Are you indebted to a person or institution

Discussion in 'Debt Collection' started by Binu, Jul 29, 2016.

  1. Binu

    Binu Member

    When you want a loan, where do you go: to an individual or to an institution? What are your reasons? If you have a loan at this moment, how much interest rate are you paying?
  2. Ghost_Writer

    Ghost_Writer Member

    I never had the need to apply for a loan (because I always try to pay everything I buy with money), but one day, if I ever need... I'll ask an institution that has low interest rates and many payment facilities (is not easy, I know... but you always have to search for the best ways, right? ;)).
  3. Alexandoy

    Alexandoy Active Member

    I used to have an outstanding salary loan to the SSS here (that's our social security). They don't bother me but the penalties and interest are piling up. One time there was this condonation program where the social security office waived the interest and penalties so I have to pay only the outstanding principal of the loan. I hastily availed of that condonation and paid the balance. When I retired, that loan was paid for if not, the balance would have affected my pension.
  4. Decentlady

    Decentlady Member

    I never have taken loan as I am buy-only-if-you-have-cash person.
    However, if I did need a loan I guess it would depend on the amount. If it's a huge one I would probably turn to my bank and if it is small amounts I may ask my friends or family. Although I hope never to see such a day in my life.
  5. ReadmeByAmy

    ReadmeByAmy Member

    It is easy to apply for a loan either to an institution or to an individual who had a lending business if you had all their requirements before they grant you a loan. But the problem is the manner of how will you pay the loan. You can never tell what will happen in the course while you are paying the loan. What if there are times that you have no money to pay when their due date comes. So you will surely incur charges and penalties which will only file up to your principal balance. That is why I am afraid to make a loan because of this possibilities that might happen.
  6. tpicks

    tpicks Member

    I haven't taken a loan neither from an individual nor an institution largely because I like saving towards any future project I want to undertake. Some time ago I approached the bank to get a loan for my studies but unfortunately I did not get the loan because the collateral and others requested for were such I could not present. Besides the interest rate was a two figure which greatly took me off balance too.
  7. moondebi

    moondebi Member

    We had a home loan from bank which we had to take while buying our house. There is no question of taking such loans from individuals. Apart from that there were the occasions when we needed small financial helps. In those cases, we did not go to the professional money lenders, rather we borrowed from relatives which we paid back as early as we could.
  8. kamai

    kamai Member

    I have only had the need to loan from friends or family as of now. I try to not get loans from institutes since the interest can be pretty high. I am however in dept with many people but they are being nice enough to let me pay in a while. They say it's like saving up anyway like if I was some sort of bank for them.
  9. Zeta

    Zeta Member

    I find that institutional loans offer lower interest rates than individual creditors so when there's need for it, I'd rather take a loan from financial institutions. When he was alive, I used to borrow from my father but he wouldn't ask me to pay it back and looked at it as a love gift. I never want to borrow from relatives because it is very difficult to pay a debt of gratitude which remains outstanding long after the debt has been paid. My credit cards had kept me afloat when I didn't have a job for almost a year which was difficult because I am a single parent who's sending a child to school. So thanks to my good credit, I was able to weather that storm.
  10. Nocturnal Writer

    Nocturnal Writer Active Member

    I am almost done with my outstanding loan from the private person. What I have had right is from the Institution, a government insurance system. The priviate individual is charging me before the usurious interest, which 5 for 6, or 20%. It is good that I have already paid my loan with that lender.
  11. Fuzyon

    Fuzyon Member

    I'm not in debt at the moment but I've only applied for one at institutions, the sums of money I needed throughout my life were too high for my friends to loan to me so I had to go to companies. Most of the time I try to pay it ASAP and I never take out a loan with more than 3% interest.
  12. vinaya

    vinaya Member

    I have a loan in a bank. I took this loan to finance my business. However, my business is not doing well thus I am in loss. I also have burrowed money from individuals. When I failed to pay EMI for the bank loan, I had to burrow money. I am thinking to sell my property and clear the loan
  13. tpicks

    tpicks Member

    I go to individuals when I am in need of money, most of such money I go for are for fairly basic needs. The bureaucratic processes involved if I approach the conventional bank makes it tough for ordinary persons to get loaned money there.
  14. Jason76

    Jason76 New Member

    I owe some money for college books that I rented, but did not take back. In addition, I owe my mom for money she had given me over the years. Actually, I don't have to pay my mom back, but it would be the just thing to do.

    Note, as of right now, paying the 200 for books is an impossible action. However, maybe in a few months it will be possible.
  15. Working Buck

    Working Buck New Member

    I would preferably go to a person for a loan instead of heading off to an institution. However, the drawback of obtaining from an individual is how much money you can loan. If you need around P100,000, it's entirely elusive for an individual to lend you that sum of money.

    Perhaps if you go to an institution to loan the same amount of money, they would require lots of requirements not to mention the high interest rate. As well as the harassment that you can get from their collectors if you won't be able to pay in time.