It’s Too Easy to Get a Loan
Posted on 02 May 2007 by Daniel Dessinger
My parents recently moved back into the Dallas / Fort Worth area. It's great for me and my wife, but the circumstances of their move was more than a little stressful. I talked to them almost daily by phone throughout the whole ordeal, simply because their lives were at the moment more exciting than my own.
Here's what happened: Hertz Corp. laid off something like 92 people from their office in Oklahoma City. That left my dad with no job and a few weeks severance. There weren't any other COBOL / DB2 jobs available nearby, so they finally agreed to return to DFW.
With only a few weeks severance, my dad had to both hunt for a job and a home at the same time. My parents didn't know what to expect from a mortgage lender considering the circumstances. They had already learned the valuable lesson of how to consolidate debt, which meant lower interest rates and payments on existing loans. They needed one of those instant approvals without verification of income.
They actually found a mortgage lender to approve them for a home loan even before they had jobs in the area. That's ridiculous! It's these types of loans that encourage people (not my parents, but others) to be irresponsible and take unnecessary risks.
Then again, had they actually needed to use it, I suppose it would have been "convenient" to have a loan and buy a house during all the confusion of relocating. But does anyone seriously want a must pay $1K+ bill before they can guarantee the finances to cover it?
A bad credit loan make sense to a degree. Some people have valid reasons for their bad credit history. There are also some who choose to reform and need a fresh start.
An unsecured loan, however, is a bad idea. There's only one type of person you can expect to pay back an unsecured loan, and that's someone with impeccable moral standards. Those people are rare, though they do exist. I know someone who is in the situation to pay back an unsecured credit loan and he's one of the few people I can actually see following through with it.
On the whole, the stakes should be raised again. Regardless of what your holy Visa card has taught you, you are not entitled to credit. It is not a Constitutional Amendment. If you are going to own something (with the possible exception of a house), it should cost you money up front every time. Spending real cash is the only way you have a vested interest in taking care of the property. A person who receives products with no down payment will often naturally see the item as free and then resent the necessity of paying the bill later. Loans should be respected, since someone is footing the bill up front for you. You are receiving something without having met the criteria for possession. Take your freedoms seriously.
*this is a sponsored post
Popularity: 3% [?]
Recent Comments