Never take loans from multiple sources

bala41288 in LeoFinance • 4 days ago

I want to share one of my friends' stories, who is currently struggling due to the loans he has taken. About a year back, I received a call from one of my friends who was out of touch for a very long time. He asked me if I could lend him some money because he was in a financial crisis. I usually don't lend money to anyone, the first reason being I'm not that well off yet, and the second reason is the belief that it spoils the relationship with that person.

But unfortunately, this person was insisting so much and I had to lend some money. First of all, even if I lend money to someone, I make sure that I don't give that money from any of my emergency reserves. I only lend money if I'm sure that I will be okay even if they don't return that money back to me.

Source

Curious about his financial position

Since I was lending money to this person, I was curious about his financial position. The main reason is because I want to know whether I would be getting my money back or not. But the way he explained, I was almost sure that I won't be getting the money back, but I still wanted to give because he used to be a nice guy and he once used to help others a lot without expecting anything in return.

He had bought a house and spent all the money on that house. The EMI that he was paying towards that loan was too much and a bit higher than what he would need to run his family. So every time, he was adjusting the expenses by lending money from someone. By hearing all these things from him and not through him, but instead through another friend, I was sure that I won't be getting the money back anytime soon but even then I wanted to support him.

Looks like he has saturated himself with all the contacts he had and got the money from all the known contacts. It is very sad to see him accumulating a lot of loan from multiple sources every month just because he was unable to make enough for the month. Currently, he is lending money from multiple people, and if one person is asking the money back, he is getting the money from someone else and rotating it. Apart from these, he is also getting loans for a higher interest rates from other lenders too which has currently put him in a very bad financial position.

Due to all these things, he is now struggling to pay his loan back, and at the same time, he has also lost his peace of mind and every month is a struggle for him now. The lesson to learn from this is that we have to be very careful with our desire. Even if we make some spending, we have to be calculative enough, and we should never spend money that we don't have.

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4 days ago in LeoFinance by bala41288

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ashokcan143 4 days ago

My present status is just like your friend, but with some improvement. My whole debt was based on emergency health issues and related. It's just that a small hope in my life has given me strength to pass through this and improve my life.

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5 votes

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india-leo 4 days ago

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5 votes

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5 votes

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momogrow 4 days ago

Lending money to friend is often bad business or a gift in the end. It is very kind of you to extend the loan although you know that the chances of you getting the funds back are very low.
Like you said people should manage their desires in order to live within their means.

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5 votes

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davideownzall 4 days ago

When buying a house you need to do proper calculations to be sure never end in red with the rest of family expenses, and yes money ruins friendships

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3 votes

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inuke 4 days ago

I think it's ok to borrow from multiple sources, if this helps bring over all interest that is being paid. And usually friends lends money with little to no interest. Id do that to manage the debt. But for no other reason.

I guess your friend has made a mistake somewhere if he is stuck inthe money rotation plan..

Rule 1 is always be clear from debts. This is something I had learnt the hardway. But a lesson for lifetime.

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5 votes

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goshen 4 days ago

I will not even advise anyone to try out loans. I actually try them out in the year 2023 and trust me, it really brought me so much shame actually

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3 votes

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djbravo 4 days ago

I have never taken a loan like this in my life because I know that if I have a hard time in life and I am unable to repay it, they will also sell my property and my house in which I am living a comfortable life.

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luckyali 4 days ago

This story teaches us that we should focus on financial management and think twice before taking any step. Good lesson for everyone.

!PAKX

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pakx 4 days ago

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daniasi 4 days ago

i wouldn't necessarily say getting loans from multiple source is bad. it all depends on what you do with it. loans for lavish spending even from a single source is bad. borrowed money should always be invested for future returns

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arveno 3 days ago

Loan can be double edge sword
If for business purpose and pretty sure with the profile risk, i think loan is a must.
But, if for lifestyle i think need to avoiding load.

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bisolamih 3 days ago

As for me, when I want to borrow some money, I always borrow an amount of money that I am capable of returning and if I am to lend someone money, I make sure it is not more than an amount I can dash out

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typebox 3 days ago

A powerful reminder to prioritize financial caution and values over temporary help. Thanks for sharing this important story.

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soltecno 2 days ago

It is a shame for the situation that your friend is going through, I hope you can overcome your financial statement or to become aware of the problem that is being caused for the future.
What happens to your friend reminds me of situations that I have seen happen in some companies.

I have seen people use that strategy to carry some businesses, it is commonly known as: money centrifugation.

The manager issued a check to pay debts with a bad check, right on a weekend when the bank does the clearing and verification, or the manager issued the bad check when there are bank holidays commencing.

When the days passed and the check was returned, the administrator had already asked for money and paid with another check without funds to other people and used that money to pay the debt with more time.

I think that today the verification of payments is much faster and that traps scheme can never be used again, but I know that type of administrators and will have created another way of doing a new trap.

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