Money Lending Disasters: Cases Where Money Lending Went Wrong

Going to the wrong money lender can be a very, very bad decision. And worse, the wrong loan, or the wrong lender can do some exceptionally hard-to-fix damage to your personal finances. Don’t believe it? Consider the following cases where money lending went horribly, horribly wrong…

·There was that one case where a predatory payday loan caused one person’s holiday shopping spree to spike their interest rate to a staggering 651%. The Washington Post actually did a small article in 2012 about a person who accrued $1950 in debt due to a simple trio of $500 payday loans. Others in his position weren't so lucky as to be bailed out.

·There’s also the issue that many students are facing with student loans that they can no longer repay. Student loans are one of the few kinds of loans that are not able to be forgiven by filing for bankruptcy in the US. This means that students who can’t afford the loan payment plans often find themselves in major debt, with a low credit score, and reduced chances at home ownership.

·There are loads of cases where innocent cosigners end up bearing the brunt of the loan repayment simply because the primary signer bailed on payments. You really need to trust anyone that you cosign for. Getting sucked into a money lending scheme that hinges on you being a hapless cosigner is not something that you should ever have to endure.

·Another scary issue is finding out that the money lender that you trusted with your personal information stole your identity. This actually does happen with unlicensed lenders in Singapore and surrounding countries. You can avoid this by going to banks or licensed lenders instead.

·Loan sharking is scarily common, and can have serious consequences. Depending on your luck, borrowing from an unlicensed investor can end up with you paying much higher interest rates and paying back the loan, to finding your car stolen, being fined thousands of dollars, or seeing your family in danger if you default. Many unlicensed lenders are very, very unethical people, and there are lots of stories in police files that back this up.

There are many, many horror stories out there by borrowers and cosigners alike, ranging from annoyance at poor customer services to nightmarish tales of loan sharks. Make sure that you choose a money lender that is trustworthy, licensed, and ethical when getting the funding you need.