Debt from Licensed Moneylender

Watch Out for Bankruptcy Signs:  Debt from Licensed Moneylender

Licensed money lender


When is the last time that you checked how much have you already borrowed and from how many licensed moneylender already? Well if you have not done that yet, you may want to immediately because bankruptcy is like cancer. If you would not catch the early signs, you’ll find yourself on the terminal stage where you can no longer know how to survive. 

Prevention still is better than cure. So to help you avoid that nightmare and possibility of becoming homeless, we give you these vital signs that you are heading down the bankruptcy road. 

You pay credit cards dues but only the minimum.

This one is tricky as it may seem that you are paying your debt by meeting monthly minimum amount. It appears that you are paying less but what you do not see is your credit card’s total amount swelling. Your money is just actually going to the interest, and only a small portion is deducted from your remaining balance. The best way to settle credit card dues is to pay the whole amount.

You are getting loans but not from licensed moneylender but from your retirement account.

Your retirement is one the most important events in your life that you should prepare for. And so if you have retirement savings already, you should not touch it or take anything from it. It is because it will be your main resource once you’re done working and already old. 

But if you have your debts piled up already, you will be tempted to get a small amount of loan that you think would not hurt your retirement account that much. However, what you don’t realize is that you also need to repay for that loan to your retirement account monthly. So in the end, you just added debt to your current debt.   

Third- party agency the money licensed money lender had tasked to collect your payments.

After several weeks or months of failing to repay the money you borrowed from money lenders, licensed money lender would now ask a third-party institution who will bother you enough to pay your debt. They may be kind at first at if you continue to pay as you promised, they can become real trouble for you. Usually, they would start with phone calls, and then visit your house or worse, a file you case which will force you to pay your debt.

Do you think you have the signs mentioned above? If yes, you should act now, and our articles here about managing debt from licensed moneylender can help you.