Monday, October 15, 2007

Banks or Us? Who is to be blamed?

Recent incidents of banks harassing people who are unable to repay loans are making headlines. Who is to be blamed? The banks or the people who fall "prey" to such offers? Here is my analysis to the story.
Banks are doing nothing but selling themselves when they offer loans,credit cards etc etc with lesser interest rates and other lucrative offers. You really can't blame them. Don't all of us do that at some point of time? I personally feel we should be careful about such "lucrative" offers.
Some personal tips and advices.

We should go through all documents religiously before taking a loan/credit card or any such thing. Any * marks should be clarified first shot and all promises made by the agent should be read and verified in the documents.

Do not go for more than one credit card. All the plans of transferring balance from one card to other will surely land you up in trouble one day. As you never know how much you are spending as it becomes difficult to track all the credit cards up to date.

Do not pester bank for more loan or to increase your credit limit on your credit card. Banks have their own mathematics which they use to calculate how much you will be able to repay and most probably that will be the maximum you can do.

Last but most importantly, do not go for anything if not necessary. This is applicable for loans,credit cards or any shoppings you do using your credit cards.

I am not giving a clean chit to banks here. But all I am saying is that , it is our responsibility to make sure we can make ends meet before jumping into something and then repenting for it.

P.S: I know I might be in a minority here supporting banks. I am open to comments. Pls keep them coming.

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