You should ask yourself the moment you have spent the money: What is my source of fund of repaying the loan when the due date comes?
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I asked myself the very questions — in order to make sure that I won’t be into trouble. A loan from a loan shark is basically due in 14 to 30 days. We don’t have much flexibility in terms of time.
By the way, what is a loan shark?
A loan shark is a person who charges a very large amount of interest for lending money.(Cambridge Dictionary)
Most of the times, people are enticed to apply since loan sharks will not ask more requirements, and they will not perform credit checks like banks.
Here on Self-Help, we do not tolerate the habit of not paying a loan, since we believe that what is due to Ceasar is due to Ceasar.
There might be times that the payment is late — but we have to make sure that we can pay. That’s our obligation.
The advantages of paying a loan on time from a loan shark
- Avoid late fee charges
- Improve your credit score with the credit provider
- No headaches and stress dealing with a collector
I will give you a real example here, a real-life experience.
I had a loan with CashWagon, my due date was on the 15th of November, but due to some circumstances, I did not able to pay on time. I had availed the zero-interest promo for 10 days.
What happened then?
My original payable is PhP2,000.00 but since I am late, I incurred PhP500 late charge and 20% interest. The loan amounted to PhP2,900.00 were I could have settled it for PhP2,000.00 only!
Honestly speaking, it was hard to deal with so many callers in a day, it is as if I have owed them a million peso.
This is a real experience, and this could happen to you, as well.
When there is a quick cash loan offer from a loan shark here in the Philippines, think twice.
Do you really need the cash?
Or, do you have other options? If you have other options, don’t choose this quick cash loan offer… Because loan sharks are stone-hearted in terms of money.
A loan shark will never understand your situation, even if it hear your kids crying on the phone. The loan collector will not hang the phone and tell you to take care of the kid first — rather, the collector will ignore the cries completely. Their only after is for you to pay.
So, if you don’t need that cash badly, try to resist the temptation of a quick cash loan.
They charge fees not disclosed prior to the consummation of the loan, should I complain?
There is a so-called Truth of the Lending Act, however, complaining could be our last option, because it involves a lot of processes… and it might cost a lot of time, for us, as well.
In the case of CashWagon, I am not aware beforehand that I will incur a 20% interest rate outright after failing to pay the loan on the due date… I am only aware of the late charge of 500 Pesos because that’s the only thing stated on the loan disclosure statement.
In the case of LoanIt, it was not clearly disclosed that I could incur 5% late charge and 2% per day of the delay. Luckily, I have repaid on time.
I have settled my obligation with CashWagon and LoanIt around 4:40PM. My first choice was LBC, however, the cut-off time was 4:30PM. I went to the nearby Western Union branch, and they still catered me. Western Union has a charge of 3 Pesos per transaction, not bad.
The transaction was smooth and fast. I use Dradonpay as the biller. CashWagon sent a confirmation message that my obligation was fully paid right away. On the other hand, LoanIt sent the confirmation message around 30 minutes or so.
I also like paying on 7-Eleven stores, however, I was frustrated with their frequent offline problems. That is one of the reasons why I was late paying with CashWagon. I could have paid on the due date (around 7:00PM, but two of the accessible 7-Eleven stores had a problem with their payment facility — offline.)
Time is money.
If you have spent a lot of time going to PAO and coordinating with the SEC, that also means that you have to leave your work. Your absence means you don’t earn for that day or days.
If there is an easier option — that is to pay on time.
Your rights could be imposed against those harrassed lending companies — but the trouble that has made could be greater…
Our rights are enacted so that we can protect ourselves– but somehow — our rights are beyond reach!
Do you know what I mean?
Getting our rights granted and imposed is not that easy — and that is the rule of law here in the Philippines. Somehow, it could take forever… for nothing (let’s be honest here).
So, if you want a peaceful life, repay your loan on time. I have experienced the hassle already, not just now, but many times before — that’s why I want you to know.
Unpaid loans could bring family trouble
That could happen, to prevent that from happening, be honest to your partner. When I was newlywed, my wife knew about my unpaid loan with a credit card provider.
I am thankful that she understood the situation, but it was not easy at first.
So, this kind of thing — could be troublesome.
Okay, sometimes, you already have a budget to repay the loan — but you are tempted to spend that for some other stuff. That could happen, and when the due date comes — you already have a hard time putting the amount together.
So, am I telling you that loan sharks are not helpful at all?
In real life, I know most of us, or almost all of us are afraid of sharks. Sharks are deadly, right? Being coined as a loan shark doesn’t mean they are completely bad.
Of course, they are a big help when a tight situation came.
When there is no one to turn to, you can easily apply for a loan via your mobile phone — you just need an internet connection!
So, for me, I should maintain a good relationship with a handful of loan sharks…
- Tala Philippines is one of the best quick cash loan providers here in the Philippines with a significantly lower interest rate compared with other loan sharks. While other online lending companies do not disburse loan proceeds on holidays, tala will! Its system seems to be automated, that once your loan is approved, it could be disbursed almost in real time.
What if you are already harassed and maltreated?
So you could go for the last option, defend yourself because you have the right not to be maltreated (I have written so much about that, and how to cope up with the stress brought by being harassed and the thought of being buried with debt).
As I said in my previous post, when you cannot pay a loan doesn’t make you less of a person.
You still deserve to be respected.
Always remember, loan shark is making money by imposing a huge amount of interest.
And they make even more money when you cannot pay…
Actually, they know that harassment is illegal when trying to make an indebted person pay — however, they also know the rule of law is slow and the process is complex — that’s why they are not afraid to harass and maltreat you or even invade your privacy and spread to your friends you are indebted with them.
They will do everything just to make you pay…
So, before that happens, either resist the temptation, find another option or repay on time.
Talking about another option, why not check if you can apply for a Salary loan with the SSS already.
Before you go, you might be also enticed to apply for a loan with other people who advertise themselves to be lender or part of a lending company!
Don’t get too excited about their awesome offer! Make sure to check if the offer is legit or SCAM.