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

[|MINER|]

Now another pure version of loan has come which is EMI,, and if we see that now the tendency of show off has increased a lot among most young people and due to this it is seen that their EMI never ends. They have to pay EMI every month and every year.

Because to show off on social media they make their expenses more than their income and in this case they take loan. And this thing basically goes around like a circle like now someone bought iphone 17 pro max through EMI and as the year goes by again iphone 18 pro max was launched and again they bought that last one again through EMI. And such thing is basically in other things also and that is why it is seen that nowadays young people cannot avoid loan trap.

[uneng]

People who fall for such traps are the ones looking for easy money. They also failed to realize there isn't free lunch in this world. Nobody gives money to another person for no reason at all, including charity. If there is easy and instant money being offered, it means there are harsh terms in counterpart...

If young people did their own research before accepting any offers available on the internet, they wouldn't fall for such traps. Now I'm not sure if this situation is a consequence of financial education not being available for young generation, or if it's the young generation who refused to educate themselves financially.

[BRINIRHA]

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.

Thinking when we are young always leads to emotions and fulfillment of desires that we have and consciously or not we who are in older age have felt something like this.

Fulfillment of the desire to feel profit for a moment and do not want to be complicated the most important thing is to get money to make this used as a means of business because not a few online loans that even provide interest that is much larger than it should be and consciously or not we have to bear it all.

For now, it's actually not only online loans that are annoying but also paylater that feels more burdensome to me because we will actually be lulled into getting something easily but don't realize that we have to spend more money in the future and it could be that when spending is not controlled it will make us slowly destroyed financially.
Many people say that loans are not a problem when we can bear it but if this loan is not made into something productive and only fulfills momentary ambitions because of prestige or just because we want to get something quickly it is not a wise decision.

[abaeze]

If the purpose and conditions of the loan are right, then the loan is not bad, the real issue is whether the purpose of those who give loans is for the welfare of the people, or just to increase their wealth by making profit through interest. Reasonable interest loans for business expansion, long-term mortgages for buying a house, education loans, if it creates the possibility of increasing income in the future, then this loan is okay and everyone should repay the loans responsibly without defaulting on this loan. But nowadays many people, especially young people, take temporary entertainment or irresponsible loans which later creates more debt pressure for the loan council mentally and they enter a circle from which they have to endure a lot of time, money and mental pain to get out.

[Royal Cap]

But I will say that taking loans is always bad. The problem starts when people start taking loans one after another without calculating their income, in the greed of getting easy money. Planned loans for business or emergency medical needs can sometimes be a logical decision. But many people in our country take loan just to maintain a lifestyle they can't really afford. Actually the real risk is taking new loans to repay old loans. Then people do not realize that they are gradually getting stuck in a cycle of debt. So it is not the loan app, but the habit of using loans irresponsibly that is more dangerous.

[eaLiTy]

Instant loan apps are a menace to society. The initial phase is a data trap; as soon as you install the app, it scrapes and uploads all your contact details, gallery data, and location to its servers. The second phase involves their collection tactics, which rely heavily on blackmail. Since almost all of these micro-loan apps are illegal and this is a major issue in India, I am certain the exact same thing is happening around the world as well.

There are seven suicide cases reported in my state of Kerala alone. The latest one involves a BDS student who died by suicide recently in April. The government has banned several of these micro-loan apps, and yet they keep popping up, and the victims are mostly students and housewives..

Source: Nithin Raj suicide

Some of them are not totally bad. They could be helpful when you don't have money to carry out some important or profitable business. I once landed a job that needed me to upgrade my device. These loan apps were handy, and the profit I made was enough to pay off the loan. In my country, the government has come up with a regulatory framework to protect users from exploitation. It is recommended to use only registered service providers.

In extreme cases, suicide is sometimes caused when these loan apps are abused. It is common to see young people taking loans for gambling purposes or to finance something irrelevant. You would be surprised that some without any source of income are taking loans. And they will end up taking another one from another company to pay for the former.

There are legitimate micro loan apps that provide loans by assessing credit risk, charging legally defined interest rates, and operating under regulatory oversight. Then, there are apps that provide loans to extort and blackmail victims, which are run illegally.

