Payday loans have become a big issue. An increasing amount of focus has been heaped upon the role of the lenders in these relationships. One idea that has been floated is that loan companies should help fund personal finance lessons.
You can click here to find out more about how many common loans work and why people may find them in financial difficulty. Some people believe that personal finance lessons would help, and this article is going to go into that very issue.
Why has this Debate come up?
It has happened because a lot of people have borrowed money they can’t afford to repay. To some extent, unscrupulous lenders can be blamed for lending them the money in the first place. But it’s important to mention that this is not always the fault of the lender.
Sometimes someone can have a perfectly good credit record, but they can’t handle money. They don’t know how much they can afford to borrow. And personal finance lessons may help to remedy the situation, but who should pay for them?
Do Personal Loan Companies Have a Sense of Responsibility?
Much has been made of social responsibility and whether companies have a duty to protect customers from themselves. There’s no law that states this responsibility, but it’s becoming an increasingly important part of company brand images.
This is a trend that has been seen in practically every industry. There are so many companies that have made a lot of money and a lot of new customers through philanthropy and doing more for their customers. Personal loan companies, in theory, can do the same.
But as to whether they have a sense of responsibility this isn’t always clear. There’s no real sense of responsibility. It’s the personal choice of the company. More focus must be placed on the education system.
Why aren’t People Prepared?
In order to see why this scenario happens it’s important to look into why it happened in the first place. The root cause of the problem is most certainly the education system. The current school system includes nothing relating to education. People are not prepared for the real world because they are never taught it in school.
The government has to be looking at ways to incorporate financial education into schools and colleges, so people are prepared when they enter the real world.
Another big issue is that people are not taking personal responsibility for their actions. It’s an increasing trend throughout society that whenever something bad happens it’s always someone else’s fault and this party or that body has to take action.
Personal loan providers have already given people the tools needed to take personal responsibility. For example, online calculators are available to show people exactly what they are borrowing, how long it will take for them to pay it back, and their regular monthly repayments.
As you can see, the answer is not as simple as funding personal finance lessons. What is your opinion on the matter?