Comments on: The Loan Trap http://expertdabbler.com/2006/01/16/the-loan-trap/ Rombo nallavan Fri, 18 May 2012 08:01:54 +0000 http://wordpress.org/?v=2.2.1 By: aval http://expertdabbler.com/2006/01/16/the-loan-trap/#comment-2944 aval Wed, 18 Jan 2006 15:20:00 +0000 http://expertdabbler.com/2006/01/16/the-loan-trap/#comment-2944 Loans for investment makes sense to me only when we are planned about how much percentage of our salary goes for saving. Loans are not a method to earn money. I agree it is a good point to discuss, it took sometime for me to understand the economics and how much it will take away the peace. today eveyrbody have their expectations or aims about money, not just to spend but to keep the people dependent on them in comfortable stage and all this depends on how much an individual is capable. It is an involuntary action. Loans for investment makes sense to me only when we are planned about how much percentage of our salary goes for saving. Loans are not a method to earn money.

I agree it is a good point to discuss, it took sometime for me to understand the economics and how much it will take away the peace. today eveyrbody have their expectations or aims about money, not just to spend but to keep the people dependent on them in comfortable stage and all this depends on how much an individual is capable. It is an involuntary action.

]]> By: Prabu Karthik http://expertdabbler.com/2006/01/16/the-loan-trap/#comment-2943 Prabu Karthik Wed, 18 Jan 2006 12:57:00 +0000 http://expertdabbler.com/2006/01/16/the-loan-trap/#comment-2943 Ganesh, Danks ganesh. i too suspect ppl do not realise the loan implications. Prem, your question prompts me to write whatever litle i know abt these aspects. am not an economics grad or literate. Deepak, you have an industry background. idhu pathi neraya eludhu da... Ganesh,
Danks ganesh. i too suspect ppl do not realise the loan implications.

Prem,
your question prompts me to write whatever litle i know abt these aspects. am not an economics grad or literate.

Deepak,
you have an industry background. idhu pathi neraya eludhu da…

]]> By: Deepak http://expertdabbler.com/2006/01/16/the-loan-trap/#comment-2942 Deepak Wed, 18 Jan 2006 10:06:00 +0000 http://expertdabbler.com/2006/01/16/the-loan-trap/#comment-2942 Good one.. I was wondering about writing it too, but along with Tamil Idithaangi, I too convey my congrats in beating us to it (Grr Grr). This is exactly my view too, banks and financial institutions always want a bigger share, in their words, customer loyalty to the bank, but in other words, more money from the customer. If a customer is already finding it somewhat difficult to payoff the credit card debt, but, it is very easy for him to get a credit limit inc as long as he keeps paying the barest min every month. That is the bank's way of ensnaring his committment to the bank. The customer on the other hand, after being ensnared, will call the bank customer service and crib about fees, say around 1% of his total outstanding, which the bank will write off, after much deliberation and the customer is made happy(!!) after one such write off. I am not saying that the banks or FI(s) charge illegal amounts, its all there in T&Cs, but who cares to read them ? At this stage, it will take X generations to payoff the debt, while the customer is living in a swank penthouse, with a Bose Sound Theatre system with a brand new Toyota Corolla, and all the time just transferring the salary every month into different loan accounts and credit card payments. Good one.. I was wondering about writing it too, but along with Tamil Idithaangi, I too convey my congrats in beating us to it (Grr Grr).

This is exactly my view too, banks and financial institutions always want a bigger share, in their words, customer loyalty to the bank, but in other words, more money from the customer. If a customer is already finding it somewhat difficult to payoff the credit card debt, but, it is very easy for him to get a credit limit inc as long as he keeps paying the barest min every month. That is the bank’s way of ensnaring his committment to the bank.

The customer on the other hand, after being ensnared, will call the bank customer service and crib about fees, say around 1% of his total outstanding, which the bank will write off, after much deliberation and the customer is made happy(!!) after one such write off.

I am not saying that the banks or FI(s) charge illegal amounts, its all there in T&Cs, but who cares to read them ? At this stage, it will take X generations to payoff the debt, while the customer is living in a swank penthouse, with a Bose Sound Theatre system with a brand new Toyota Corolla, and all the time just transferring the salary every month into different loan accounts and credit card payments.

