The Ease Of Applying For Loans

There used to be a time when it was a big deal to qualify for a loan but nowadays, it is so easy to apply for loans and approval is usually within minutes, without even the need for a credit check or to append any supporting documents like a pay slip to proof one has the ability to repay the loan.

I have friends who have so many credit cards and they can take out a credit card loan for each card. Naturally, they are financially not able to repay all their loans since they do not even earn that much.

There is a friend, Marc, who has such a bad credit rating and yet he needed a loan. Most financial institutions turned his application down, of course, but there was still a handful of lenders who were more than happy to approve his bad credit loan. I do not know if they are helping him or putting him in a worse financial situation.

People like Marc usually opt for an unsecured loan so that should they fail to repay their loan, their fixed assets will not be repossessed.

I did tell them to learn to consolidate debt for easier debt management but the way I see it, they are still leading a lavish lifestyle, rather than living within their means.

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