Although it’s easy enough to know by the name that a money lender is a person or a company that lends money to people who need quick cash, only very few people know how they actually work. In this article, we’re going to talk more about money lenders and borrowing in general.
A money lender is different from a bank in that you don’t need to present collateral to get a loan. However, the easy access to capital is compensated by high interest rates. People who have good credit standing typically do not need a money lender if they needed cash. If they had a credit card, they would take cash advance. It’s the people who have bad credit rating, the ones who can’t get a credit who rush to money lenders.
Money lenders are known by their other names – loan shark, money monger, and usurer. People deride their existence but people can’t seem to live without them. It may surprise you to know that the people who are frequently in debt are Caucasian women between 25 to 40 years old. Also, their reasons for being in debt are also very simple – to cover monthly expenses.
If you constantly find yourself in debt, it might be symptomatic of a deeper emotional problem. Is there any way for you to become debt-free? Of course, but you might need to take a look at your self-image and your relationships with your mother and father.
You might not know it, but how your mother and father handled money is affecting your relationship with money right now. If they fought over money in the past, chances are it’s also affect the way you’re handling money now. You might want to think about this and really analyze yourself before you get into the vicious cycle of being in debt.