It is a relevant question in a society where finance is everything and having debt can land you in a huge amount of trouble.
Getting into debt is unfortunately incredibly easy. Because almost everything worth having costs more than most people can afford to pay in cash, most people end up opening account, applying for credit cards and taking out loans. If an individual experiences a financial bump in the road by losing his or her job or having to make a surprise payment for which they are not prepared, they may not be able to make a payment in full or on time.
This can mean finding themselves in financial trouble. Financial service providers do not take kindly to having their payments missed and they will take legal action against any individual who does not make their payments on time and in full. Legal action like heavy penalties, seizure of assets and the process of blacklisting will befall those who do not keep up to date with their debt.
Those who have been blacklisted
People who have had trouble making their payments and who have been blacklisted will not qualify for a loan, credit card or account from any reputable financial service provider. If an individual has proved that they cannot handle their own finances and that they cannot be trusted to pay back a loan or pay their accounts, they should not be allowed to get themselves into more debt. It is dangerous for the creditor sand the individual and is a bad idea in general.
So who really finances blacklisted people?
There are, of course, some financial services who are not reputable and do not stick to a good moral and ethical code or even to the law itself. These companies are often called loan shark agencies and will charge high rates of interest (sometimes up to 1 000 percent) on loans. Money lenders cannot afford to pay them back and there have been incidents of the loan shark agencies using violent and aggressive means to get their money back. Of course, some people, even though they have had problems with debt in the past, might find themselves in a position where they desperately need money for something or other. Although it is dangerous for those who have been blacklisted to get themselves into more debt, sometimes it is unavoidable.
Reputable financial service providers will always do a credit check on you and will always want to see proof of a steady, reliable income that will cover all of their essential living costs as well as their monthly loan repayments. If a financial services provider does not ask to see these things, it is likely that they are not one of the most reputable firms. Another way to tell whether a financial service provider is not to be trusted is if they promise very quick loans. They will often offer ‘hassle free loans’ with little paperwork, no documents or background checks, and a cash loan in very little time. However, this is a dangerous lure for those who are desperately in need of money as quickly as possible.
What should blacklisted people do instead of going to loan shark agencies?
Instead of getting loans from loan shark agencies who are not reputable and who will cost you a large amount of interest that you might never be able to pay back, it is a good idea to instead focus on improving your credit record. There are many ways you can do this yourself and in a few years you will be able to qualify for a good loan from a reputable financial service provider. Although this is not a quick fix, you will be set up for years to come if you handle bad credit the right way. It is possible to pay for early clearance from being blacklisted and you can begin a new, sound credit record.