DEBT: Who's to Blame ?

2014-11-13 04:28

Financial institutions and others blame consumers for credit card and other debt as they believe consumers should take responsibility for their actions.

I believe financial institutions are responsible for consumers spiralling debt. Financial institutions need to take credit checks more seriously before granting credit.

According to an article, a 65-year-old individual had been forced to abandon retirement after mismanaging funds between six bank credit cards and finally had to seek protection.

How can an individual be allowed to have six credit cards? Unscrupulous credit providers need to be brought to book for being "reckless" in their lending.

If the National Credit Act 34 of 2005 is implemented scrupulously and banks network together, consumers will not be able to overstretch themselves by taking out loans at different financial institutions.

Borrowing from a variety of lenders and running up enormous personal debts become difficult to repay and definitely needs to be curbed.

Why do banks and loan sharks lend money knowing full well that the borrowers, especially the lower economic working class, cannot ever pay it back and will instead be left paying the interest forever?

To quote Gilbert Harding, a former journalist; "A judge said that all his experience, both as counsel and judge, had been spent sorting out the difficulties of people who, upon the recommendation of people they did not know, signed documents which they did not read, to buy goods they did not need, with money they had not got."

In proven situations where loans were made without appropriate concern of the mortgagor, the banks must take blame and responsibility, too.

The National Credit Regulator needs to play a more active role to protect the hard pressed lower economic working class as this sector is not well versed in reading contracts and other fine print on contracts.

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