The 22 year old BDS student from Kerala who died in April took a tiny micro loan explicitly because his mother desperately needed medical treatment. He was not trying to fund a luxury lifestyle; he was trying to save his mother. The operators went after his college faculty, morphed his photos, and harassed his social circle until the shame became completely overwhelming and took his life.

It is great that a legal app helped you upgrade your device for work. However, do not confuse legitimate micro credit apps with illegal data harvesting blackmail apps.

~
Those random apps can't be eradicated because they just launch new app under a different name once the existing ones are removed from playstore. And people are so desperate for money they don't even read what access the apps asks while installing, and don't care what the loan agreement is, they just want cash that moment even if it is like 30 or 40% per annum with lot of hidden fees.

It is a sad reality, and these illegal ones usually target users who do not have a good credit score to source a loan from legal platforms.

I use credcash while is quite transparenet, I do that to build my cibil score and never faced any issues with them also the credit line keep getting regular updates after successfully paying the previous withdrawals.

I have not used them. As long as you are finding them helpful and have complete control over your repayment, good for you.

[DabsPoorVersion]

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.

There's no denying that some loan apps are indeed offering a loan with a ridiculious interest rate, aside from it's an easy access the approval rate is also high. Which is highly becomes the reason why a lot of borrowers are being trapped in that debt cycle. However, I don't think that taking loans is generally not a solution to financial problems. The real problem I can see is how these people use their loan and whether they are capable enough to repay it. If they are borrowing money for unnecessary purchases, this is where the problem begins. If only those people know how to properly take advantage of taking loans. Like it can be used to start even a small business, many other businessman are doing this to grow their capital.

[asriloni]

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.

The bold statement is not even relate to the reality. It's so easy to say people have been doing wrong habit while the fact any country has different growth rate in term wage vs inflation. Some big nation such as US can still have its wage growth straight with the inflation, even in some period US wage growth more than its inflation.

However, it's totally opposite when it comes to the 3rd nations who have their wages being swallowed by inflation. So it's hard for them to save money because their wage is not even enough to fulfill their daily needs.

So they have to take instant loan from loan apps because their wage is not enough to cover all they need. I remind you the wage growth and inflation also matter in this case, but you forget it, then choost to generalize if all people took online loans are wrongdoing their habit.

[kasablings]

Taking money from loan apps to my own individual opinion,is not a trap it only becomes a trap to the individual that takes the money for no important use.before taking such loans you are suppose to have an idea on what you want to invest the money on,and it has to be a lucrative daily business that can produce money effectively for you to meet up the payment schedule.and to the young ones if I may advice you should have a running business no matter how small the business is so when you get the loan it will become easy to pay up,if not it becomes a trap for you when there is no business running you have to struggle paying it and it becomes a debt.

[sunsilk]

But I will say that taking loans is always bad. The problem starts when people start taking loans one after another without calculating their income, in the greed of getting easy money. Planned loans for business or emergency medical needs can sometimes be a logical decision.

I agree in most that you have said about getting loans sequentially but I have to disagree about what you've said that taking loans is always bad.

IMO, it's only bad when you don't have the means to pay it and you're taking loan just to buy something that you don't truly need.

If it's a good debt, then it's not that bad at all. It means that the purpose is for something good and productivity and as for that purpose of unforeseen turn of event like medical emergencies. But I think that we should prepare it as well to have emergency funds instead of taking a loan.

But many people in our country take loan just to maintain a lifestyle they can't really afford.

This doesn't only happen in your country.

It happens everywhere, in every country that there are people who likes to look glamorous on social media but in real life situation they are broke.

[jcojci]

Online loan apps shown the ads in many apps and makes people curious how it works. People seems don't learns the system and just apply because they need fast money. They don't think that the loan interest will increase following the time and if they can't pay the interest, that will be big.

Young people apply the online loan app buying the goods they want such as iPhone, laptop, motorcycle or others and only for show off. They don't preparing the money to pay the loan carefully and thinks that they can pay it.  Online loan apps will be more dangerous so you need to think much before you apply and it is better to free from debts.

[Fortify]

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.

