rate with short payment period? That's so unfair and people should avoid those kind of platforms, some even include hidden charges, very unfair. Also, people should be wise when dealing with stuffs like that, one should take unnecessary loans to sponsor their lifestyles.

For those that have good intentions and good reason to get a loan for the purpose of what you said is never an issue but one thing every person that wants to access a loan must be prepared for or will I say should consider first is how to pay back the loan, and another thing is that no one should make loan a habit, I don't know if I will say naturally some persons are good at borrowing money which is why they overlook and careless about the interest rate of any loan App, many loan app in my country are very greedy, we can say it is their business and if anyone is not interested, it is not by force but their interest rate is just too worrisome, although I don't like the idea of the loan of a thing but I'm not against it because sometimes urgent needs calls for it.

[Zlantann]

A loan is generally a bad financial habit for both individuals and governments, and countries that depend on loans have ruined their economies due to the debt burdens and high-interest rates on loan repayment.

That's not true. Loans could be a viable tool to start or expand a business. Nations also use loans to finance projects that would be beneficial to citizens. Loans become a problem if the interest is too high or they are misused. Most Fortune 500 companies are indebted to many banks, and many wealthy nations owe international financial organizations.


https://www.worldfinance.com/banking/the-looming-global-debt-disaster

On an individual level, most of the loan apps are unlicensed and unregulated here in my country. They even go as far as charging interest on their interest for loan defaulters, meaning they have an unspecified interest right that is designed to suck the borrowers' finances, which is the reason why most of the loan borrowers are not able to make repayment. The government have banned most of those loan apps. Still, people keep running to them for reasons I can imagine; their bad interest rates should be a red flag for borrowers and should not allow the flexibility of taking a loan to be a bait to get trapped in their scams.

The first thing a borrower should do is to read and understand the terms of the loan. If you are not comfortable with the interest and repayment plans, don't take the loan. People should also ensure that they access loans from registered service providers. If the government licenses them, they would abide by the law.

My take is that loans should be used only for business so that the profit would be used for repayment.

[Majestic-milf]

Here I completely agree with you about this because I have personal experience with this. My elder brother started, but his end was terrible because he was just like addicted to something, always having a mobile in his hands and talking with someone about paying or taking.

This was not a good time for our family, but we did hard work and brought him out of this curse, but still these are the worst memories of my life because I really never want anyone to have a problem like this and face things like these few apps have the worst way of dealing, which increases problems for people to settle things, but they always increase the limit quickly. This is another big charm.

Having a debt hanging over your head is so exhausting as it can make you so stressed that all you can think about is how to meet up and if it's a situation where you have other obligations to meet, you'd find your salary can't cover for those expenses and the loan which could leave you more frustrated and looking for other avenues or apps to borrow from and sometimes it's as if they sense your helplessness, more exciting offers will pop for you to take but at the end of the day, its as if you're digging a hole for yourself.

[demonica]

It's the fact that there are a lot of online lending apps nowadays. And they made it easier to take loans. Less hassle, easy access, high credit limit, it's what makes people easily get influenced to take loans. Sometimes, just because it's easy to loan, they take loans even if they don't really need it. And since they already have the money from loan, and doesn't have anything important to spend it on, they often just use it with non essential things.

It seems fun in the beginning. You get to have easy access to loans and at the same time, you can pay it on an installment basis. But the more you enjoy it, you'll slowly get drow by a lot of loans from different lending apps. Once it becomes a cycle, it's hard break from it.

[Franctoshi]

This has made many young people to see loans apps as an easy way of getting money, not realizing that they are actually trapping their financial freedom and progress.

I want to summarize by saying that taking loans is not the remedy to our financial problems, but good financial habits such as saving and investing is the key to financial prosperity and borrow when it is only necessary or emergency situation.

Taking out loans isn't a bad thing when→

1. You have a means of paying back the loan.
2. Borrowing to boost a profitable business that you're running already.

There are situations in life where you can run out of funds, maybe due to an unexpected disaster, such as ill health, accident, sudden death of a love one, burnt of property, or a situation where you're being owed salary for some months.
One can seek the assistance of a loan to cover up expenses as long as you have a way of paying it back.

