Loansharks and Borrowers

Well, I will be posting about the above-mentioned topic.

Recently, there has been an article that states that goverment officials are thinking of making the borrowing of money from loansharks ILLEGAL. That means if you borrow from loansharks, BAM and you have just committed a crime. Well, do you think that doing so is a right thing to do? What are your opinions on this?

In my opinion, it is not very beneficial to a lot of people who are experiencing a financial crisis. I feel that the goverment officials are not putting the poorer group of people into consideration. Think of it this way. A lot of people who borrow money from loansharks due to the simple reason that they are unable to do so from banks. If you think that the bank is a charitable organisation, think again. They do not lend money to whoever asks for it. No, never in your life. There are a lot of conditions that has to be met in order to be able to borrow money from a bank. They have to check your salary, your financial status, your job etc. This is done so as to make sure that you are able to return the loan. Due to the conditions being set by the banks, many people are unable to borrow money as their monthly income is too low, or because their are in a financial crisis.

However, borrowing money from loansharks is simple. You ask them for money, they give it to you, you return it with interest, or else they beat you up. The bad point of it is if you are unable to return the interest, you would have to keep paying the interest until you are able to pay the principle amount. So one can keep paying the interest to the loansharks for practically their entire life.

Apart from that, many people turn to loansharks for"help" as they do not need to check the borrowers income or financial status just to borrow money. However, by making the borrowing of money from loansharks illegal, many people might not know who to turn to when in need of financial assistance.

I am not saying that borrowing money from loansharks is good. I am saying that you should not go around borrowing money in the first place. Here's a scenario. A nice happy family has a stable income and is living rather merrily. Then one of the family members goes around gambling and lands himself in a debt. They turn to loansharks for "help". However, they are not able to pay the debt and the loansharks go around beating up the family. Hmm... Not really nice eh? Just like that and a family goes destroyed.

Well that's the end of my 3rd post so see you soon...