Why people borrow money from loan sharks?

[hamster_ham]

Other than to gamble, is there any other reasons why people borrow
money from loan sharks?
Anyone care to share what you may have encounter or heard, or your experience?

A few week ago on the Channel 8, 6.30pm news, they interview a
school bus driver on the installation of seat belts.
The bus driver said something like his friend has 8 buses.
Even though govt will refund or something like that, his friend will
have to fork out (I think) 20K first.
His friend said
"where am i going to get the money, u wan me to borrow from ah loong meh?"

But after that, for all the news, that part of the interview was cut.

Heard of any strange reasons people borrow from loan sharks?

 

[mwjng]

There is only one reason in my humble opinion why people resort to borrowing from loan sharks. They need the money URGENTLY (like within 48 hrs) or they have run out of options.

Consider the following scenario. U have monthly liabilities for housing, car, family, kids etc. U are retrenched from ur job for the last 6 months which wipe out ur cash savings. Now u receive letters from the banks asking for your overdue loan repayments for your car and house. U cannot sell your car and your house now because if u do so, u need more cash to top up. The bank hires a legal firm that gives u a letter of demand to pay up within 7 or 14 days.

Because of your troubles with the banks, U receive another 3 letters from 3 other banks, stating that they have started reviewing your credit rating and since u have been having troubles keeping your payments to ur car and house, they decided to pull your credit card (which have already been maxed out) and ask u to repay the entire amount (say S$30k to $50k) again within 7 days.

What would u do? The easiest thing is to declare bankruptcy but because it is such a stigma that would only occur at the last resort, many people in such situations would be tempted to borrow from loan sharks, provided they can find one.

Do u know the irony? Loan sharks would not even loan u because of your poor credit rating......

Very sad but true. I am going into such details because I have experienced it myself and have heard so many sad stories like this before.

 

[Cestbon]

Other than to gamble, is there any other reasons why people borrow
money from loan sharks?
Anyone care to share what you may have encounter or heard, or your experience?

A few week ago on the Channel 8, 6.30pm news, they interview a
school bus driver on the installation of seat belts.
The bus driver said something like his friend has 8 buses.
Even though govt will refund or something like that, his friend will
have to fork out (I think) 20K first.
His friend said
"where am i going to get the money, u wan me to borrow from ah loong meh?"

But after that, for all the news, that part of the interview was cut.

Heard of any strange reasons people borrow from loan sharks?

Agree with the Bus owner comment. When install seat belts, bus owners need to pay cash or if very good relationship maybe can get creadit up to 30 days. But when bus owners make a claim to LTA it will take 3 months to get the rebate. So in between the rebate time the bus owner still have to pay upfront cash. If the bus owners don't have saving then the only choice will be laon shark.

 

[VIBGYOR]

you have to convince me first why i should lend you some money, but i won't charge you interests rates. why? because i am LOADED!!! .....AH LOONG...

 

[lifeafter41]

There is only one reason in my humble opinion why people resort to borrowing from loan sharks. They need the money URGENTLY (like within 48 hrs) or they have run out of options.

Consider the following scenario. U have monthly liabilities for housing, car, family, kids etc. U are retrenched from ur job for the last 6 months which wipe out ur cash savings. Now u receive letters from the banks asking for your overdue loan repayments for your car and house. U cannot sell your car and your house now because if u do so, u need more cash to top up. The bank hires a legal firm that gives u a letter of demand to pay up within 7 or 14 days.

Because of your troubles with the banks, U receive another 3 letters from 3 other banks, stating that they have started reviewing your credit rating and since u have been having troubles keeping your payments to ur car and house, they decided to pull your credit card (which have already been maxed out) and ask u to repay the entire amount (say S$30k to $50k) again within 7 days.

What would u do? The easiest thing is to declare bankruptcy but because it is such a stigma that would only occur at the last resort, many people in such situations would be tempted to borrow from loan sharks, provided they can find one.

Do u know the irony? Loan sharks would not even loan u because of your poor credit rating......

Very sad but true. I am going into such details because I have experienced it myself and have heard so many sad stories like this before.

Life will be hard if one's is being retrenched during such bad times. Unless he has solid savings to last for at least 6 months or more, it is going to be tough.

Banks are not charitable organisation, they are there solely for profit making. Do not expect any favours or help from them when the hard time hit. As the saying goes, They (the bank) can only sympathise with your situation but you still need to pay for your monthly installment on the house, car, or whatever that was bought on credit. Same goes for one's credit card too.

Nevertheless, to borrow from loan shark is tantamount to jumping out of the frying pan and into the fire, what's worse, you will not get peace of mind and just think of the harassment to one's family member, whether be it the spouse or the children.

 

[Ah Guan]

You don't need collateral to borrow from loan sharks

And admin process is simple.. just photocopy IC

That's why they are so popular with the heartlanders. Dunno whether things have changed by now...?

 

[jw5]

Other than to gamble, is there any other reasons why people borrow
money from loan sharks?
Anyone care to share what you may have encounter or heard, or your experience?

A few week ago on the Channel 8, 6.30pm news, they interview a
school bus driver on the installation of seat belts.
The bus driver said something like his friend has 8 buses.
Even though govt will refund or something like that, his friend will
have to fork out (I think) 20K first.
His friend said
"where am i going to get the money, u wan me to borrow from ah loong meh?"

But after that, for all the news, that part of the interview was cut.

Heard of any strange reasons people borrow from loan sharks?

Other than gambling?
To fund their lavish lifestyles?
To fund their drug habit?
To fund their business when they can't get a bank loan?
To fund their cheonging including their mistresses lifestyle?
To buy things, thinking that they will always have a job and income to pay back?
Lots of reasons.