Top 5 reasons why teachers jump from one lending to another
What do you think are the reasons why teachers jump from one lending to another? Why can’t they resist the urge to wait for their current loan to mature before taking another loan?
Here are the Top 5 reasons why teachers jump from one lending to another:
1. No more room for another salary loan. Most teachers have several loans in the banks and these loans will be in a form of salary deduction. Salary deductions will appear in the payslip and thus presenting only the net take home pay of a teacher. If these loans reach its limit, a teacher can no longer avail a loan provided his/her net is the least. A teacher will then think of selling his/her ATM card to various lending sharks outside.
2. Most lending institutions have the highest interest rate. When a teacher has no more room for another salary loan from banks, he/she will jump to the lending sharks. These lending institutions have the highest interest rates. Teachers when in dire need of money will click the bait even if it means doubling the maturity date of their loans. Most of the time, teachers will not think of the consequences as long as they are able to solve their current need.
3. To pay the previous loan which is due, a new loan will arise. Most teachers have two to four loan accounts or even more. Sometimes, the payslip will show the undeducted loans. Adding up the loans not shown in the payslip which are due to other lending sharks. This will create a pain in the head and teachers will most likely add another loan to pay the old one. Now, the never ending problem will continue.
4. Some lending institution have higher principal amount offer compared to others. When a teacher is in great need for money, he/she will look for other lending offers much higher. This time, a lending institution will “BUY-OUT” the remaining balance. Of course, it needs higher offer to buy-out the previous one. When this happen, it will be doomsday for a teacher.
5. Never-ending need to survive in the cycle of life. Teachers like any other professions work to survive. How is it possible to survive when the price of all the goods and services rise and the salary is still the same? Have you not observed that everything now entails money? The price hike is transparent in the country yet the salary of the teachers is still the same. The imbalance is evident and thus will create another problem. This will be the culprit why teachers jump from one lending to another. – Clea | Helpline PH