This is a challenge that many young adults will face, because financial education is quite lacking in most schools but even with proper education we get bombarded a thousand times a day with adverts that are trying to make us spend money. Buy this product to make you slim, get these sunglasses to make you look cooler, sign up to this 60 month contract to get a sports car that will make you elite.. all these kind of ideas are pushed at us relentlessly yet when we just leave education and are thrown to the wolves. Most people end up learning the hard way by taking out a loan or credit card, spending the money and then realizing it has to be paid back which takes a very long time. Hopefully that lesson is enough to wise each person up and stops them jumping on it too quickly again in future.

[stadus]

People often complain about these loan apps because of their excessive interest rates and non-stop threats when due dates are not paid, but when they experience financial problem again, still they go back to these loan apps for fast release of cash. So with this, we can't expect from them to stop their operation because the demand is still high and they are still making obvious profitable income.

The only solution to this is, financial planning and budgeting. If you don't want to take loan from these digital loan sharks, then stick with your budget, delay your wants but prioritize your needs. Young people should also be aware about this so that they won't be making wrong decision and rely their financial problem solution from these loan apps.

[Marvelockg]

But I will say that taking loans is always bad. The problem starts when people start taking loans one after another without calculating their income, in the greed of getting easy money.

There are times when taking of loans can be seen to be a neccesity and at such time, regardless the eventual interest that's added to the loan, because you've been able to solve your problem through the loan you've taken, the eventual additional interest doesn't count any longer. It gets bad when you're taking a loan for the bad reason like using it for regular expenses that can't generate additional funds or help solve further real life issues.

The issue is far from the loan app trying to trap anyone from continuously taking of loans. It's you that's taking the loan that's the problem and not just the loan app.

[SUPERSAIAN]

Well despite the loan app is now seen as a treath to humanity, because of the high interest rate and so on, don't also forget that this loan app has helped to reduce the rate of stress looking for loan when there is an emergency. In my own personal point of view, there is nothing wrong with this loan company that offers help, the thing is that you are paying for the conviniecy. And another thing is that the loan is not by force, its a person decision wether to accept or not.

While taking out a loan in an emergency can truly be a lifesaver, turning it into a habit can lead to negative consequences. Given the current high interest rates, such debt could weigh you down for a lifetime, draining all your vitality as you struggle to stay afloat. That said, as you mentioned, there are times when you genuinely need the funds, and securing a loan at that moment can be beneficial.

Of course, if you fail to make proper repayments after taking out a loan, your chances of obtaining credit in the future diminish.

[Dogedegen]

Instant loan apps are a menace to society. The initial phase is a data trap; as soon as you install the app, it scrapes and uploads all your contact details, gallery data, and location to its servers. The second phase involves their collection tactics, which rely heavily on blackmail. Since almost all of these micro-loan apps are illegal and this is a major issue in India, I am certain the exact same thing is happening around the world as well.

There are seven suicide cases reported in my state of Kerala alone. The latest one involves a BDS student who died by suicide recently in April. The government has banned several of these micro-loan apps, and yet they keep popping up, and the victims are mostly students and housewives..

Source: Nithin Raj suicide

They are not, I already explained it above and you didn't read my post. Anyone who commits suicide because of this is at fault, not the apps providing the loans. Such loans are available by reputable establishments already such as banks and depending on the country the rates can be 5% to 25% or even more per year with many providing near instant approval. That is not any different from these instant loan apps that you talk about, which must have worse terms than the respective banks in the countries. We need to stop blaming others for our own decisions and faults, it is time to become more responsible people and not give excuses for the wrong decisions. Many of these loans were taken as spur of the moment decisions, for reasons of greed or envy. Definitely in those cases no blame at all falls on the loan provider, only on the loan taker.

While taking out a loan in an emergency can truly be a lifesaver, turning it into a habit can lead to negative consequences. Given the current high interest rates, such debt could weigh you down for a lifetime, draining all your vitality as you struggle to stay afloat. That said, as you mentioned, there are times when you genuinely need the funds, and securing a loan at that moment can be beneficial.

Of course, if you fail to make proper repayments after taking out a loan, your chances of obtaining credit in the future diminish.

