Emergency Loans: Is It Worth It?

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Applying for a loan, whatever it may be, to cover an emergency or get out of a financial situation that one is having at the moment, does not always seem like a good idea to me.

And this is because I see the matter from the perspective that you have to have an established plan of how to pay that debt that is acquired from the beginning.

And not simply believe that the idea you have is going to produce money, because first you have to have very well established what the destination that is going to be given to the money that you are requesting to borrow.

You have to have a plan to be able to multiply that money and be able to pay the interest, because precisely the double-edged sword that I see with these loans is the interest that accumulates.

And for me it really doesn't make much sense that I request a loan for 10 dollars and end up having to pay 15 dollars, which is 150% more for interest and all that.

I understand that if in an emergency situation such as an operation, a medical expense or necessarily having to pay for a repair of damage that our business or the premises of our business has suffered, that perhaps there are unforeseen things that may appear to us, our lives such as the fire or theft of our business and we have to replace the merchandise or situations of that type, or small accidents that may occur, that certain merchandise that we have is damaged, certain foods or some equipment is damaged and well it turns out That equipment is where we refrigerate our food, our cheeses, our products, our soft drinks, and we depend on them.

In that case, it would be necessary to apply for a loan, but generally speaking it is not something that I like to do.

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I believe that I have never requested a loan from a financial institution in my life, precisely because the closest thing that has happened to me, and the experience that I come to tell here, is when around 1997 I requested the acquisition of a new computer, which I actually needed for what I had at home to do my work and my internet browsing, and different things I did, and I acquired the computer through the credit card.

The point is that I managed to pay all the computer fees through my credit card, and that debt for the computer itself, I managed to complete and pay off with the interest.

But the problem is that due to a situation beyond my control, they began to bill me for something that was additional to the charge for the computer itself, an internet plan and something that I had not requested, and they charged it to my credit card. .

This was where the bad experience came, because obviously the bank intended to charge me for this service and told me that I had to understand or fix the situation with the people who were billing me for that expense.

And when I went to the store where I bought the computer, they told me that I had to directly talk to the internet company that was billing me for that service, which by the way I was not using, and that I did not want to, and that I ordered it to be cancelled.

I categorically and very solidly demanded that this service be eliminated because I did not want it from the beginning, from the first day, and they continued to bill me for it.

The company told me that I had to come to an agreement with the bank, and then the bank sent me to the company and the company to the bank, neither of them could agree because one of them told me that they put the blame and responsibility on each other. .

The only way I had was to pay for it no matter what, even if I had not enjoyed the service, and it did not seem at all ethical to me to have to pay for a service that I had never used and for which they were charging me.

That is as if they were charging me for a meal or for a computer that I had not bought, it is completely illegal, and evidently I did not pay that billing, or that charge they made for my credit card, so the interest started. to accumulate and to this day they try to collect that from me, but I think the debt has expired because more than 20 years have passed and it is the debt for a collection of something that is illegal and illegitimate, so it is not my responsibility to pay and it is not I plan to do it.

If one day you don't know more about me, you already know in advance that it's about my home being repossessed, for not wanting to pay a bill for a service that I never used and didn't even ask for installation.

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And that's what I told them, nowadays if there was a lawsuit or something they could seize my apartment or something like that, simply for having a debt that is the equivalent of a month of intern payments.

But of course that throughout these twenty years, from 1997 until now, it has accumulated, so it would be interest on interest, so today if I had to pay that debt, it would have to be such a high amount. like the cost of my total housing.

It would be crazy because the interest has grown to the point of having to pay what my own apartment is worth, it is totally irrational, because in the beginning the debt was only equivalent to something as stupid as ten dollars or five dollars, so it is impossible , it is completely illegitimate that they require me today to pay the amount of an apartment, which is 17,000 dollars.

It is not possible that a person be required (and it is not logical that they be required) to pay a debt that was initially $10 and that currently, due to interest, that debt has risen to a value of $20,000 through all these years.

There are things that don't make sense and this is one of them, but I can say that I managed to pay the computer debt without any problem and on that side I wouldn't have any complaints. I would have problems with these people who are billing me for an internet service that I never (not even once) used and they are charging me for it.

For these reasons, I do not trust banking institutions, nor these financial services, because sooner rather than later they will end up appropriating and taking from you everything they can take from you.

So I think that I would use these financial services only in cases of extreme emergency, in reality it is not something that I like, it is not something that I promote, and that motivates you to use it.

While you can have your savings and depend exclusively on what you have, my financial suggestion is that you do not use any of these services, unless it is a life or death situation, because it is really not something that I see as very positive.