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Tea with KenjiFX: 3 types of people who borrow money.

Friday, October 31, 2014

There are many types of people who borrow money (from friends and family) and here are 3 types listed by KenjiFX (AKA KenjiWealthMgt in FB):

1. People who borrow and want to repay the loan but lack the ability to do so.

2. People who borrow and never intend to repay the loan even when they have the ability to do so.

3. People who borrow continually.

For example, borrow $50, repay $20, borrow $70 later to round up outstanding loan to $100, repay $30, borrow $80 to round up outstanding loan to $150 and it goes on to a point when they really can never repay the loan in full.

Perhaps, we know some people who fall into the three categories above?

It has to be said that getting into debt is easy while getting out of debt could prove to be really difficult.

Credit Counselling Singapore (CCS) revealed the following reasons for Singaporeans having debt problems:

 49% all debtors helped by CCS blame overspending!

"Just because our friends or family members have a car (or two) or a condo (or two), it does not mean that we should have them too..."
From: If we are not rich, don't act rich.

“We need much less than we think we need,” Maya Angelou.

Related posts:
1. Lending money to someone you care about?
2. An easy way to improve cash flow in life.
3. The secret to avoiding financial ruin.


Richard Ng said...

Hmmm... What about the type of people who lend money? ;-)

temperament said...

i have come across all 3 types. Maybe you can think of another. How about borrow from you because you are just to nice to say no? Not me hoh!
i think there are only a few instances or circumstances that getting into debt is justified. And don't ask me. i can't give myself away for you to ask for a loan right?
There is wisdom in if you loan to someone, considered as a write-off or gift in your heart. That is you feel you need to make that loan one way or another.

AK71 said...

"Debtors usually have more than one reason. They may overspend and then become more vulnerable to get-rich-quick schemes, time shares or gambling, and one thing leads to another and the debt gets bigger and bigger," said CCS president Kuo How Nam.

"But the first cause is usually overspending because many people are living lifestyles not justified by their incomes."

There may be more than 40,000 people who owe more than a year's income from credit cards and other unsecured loans such as personal lines of credit or overdrafts.

Last year, the average debtor who turned to CCS for help owed $84,447 to seven creditors, but Mr Kuo said that figure is skewed by gamblers, who owe the biggest sums. Most others have debts in the tens of thousands of dollars, and they make up a big group.

"A lot of it has to do with peer pressure or their own values. Some people say they feel they deserve to indulge themselves - they've worked hard, so they deserve to take more cab rides or a holiday even if they can't afford it," he said.

Source: The Sunday Times, 2 Nov 14.

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