Many people do just that, and then we have other people who blame the loan provider instead of the people that do this to themselves. Nobody in the world can force an individual to take a loan under normal conditions, and rare conditions like under gunpoint can be ignored for this which means that only the individual himself is responsible. If some app provides loans with interest rate of 10000% per year, nobody forces anybody to take it! If someone takes it, it is only their own fault.

[bitbollo]

In some communities these have become really part of daily life. There are not only youngs but also adults.
Mostly of the advantages offered are going to be wasted by ruthless decision.
Likewise...if you need an emergency loan must probably you are not the best at managing personal finances.
Here I could see two types of persons... the ones that likes to take debt and the one that like to store and to save.
I don't see bitcoin as an instruments "only for savings" but probably an instruments that could change the way you're spending your coins.

[eaLiTy]

~
They are not, I already explained it above and you didn't read my post. Anyone who commits suicide because of this is at fault, not the apps providing the loans. Such loans are available by reputable establishments already such as banks and depending on the country the rates can be 5% to 25% or even more per year with many providing near instant approval. That is not any different from these instant loan apps that you talk about, which must have worse terms than the respective banks in the countries. We need to stop blaming others for our own decisions and faults, it is time to become more responsible people and not give excuses for the wrong decisions. Many of these loans were taken as spur of the moment decisions, for reasons of greed or envy. Definitely in those cases no blame at all falls on the loan provider, only on the loan taker.

I am not sure whether you are reading everything that I mentioned in my post. I will quote it for you again so that you can read what is written very clearly.

The second phase involves their collection tactics, which rely heavily on blackmail. Since almost all of these micro-loan apps are illegal and this is a major issue in India, I am certain the exact same thing is happening around the world as well.

~
The 22 year old BDS student from Kerala who died in April took a tiny micro loan explicitly because his mother desperately needed medical treatment. He was not trying to fund a luxury lifestyle; he was trying to save his mother. The operators went after his college faculty, morphed his photos, and harassed his social circle until the shame became completely overwhelming and took his life.

If you seriously think that this is normal behavior for instant loan app companies, then I have nothing more to say. I am not living in a utopian virtual reality to accept this as normal human behavior, nor should a financial company be allowed to blackmail and harass their customers just like that.

[Egii Nna]

People often complain about these loan apps because of their excessive interest rates and non-stop threats when due dates are not paid, but when they experience financial problem again, still they go back to these loan apps for fast release of cash. So with this, we can't expect from them to stop their operation because the demand is still high and they are still making obvious profitable income.

The only solution to this is, financial planning and budgeting. If you don't want to take loan from these digital loan sharks, then stick with your budget, delay your wants but prioritize your needs. Young people should also be aware about this so that they won't be making wrong decision and rely their financial problem solution from these loan apps.

Most of the young people now don’t even know how to organize a good budget. There was a day I was scrolling on TikTok, and I saw an account that is creating budgets for people based on their income. I was surprised, because in the comments section, many people were dropping their income to get a budget for themselves.

Although, you can’t create a budget without knowing the difference between your needs and your wants, which is the main reason for a budget. Because if you can’t differentiate them, even with a budget, you will still end up taking a loan. Which if the interest becomes higher you become disturbed, because you can’t pay it anymore, and the loan apps will definitely call for their money.

The most painful part is that some collect another loan from another loan app or website to pay their past loan, and they will just be in debt all the time. Collecting a loan to pay another loan will just increase the debt and interest instead of reducing it. The young people need to learn more, if not they will be in soup.

[Bright0515]

Taking loans from unreliable loan apps have unreasonable surging high interest so I don't suggest them as a good option. But taking loan remains a wise strategy, especially if you plan to put it up on a smart investment like bitcoin or gold, or build up a business that you are highly sure that the business will click and profit because you know well how to make it work.

However, there are factors to consider before taking a loan, like one should only have a small interest surge, borrowing on the amount you can afford to pay, most especially only take a loan when you have a reliable income to pay, and not because you rely on the future profits of your investment when you don't even hold the guarantee if your investment will make it long enough.

First of all, if you plan to start a Bitcoin investment you need to at least have something that gives you money no matter how small the income might be. When you take a loan especially from loan apps how much do you think you can get from them and is this going to be a sustainable way for you to get money to invest? Most loan apps expects you to pay back in 4 months Max, how would you do that when you are running a long term investment.