But this scenario you talked about, young people having their financial freedom get trapped because of unpaid loans they took, is a result of no proper plans for the repayment of their loan that put them into such a situation. In most cases, these young people aren't working class, and that's what leads them to such debts, because you wouldn't tell me that they didn't see the high-interest rate while they were taking the loan.

[hyudien]

"abuse" is the right word for those who are stuck in online loans, the common thing that happens why it can be misused is the fact that online loans really do not require serious guarantees, only with an identification card and you can get a loan, and in my opinion the biggest boost is the lack of income that is not comparable to excessive spending or lifestyle, so online loans are a solution for them, even though there is a big risk that must be borne, namely high interest. This is what happens in my country.

[JoyceBTC]

That is why it is important for people to always make sure they read through any loan platform, understand how it works and the interest involved. Most people actually realize high interest after borrowing because they did not really get to understand their interest rate very well before borrowing and I believe the duration for repayment is always selected by the user and not the loan app. The longer the duration to pay, the higher the interest.

Most of this loan apps make there offers very tempting to persuade users but it is encouraged not to take any loan, when you’re not sure of repayment and the inability to pay loan will leave one in financial distress, anxiety and also mental health stress.

[Ziskinberg]

Loans can only be good if the money is used for something productive. Unfortunately here in my country, most are taking loans for the sake of things that aren't really important. And, as you've observed, it's driven by easy access.

Here in my country, mobile banking can be accessed by anybody who has a phone. There are several mobile banking apps here, all of which offer users the opportunity to borrow money.

But not only this, lending businesses have also grown in numbers. So, even those who don't have phones could easily buy stuff they can't otherwise afford. Young students could easily buy a trending expensive pair of sneakers even if they don't have the money because of these lending companies.

While these loan apps have helped some individuals to survive from their current emergencies through instant release despite of high interests, however the  convenience it offers were mostly misinterpreted by young individuals and just take loans even without reliable sources of income, or worst is, they take loans without no plans to repay what they've loaned.

However, I'm not trying to look as a pro-loan apps, but my point is, at least these people who are eager to take loans should also be responsible enough and take accountability of their actions and decisions. Whatever their reason is, loans are needed to be paid, on or before due dates. If they can't be sure if they can pay their loans, then they should have avoided taking loans in the first place.

[mirakal]

I think whether its online or offline, no loan apps that are designed for the advantage of the borrowers. Its always the lending company owner that gets the most advantage. So regardless of the reason that loan apps have been helpful to those who are in immediate need of money, once they start to abuse these loan apps and take loans even without important matters to cater, their financial freedom will eventually get compromised.

Once there is loss of control, and no set plans and goals taken to every loan attempt, people will definitely ruin their finances in the next days, months or years. The action may be instant, but the effect of the result may last longer indefinitely.

[Btcdeybodi]

Sometimes, a need to take a loan may arise but people should learn not to form a habit of always borrowing money especially from unknown loan apps because most of these loan apps are very dubious. Some loan apps will ask you to grant them permission to have access to your contacts, gallery and even your location which can be very risky because criminals can even track your location and steal the money you borrowed by forcefully asking you to transfer the money to a criminal account number.

People should not also take loan if they do not have a source of making repayments when they loan is due. Apart from taking loans due to emergency needs, it is better to take loans for a business that can generate both the loan amount and the interest within the duration of the loan.

[Maslate]

Taking loans could offer some advantage on our part since we get to experience fast cash and solve our financial problem instantly, but it also comes with severe risks and these are what being ignored by those young people. Though they may be aware about it, but they refuse to internalize the possible effects after taking such action, as long as they have find instant solution to their financial emergency.

But in reality, this isn't a real solution, but a big trap for those who get used of taking loans. High interest means bigger amount of debt if left unpaid, not to mention the threats that these young people often receive from the agents that later on could cause them stress and depression. I'm actually against of these loan apps, because they aren't helping for real but are only putting their customers into bigger financial risk.

[Samlucky O]

Loan is good to help us sort out some important need when we are out of cash or fund in our bank account, but when taking this loan, it should be for a reasonable thing expecialy for saving of life or investment / business purpose. And this investment should be an  existing business that only need additional fund to help you add up your business, and make sure you don't take excessive loan that will be difficult to pay back when necessary. Like I said this loan are good, but when you use them unnecessarily, it becomes problematic and it may put you into financial mess.

