All About Loan In Singapore
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Taking Personal Loans For Travel And Luxuries Is Credit Suicide

The world is credit happy and part of that we owe to the invention of credit cards. American Express is the company that really started the credit card frenzy. Up until 1987, all credit cards had to have the balance paid off at the end of the month. American Express decided that it would be a great idea to allow people to make monthly payments on the balance of the credit card. Thus a credit happy nation was born. Now people could shop for clothes, go out for dinner and drinks, without any immediate worries. The money could be paid in the future. There are even extremists who actually feel that they have the right not to repay the money they have spent from credit cards.

It’s a sad reality that some people have adopted the credit suicide idea. Instead of saving up actual cash to pay for a purchase of a big screen television, with surround speakers, they will head for the credit card or if it’s a very expensive television, even go so far as to take out a personal loan. There is a sense of entitlement in some parts of the world today. While children die everyday of starvation, people around the world are placing items like a boat cruise on a personal loan. The rational that they use to convince themselves that this is okay…is that they work hard and they deserve to play hard. In truth, they are digging a grave build on debt accumulation, that may never be paid off in their lifetime. In some cases, the debt is passed to family because the loan or the person was not insured.

Frequently life insurance representatives have to pay a visit to a deceased’s loved ones. They collect the death certificate and then come back with a check for whatever amount of life insurance the deceased carried. If a mega amount of debt had been accumulated, the sum of the insurance check will hardly cover it. So sadly, the remaining family is stuck trying to come up with the money for debt repayment.

There are two types of personal loans available, secured and unsecured. While secured may bring a lower interest rate, it can be typically covered by the asset of a person’s home. We can look at the picture of a person or a couple who decide that each year, they deserve to have a two week vacation on a lovely island like Maui. Off they go to the bank and get a secured personal loan to pay for hotels, planes and other vacation items. Perhaps they have not even paid off the first loan and are now adding onto it by borrowing more. Should one or both parties suddenly become unemployed for a long period of time, the house which is their major asset may be have to be sold. It is a sad occurrence to see a family, especially those with children, lose their family home because they decided to use personal loans for items which should really be paid for with saved cash.