Getting a loan to be paid by the monthly pension

[Alexandoy]

Whenever I would go outside and see the sign that says “loans to pensioners” it always gives me the creeps not for myself but for the pensioners who would jump on the opportunity. A former colleague in the office confided to me that his ATM card for his pension is with the lender. After receiving the loan that he got the monthly pension would be his payment for the monthly installment for this loan. Isn’t it pathetic that my colleague would not receive his pension for a year? But that is the borrowers folly. The interest rate is 20% for 1 year which is not a joke.

My advice to people who are nearing retirement is to check their finances. Have an extra money for your needs for you cannot rely on the monthly pension which is meager. A friend who retired sold his big house and settled in a rural town. He has a nice house there, a big land and lots of extra money.

 

[sincerem]

Wise thought dear, i can't take such kind of loans with exorbitant high clause as its interest rate. 20% interest rate per annum for a retiree whose monthly pension stipend is low doesn't worth such interest rate. I never loved taking loans cos of the high risk involve around it. I can't see myself taking it and I'm not ready to enter into the risk of losing my assets when i didn't meet up repayment deadline.