Poles’ debts increase, bank and non-bank charges are increasing every day. At the same time, the number of non-performing loans and unpaid or extended debts increases. In the media, information about this subject appears quite often, and even alerts about the catastrophic financial situation of the average “Kowalski”. Observing the situation, one can get the impression that some of us lend wherever she can. In other words, where he will receive a positive credit decision, regardless of whether it is a bank or a loan company.
There are various reasons for the growing debt of Poles and the reasons for their poor financial situation resulting, among others, from debt. I will try to diagnose these issues here in order to help you avoid mistakes that go through the credit line directly to the bailiff.
The main reasons for the financial problems of Poles, the reasons for which they are indebted
The most important reason that Poles’ debts are growing is the almost complete lack of financial education. According to my assessment, banks do not care about promoting “conscious lending”. This is due to the fact that every year the next generation reaches the age of majority, which ensures the supply of fresh blood to the banking system. It is known that young people have bigger needs and you can stick them more or less to banking products more quickly. In a word, debt and then enter into debtors’ registers. Why educate financially and care for many years of relationship with the client, when next year will come another wave of 18 year olds in need. Those who are already indebted and unable to obtain credit from the bank, in turn, become clients of non-banking loan companies offering terribly expensive loans called retentions.
On a young Pole, he earns a bank, a loan company and, consequently, as the last bailiff. Everyone is happy and “earn” what can be explained by the reluctance to make the young generation aware and spread the idea of conscious lending. Information on the subject of lending was admittedly found on the websites of non-bank loan companies, but they are usually limited to a few sentences placed on a barely visible subpage. Banks do nothing at all and there is no sign that anything will change in this matter.
Directly from the lack of financial education are the behaviors most often leading to financial problems. Consequently, this translates into the fact that the debts of Poles are growing. Let’s take a look at these behaviors in a nutshell.
1. Poles borrow hastily without keeping any security rules and common sense.
You should not think about any credit if:
- it is to be used to repay existing loans, loans from which services are already having problems (excluding consolidation loans ),
- you get income too small to make it possible for you to pay your debt, and you borrow for strength to satisfy your whim,
- it is known at once that a loan taken as an excess can be troublesome in repayment in the period provided for in the contract,
- there is too much burden on other liabilities that do not directly affect the creditworthiness, but they can be a big problem in the timely repayment of the loan (eg hidden maintenance or a high rent for housing not shown in the loan application).
2. You should not assume obligations without having an established professional situation, especially when:
- is a young employee without an established position in the workplace (in the case of redundancy, such persons are fired in the first row),
- the payment of payments takes place with delays, which most often indicates a weak financial situation of the workplace,
- the situation indicates that the workplace in which you are employed will go bankrupt and lose your job.
Many people, when thinking about taking out a loan and calculating whether they will be able to pay it back, do not take into account their professional situation. Unfortunately, you should pay close attention to it, because otherwise you can lose the ability to service your debt in a short time.
3. It is irrational to take out a loan or loan to impress someone or jealousy, especially when:
- one watches ads, looks at rich people in beautiful apartments acquiring valuable things and decides to live like them for just a moment (only for a loan),
- a lot of people post on Facebook or blog photos of exotic trips, and they also envy them and would not like to be worse. What’s better over a sweet focie in an exotic setting? Unfortunately, this is also the driving force behind reaching for a loan,
- Christmas or family celebrations are also an opportunity to induce jealousy (after all no one will know that it’s a loan) showing up in fashionable creations and giving the family unnecessarily expensive presents.
In the above-mentioned cases, but certainly not one should not reach for any, even the cheapest loan, because this may turn out to be the beginning of financial problems.
The most frequent causes of financial problems have been perfectly illustrated by Kruk SA
Consumer lifestyle gains an advantage over other values, also contributing to the growth of Poles’ debts
Our grandparents, to buy something more expensive, saved for this purpose. Our parents also saved and most often they chose a low credit to buy the dream item faster. Consumerism has almost become a religion and is spreading in a rapid pace with effective advertising. Saving for the dream thing almost went into oblivion, it is simply out of fashion. Today you have to have everything at once and, for that purpose, apply for a loan as the easiest way to satisfy your desire. If it is one desire or dream and a one-time loan, this is not a problem. Unfortunately, as a rule, it does not end on a single whim and in the near future more will appear. This results in the emergence of financial difficulties resulting from the excessive burden of a large number of installments. Thanks to this, not only the debts of Poles are growing, but also the number of non-performing loans. There are also more people in the credit loop.
Consumers with great pleasure, especially if something came to us easily. It did not have to be saved and it did not cost many sacrifices. Loans and loans for consumer purposes are very easy (often enough only proof), which increases excessive indebtedness. Unfortunately, after a nice, but short pleasure, an inexorable time of repayment comes and installments should be settled. It is no longer pleasant for anyone, especially since often after some time, there is a shortage of funds to cover all installments.
With the increase in the number of loans granted, the number of cases in the debtors’ registers is growing
The above table prepared by the Finance gong portal presents only an increase in the number of housing loans granted by banks. It does not include much more popular cash loans. It also does not include non-bank loans, so-called payday loans that have conquered the market and are used by a lot of people. With regard to cash loans and non-bank loans, this table would look quite different. All this makes the debts of Poles grow and the number of overly indebted people entered into the debtors’ registers.
Maybe it is worth considering consolidation?:
- Consolidation – repayment of debts, loans and loans
- Consolidation of loans – a solution for indebted parties
- How to consolidate loans? The basic principles of consolidation
- How to choose the best consolidation loan?
The financial situation of Poles is bad, as illustrated in the above table from the register of ERIF debtors. It is clear that the debts of Poles are constantly growing and within three years the number of entries and cases in the debtors’ registers has increased by two!
When the debts of Poles grow, their children’s perspectives shrink
This is one of many arguments, but how important and it is impossible not to mention it. Someone may say that it does not concern him, because there are no children. This is wrong reasoning, because the repayment of the obligation is spread over many years in the space that can appear in someone’s children’s life. So let’s remember that with every loan we reduce its chances for a happy childhood, leisure, education or training. The indebted father will not be able to give too much to his child. Love yes, but a child requires much more for proper development.
The threat of falling into a spiral of debt applies to everyone without exception
The risk of a credit spiral applies to everyone without exception. No one can feel safe, let alone say “it does not concern me.” The economic condition not only of Poland but also of Europe is not the best. The labor market also does not look good and one hears about bankruptcies of enterprises and dismissals of employees. It is not expected that the situation will change in the near future and therefore it should be approached with caution regarding borrowing.
What should you do to avoid increasing the amount of non-performing loans and debts?
Above all, you need to be wise and learn to count. The truth is that when you do not have enough money from the first to the first, you will certainly run out of money for the loan.
People with low income intending to reach for a loan should first of all pay attention to calculating their financial potential beforehand. You have to calculate your options carefully, taking into account negative options such as, for example, losing your job, to have financial security to cover several installments until you find a job. Credit through your path, and financial security for a rainy day is worth having to avoid unnecessary unpleasantness.
Also those earning more than the national average should not feel safe and exaggerate with loans. Nothing is eternal and you can lose your job every day, leaving you without a lot of livelihood to settle. These people should count the same strength for intentions and keep common sense.
The fact that the debts of Poles are constantly growing is obvious and I hope that I have brought closer the reasons for their formation. I believe that this article will support many people in their financial sense and help them avoid unnecessary indebtedness and falling into the credit loop.