Positive and negative aspects of credit. Is it worth taking out a loan? Positive aspects of consumer lending

Analyzing the development of consumer lending in Russia, one can highlight positive and negative features.

Positive features include:

• - banks receive consistently high profits;
• - increase in sales volume by trade organizations and car dealerships;
• - increase in purchasing power;
• - increasing the client base, both for banks and trade organizations;

TO negative traits can be attributed:

• - increased risks irrevocability cash, for banks;
• - significant overpayments for the goods that the client buys;

However, the comprehensive implementation of consumer lending programs brings more benefits to the country’s economy. positive trends, rather than negative. However, maintaining consumer lending in the forms that it currently takes is very problematic. The next stage (which has already begun to be implemented) will be non-targeted lending using plastic cards.

Now forms of such lending exist in Russia, but they are not very popular. This is primarily due to the underdeveloped infrastructure for accepting plastic cards for payment (a small number of POS terminals, imprinters, ATMs). And secondly, to obtain such loans, banks require additional confirmation of solvency from borrowers.

However, in the near future, following global trends in the development of consumer lending, in our country the retail banking sector will be transformed into the following main areas:

• - lending on plastic cards;
• - car loans;
• - mortgage lending
• -educational loan

To develop these programs, banks need to:

• - lowering interest rates as a factor in increasing demand;
• - insurance of financial risks against possible losses;
• - Creation credit bureaus throughout Russia;
• - development of banking infrastructure technologies.

Thus, we can conclude that the consumer lending market in Russia is growing rapidly, and this direction is the most promising for the banking business. However, the level of development of our consumer lending market is several times lower than in other countries.

IN recent years volumes of loans to individuals have constantly doubled, but the world financial crisis greatly influenced the lending market, forcing many banks to stop issuing loans without collateral. Today, interest rates in the consumer lending market are quite varied. Loans can be issued from 18% to 29% per annum, interest rates depend on the method of confirming the borrower’s income, the type of employment, as well as the term and amount of the loan. Consumer lending in the Russian Federation in its development should be based on the experience of countries Eastern Europe and the USA.

Each person has their own opinion about loans; some believe that by receiving money “up front” they can make the necessary expenses and thereby reduce the time to achieve the goal, while others consider loans unacceptable.

For the most part, people who refuse loans explain their actions by the lack of desire to make monthly payments, pay interest and generally be a debtor.

Is it worth taking out a loan? It is difficult to answer this question unequivocally, because on the one hand loans are useful, but on the other hand they drag debt trap.

Of course, loans allow you to quickly achieve your goal, be it purchasing a product or opening own business. Getting a loan nowadays is not difficult, and it is not at all necessary to provide documents on the amount wages(for small amounts).

In addition, many people find it much more convenient to pay off a loan than to save money. Firstly, not everyone can save fixed amount, because Each of us has additional expenses in our lives.

Secondly, to create a source of profit (which will be used to repay the loan), you may need start-up capital. When there is no money, but there is a good business idea and a great desire to implement it, a loan can be one of the options to overcome difficulties.

Negative side of the loan

For convenience, we decided to divide the negative points into 3 points:

1. Interest. Considering the interest that we have to pay, we buy goods at a higher cost. For example, when buying a car on credit, the buyer can pay 1.5 times the cost of his car. Naturally, such expenses are a negative factor.
2. Responsibility. After receiving a loan, there is a need to make payments consistently, and you need to treat them responsibly. If payments are late, additional interest is charged and your credit history is damaged.
3. Psychological state. The presence of credit obligations affects a person’s psychological state. Psychologists say that stress is one of the most negative conditions, and if you have a loan, people experience it quite often.

If you are wondering whether to take out a loan, then you should definitely information from this article will be useful. There is nothing wrong with loans, they really expand people’s opportunities, but at the same time you need to realistically assess your payment abilities, as well as consider the risks you are taking.

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In this article we will consider the topic of loans.

Credit is a wonderful thing, if you know how to use it, a loan will lead one person to financial well-being, and another to depression and debt.

Is it worth taking out a loan? - consider the pros and cons of loans and first go through the pros:

• 1. Credit is an excellent alternative to saving - especially if we are talking about large purchases and in the long term. It turns out that a loan allows you to realize your goals much earlier than you could afford. But there is an important note here - your loans must be planned taking into account the family budget.
• 2. Fix prices y - as if freezing under the terms of the contract. You clearly know how much money will be needed to pay for this purchase. No one can guarantee that tomorrow the price of a given product or service will increase or decrease, so this is an undeniable advantage, and it lies in the fact that you kind of freeze the price.
• 3. If there are any additional guaranteed payments to your income , for example some social benefits(pension, scholarship or rental income, say), then you can certainly use this to take advantage of the loan, expecting that you will pay the loan from these funds. For example, when I was a student, I took out a printer on credit according to exactly this scheme; my scholarship was exactly the amount that was equal to the monthly loan payment.
• 4. If you took out a loan and a purchase or service from it allows you to grow your career , then this is the so-called good credit. Because sometimes we don’t have a planned need to purchase some item, for example, due to the specifics of your work you need to buy a car, or undergo some expensive training to expand your business, loans will undoubtedly help with this.