[Cryptomultiplier]

The trap of loan apps is real and if isn't careful they may get so depressed after taking loans without finding it quite easy to pay back.
In my country where salary earners may be confident in taking loans because they feel that can pay back, the problem comes when you employer refuses to pay on time as they normally do. It now almost seems as if the loan apps tell your employer you took a loan and therefore the employer refuses to pay on time like they used to and this makes you who have taken out a loan to miss the payback time and have interest on your loans mounting.

The worse comes when the loan apps use their agents to harass, insult and disgrace you over the Internet because you faltered in repayment, not knowing that you actually want to payback, but somehow you haven't gotten your salary and you don't even know where to borrow from unless you borrow from another loan app to payback and the circle continues.

The financial implications of taking loans from loan apps far outweighs the immediate gain because you never know until you are stuck with repayment and increasing interest rates that you can barely afford.

[Findingnemo]

We are so quick to blame the apps who lend money to the people. Still, the real nlame should be on the people who tale such loans, if they are taking loans to buy an iphone then they don't really need to have one yet they decide to buy it, so these small banks utilizes the greed of the middle class people to make more money than the regulated debt market. One should have financial discipline before even having the dream of being rich; Rome was not built in a day.

[Marykeller]

I see loan apps like gambling sites. The moment you start, if you don't have control you'd keep going, just like an addict looking for a fix. Loan apps just like every business person seeking patronage, are always praying that their customers remain perpetually in need of money and when you settle your debt, they will bring up increased loan limits so you can keep being in their grip.
 We all need financial assistance somehow and I'm not going to deny that it does not help, the thing there is if you don't have control, you'd remain in debt for a long time.

What I found funny about this loan app is that they will call you with a nice tone that they have a loan offer for you, if you are the type who takes loans from them to pay off before or after the agreed date.

I have friends who like borrowing money from this loan app each time they go broke. They will tell you that the charges of the loan app are hell too much for them to pay. The moment they clear their debt, promising not to borrow money again from this loan app, the urge or need for borrowing money for something will come up.

I feel those taking loans quite often are addicted to these loan apps. Hard for them to let go, for them that doesn't have control/minimize how they spend money. This set of people is most times extravagant in their spending

[Synchronice]

As technology and access to the Internet has revolutionized the world. Allot of things has become easier to have access to when compared to some years back. One thing that is now common these days is easy access to loans via online loan apps which provides Monterey servers to people, infact having access to a loan now especially in my country is less than an hour.

Due to this easy access to money due to these loans apps, people have been locked up in a dept circle. This is because most of these loans apps are structured in a way that is disadvantageous to the borrower. This is so because these loan apps have a high interest rate which they add to these loans, plus a short period of payment. With this when ever someone fails to pay back their loan in the due date, extra charges applies which increases the the amount of money money becomes a financial burden on the long run.

With this if the borrower doesn't have money to pay, one is forced again to collect loan from another loan apps to offset the previous one, this circle repeats and become a financial prison that has lock up many. One thing that I have seen with these loans apps is their easy access to loan, unlike the conventional banking systems which requires a collateral when ever they are giving out loans. These loans apps doesn't require collateral what is needed is just the one number of two to three persons which they can call when the person defaults to pay.

This has made many young people to see loans apps as an easy way of getting money, not realizing that they are actually trapping their financial freedom and progress. I want to summarize by saying that taking loans is not the remedy to our financial problems, but good financial habits such as saving and investing is the key to financial prosperity and borrow when it is only necessary or emergency situation.

Listen, there are people who need loan and there are people who treat it as an easy way of getting money without realizing consequences. If I need a loan, I'll take it out of real necessity and for me, it's important this procedure to be as easy and fast as possible. If another adult person can't control his/her emotions and doesn't use his/her brain to realize the possible interest rate and consequences of the loan, the fact that it has to be paid, then I don't know what to say, it's their own fault and loan apps or platforms shouldn't be blamed for an easy access.
People need to learn that they should pay for the things that they do and do not blame others for their own failure! This is my answer to this post.