Apple of my Eyes

Thursday, February 21, 2008

Debt Management

Few years ago, I worked in a lending investor company. I met different kinds of people. Some were honest on their financial situations and some were still on denial stage. We only approved loans with collateral, it could be certificate of title, car registration or even rights. Before the loan was granted, there were so many procedures to be done. One was the credit investigation process, wherein one of our employees will check the financial status of the costumer, the source of income, family background, existing credits to other financial institutions and other related matters that will lead to the approval of the loan.

Some creditors were really leading to bankruptcy. We wanted to help but some were helpless. They should have debt management plan at the very beginning. One of their mistakes was the restructuring of their loan. Just because they wanted to have another cash on hand they were not thinking of the bigger interest being added to the loan. When their loan was already due, they will make another loan to other lending investor to cover up the interest due of their existing loan. Which for me is not a wise decision as far as debt matters are concern.

Posted by Ann :: 4:38 AM :: 0 Comments:

Post / Read Comments