]]> By: Prem Abraham http://expertdabbler.com/2006/01/16/the-loan-trap/#comment-2941 Prem Abraham Wed, 18 Jan 2006 08:47:00 +0000 http://expertdabbler.com/2006/01/16/the-loan-trap/#comment-2941 PK - I believe, it is part of a bigger economic cycle. Indian banks are cash rich and they have to push these loans to sustain their business. I do not have an economics background, so is interested in knowing from someone, what would be the downside of people not taking a loan ?. PK - I believe, it is part of a bigger economic cycle. Indian banks are cash rich and they have to push these loans to sustain their business. I do not have an economics background, so is interested in knowing from someone, what would be the downside of people not taking a loan ?.

]]> By: Ganesh http://expertdabbler.com/2006/01/16/the-loan-trap/#comment-2940 Ganesh Wed, 18 Jan 2006 04:05:00 +0000 http://expertdabbler.com/2006/01/16/the-loan-trap/#comment-2940 PK At the first glance I thought you were righting about life here in USA You right, we are heading in the wrong direction as far this new credit culture goes. :( do our desi folks realize how life could be a living hell if they fail to pay the loans. PK

At the first glance I thought you were righting about life here in USA
You right, we are heading in the wrong direction as far this new credit culture goes. :( do our desi folks realize how life could be a living hell if they fail to pay the loans.

]]> By: Prabu Karthik http://expertdabbler.com/2006/01/16/the-loan-trap/#comment-2939 Prabu Karthik Wed, 18 Jan 2006 02:21:00 +0000 http://expertdabbler.com/2006/01/16/the-loan-trap/#comment-2939 NK danks.:) but this has spread like an epidemic. jeevan absolutely true! krish welcome here! - >>as long as we u'stand the implications.... thats the key. spot on. Alas not many of the educated understand that. Jo so sad. NK

danks.:) but this has spread like an epidemic.

jeevan
absolutely true!

krish
welcome here! -
>>as long as we u’stand the implications….

thats the key. spot on. Alas not many of the educated understand that.

Jo
so sad.

]]> By: Prabu Karthik http://expertdabbler.com/2006/01/16/the-loan-trap/#comment-2938 Prabu Karthik Wed, 18 Jan 2006 02:18:00 +0000 http://expertdabbler.com/2006/01/16/the-loan-trap/#comment-2938 WA enaku seriousa purila. 50 llaks loan sadharanama vangaravanga ellam buthisaliya? Ravi danks. me very cautious abt that credit cards. i use it mainly for booking tickets and purchasing books in landmark. that too nowadays i use my debit cards. WA
enaku seriousa purila. 50 llaks loan sadharanama vangaravanga ellam buthisaliya?

Ravi
danks. me very cautious abt that credit cards. i use it mainly for booking tickets and purchasing books in landmark. that too nowadays i use my debit cards.

]]> By: Jo http://expertdabbler.com/2006/01/16/the-loan-trap/#comment-2937 Jo Wed, 18 Jan 2006 00:54:00 +0000 http://expertdabbler.com/2006/01/16/the-loan-trap/#comment-2937 Loans are the main cause of some of the suicides in Kerala. People do not even seem to think before they apply for a loan. Loans are the main cause of some of the suicides in Kerala. People do not even seem to think before they apply for a loan.

]]> By: Krish http://expertdabbler.com/2006/01/16/the-loan-trap/#comment-2936 Krish Tue, 17 Jan 2006 21:43:00 +0000 http://expertdabbler.com/2006/01/16/the-loan-trap/#comment-2936 Well said man! We can always go for a loan - absolutely no problem- as long as we u'stand the implications.... Also, I have seen my friends taking loans, so that it keeps their vigor to earn MORE MONEYYYYY... Well said man!

We can always go for a loan - absolutely no problem- as long as we u’stand the implications….

Also, I have seen my friends taking loans, so that it keeps their vigor to earn MORE MONEYYYYY…

]]> By: Jeevan http://expertdabbler.com/2006/01/16/the-loan-trap/#comment-2935 Jeevan Tue, 17 Jan 2006 20:51:00 +0000 http://expertdabbler.com/2006/01/16/the-loan-trap/#comment-2935 good post. now a day many calls are coming form Banks to my dad to buy a Loan. and asking u need a credit card. good post. now a day many calls are coming form Banks to my dad to buy a Loan. and asking u need a credit card.

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