In the past, scarcely anyone went to get a loan. They were viewed as nasty.
Fifty years ago, if someone did not have enough money to shop for a product, they did not. They started to save and continued to wait till they had more than enough money to buy it with the money in their savings account.
Then everything changed, men and women expected to own the up to date merchandise and kitchen appliances straight away. They didn’t have the patience to wait for a number of days, months or years before they could afford to pay for them.
The country was in good financial circumstances, the banking companies were prepared and eager to lend funds to virtually anyone who needed it.
It didn’t make any difference whether it was a large sum for a property, a smaller sum for a vehicle, just a little to get a different TV or, even more recently, a quick payday loan to keep us going until the end of the month. Funds were flowing just like water anywhere and everywhere.
The marketing media and the companies they were promoting have been a good deal to fault for this scenario I believe. They appointed high class copywriters to produce sales adverts which tempted us into having to go out and get all of the most recent things.
Then it altered.
Wall Street collapsed and various finance companies learned that they had given loans to a lot of people who could not find the money to keep up with the monthly payments for them.
It wasn’t their fault at all times. They had frequently been made redundant.
Nowadays we’re returning to viewing an interview with a loan company as an unpleasant thing, a bit like sitting down in the chair at the local dentist’s surgery. I’m sure that that is mainly because we’re feeling that we ought not to be there and that we should have saved the money first.
We have to wait in the waiting room, hating the thought that some of our close friends will arrive and wonder why we are there. Should we lie or be honest.
Once we eventually get in and meet the advisor we find endless documents to fill in. It seems that many of these are rather repetitive and facts that they ought to have on their records as we’ve been banking with them for ages. Regardless of how good a customer we’ve been before, they still have got to do a credit assessment to discover if our credit score is acceptable.
They really should know already, we have not missed a payment on anything since we have been with them.
While the computer system is processing this we begin wondering whether or not somebody has reported us in error or it’s possible the credit reference agencies have got our details incorrect or something.
When the PC eventually says all is okay the manager will tell us how much we need to pay out. That is a really unpleasant time, do I really have to pay all that each month for 5 years?
All in all, I’m sure that I could possibly get back to the age of my ancestors and begin a savings scheme to ensure that I can pay cash for whatever I like.