The long chronicle of Debt part1

Debt, poorly managed, to ensure a lifetime of renting, paying someone else mortgage. it will ensure financial instability, the same difficulty. Debt can lead to very inappropriate. It has been known to destroy the chances, homes due to loss, shortened careers, marriages and wrecks, in extreme cases even lead to suicide.

Now the debt is not taken. On loan for a purpose that we can afford, as a house, is perfectly acceptable. However, borrow money needlessly is a problem. Borrowing money is needlessly caused by the desire for instant gratification, something that we have previously referred to as "The E Factor." To understand where we are today in the consumer debt, begin with a brief review of history. When I entered the financial services industry in 1972, I remember that Visa was just becoming popular. It has been around since the late 1960s, but it really started to take off in the 1970s. I remember to have representatives of the bank to come into our friendly offices in the Finance, one day, offering to pay us $ 1 each just to complete a visa application.

Before the arrival of the big bank credit cards, shopping in department stores would have to apply for a store credit card if they wanted. Then, gradually, department stores began accepting major credit cards, as well as their own. Anyone looking for a small loan can try a bank, but at that time, finance companies are those specializing in small loans. A Friendly Finance, we have people lined up the starting gate in mid-November each year for loans for the Christmas season. It was easily our busiest of the year.

Each time someone from applying to us for a loan, we would take a new application, and to reassess its ability to pay. This process allowed us to determine whether a person was a candidate for credit issues because we saw an overview of their credit history of the last application for a loan before. If they were too far in debt, and demand for credit too often or for trivial reasons, he gave us the opportunity to counsel the customer and encourage them to reduce their debt borrowing until that were under control. Sometimes, when a customer has borrowed from elsewhere to our knowledge, arid, he came to our attention that they had difficulty with payments, we offer "pool" of their payments to creditors without charge. "Globalization is a process by which the client pay a lump sum every month and we send to all creditors in proportion to the amount due. It was a form of credit counseling, all part of our professional services.

Thus, the process by which a new application and a new evaluation was made for each credit transaction, really helped keep things in check. It was a good service for the customer, even if most do not realize that. In many cases, it has avoided the suffering of people with very serious consequences of excessive debt.

Please continue reading part 2

Other part
The long chronicle of Debt part1
The long chronicle of Debt part2
The long chronicle of Debt part3
The long chronicle of Debt part4