That's all I wanted to highlight about the pros of loans, and now let's move on to the cons:

• 1. Money is overpaid for any loan - here we can talk about completely different costs of overpayment, and this will depend on many factors, for example, what type of loan it is: targeted, consumer, from a credit card, or lending in microfinance organizations, on the term of the loan, what the amount is, and on what conditions does a particular bank provide? All these factors will ultimately determine how much you overpay.

There is still one small nuance here, I call it “poor people’s thinking.” Very often it turns out that first we take out a loan, and then we think about how we will pay it off, hoping that maybe we will somehow sort out the loan anyway.

• 2. Loans put a lot of pressure on family budget in such a way that financially illiterate people, as a rule, do not plan their income and expenses, and of course purchases on credit. This is how they drive themselves into financial dependence and into a hole of debt. It turns out that if you have a loan, you cannot be sick for a long time, you cannot go on vacation, change one job to another, because you have obligations to banks and you cannot take risks, since in the event of any unforeseen situations you risk finding yourself in a very unpleasant situation when, in addition to the overpayment, you will also receive interest on the penalty. In this case, I strongly recommend that you keep a family budget.
• 3. If you took out a loan for entertainment , a very popular loan when newlyweds take out a loan for a wedding, in the hope that guests will give them money and they will go and close the loan and still remain in the black. It is very naive to believe that this is exactly what will happen. Or you take out a loan to somehow stand out, update your wardrobe, buy a new gadget that is now very popular and you need to be in trend. It is also stupid to take out a loan to invest money in some dubious and risky investment instrument in the hope of getting a fabulous profit and using it to repay the loan and even be in the black. Such loans are called bad loans and my recommendation to you, never take out a loan to live beautifully, to “celebrate”, and to invest money in an instrument that you do not understand.
• 4. Mental anguish - as a rule, when we close the next loan payment date, they let us go for a couple of weeks, and after two weeks a very strong emotional pressure begins, because we understand that the next deadline for paying off the loan is approaching and we need to deposit some money into the account, and again, if unforeseen situations happen with money, say, a delay in wages, then in addition to everything there will be pressure from banks, collectors, etc. It turns out that the euphoria from the purchase has already passed, but the negative aftertaste and emotional pressure will usually haunt you throughout the duration of the loan repayment, each time the payment date approaches.
• 5. Credit dependence - it turns out that in many families the following picture is observed: there is a mortgage, there is a car loan, a consumer loan, several credit cards etc., and covering all these loans takes up to 80% of income, which is undoubtedly a very strong credit dependence - this is not very correct.

To summarize, I want to note that credit is a wonderful tool if you know how to use it. If you soberly assess your financial situation, clearly understand what funds you will use to repay this loan, you are ready to pay and overpay interest on a product or service, understanding that it will really solve your issue or help increase your income.
I draw attention to the thinking of a poor person - if today there was such an opportunity to close loans, then most likely he would go and take it tomorrow new loan, due to the fact that he does not understand what an alternative might be and how to change his approach to thinking.

Banks, in conditions of high competition, are making loans more and more accessible to consumers: more and more loyal credit programs, the lending procedure itself has become much simpler. For example, until 2005, in order to take out a loan, it was necessary to provide local registration, a certificate of official income, liquid collateral (real estate, vehicles, goods in circulation, etc.) and down payment. Now, in many cases, loans are issued on the basis of a passport. At the same time, it cannot be said that consumer lending is developing completely without problems. On the contrary, the parties to legal relations are accumulating more and more claims against each other. Lenders are dissatisfied with non-fulfillment or improper fulfillment of contractual obligations on the part of individual borrowers, the number of which is also increasing as the scale of consumer lending grows. Cases of fraud on the part of individual clients are also not particularly encouraging. As a result of all these actions, banks have an increase in overdue debt, which causes a certain concern not only for them, but also for the authorities, since history knows examples when in some countries this led to economic crisis. On the part of consumers, certain and sometimes fair complaints are caused by the opacity of lending conditions, all kinds of additional commissions, not to mention paying for the services of independent appraisers, paying insurance premiums, and so on, which significantly increases the cost of loans. It was this circumstance that raised the question of the need for lenders to explicitly disclose the so-called effective annual percentage, that is, the total price of a consumer loan for one year, which should be indicated as a certain percentage of the amount received by the consumer under the consumer loan agreement. If the contract provides for the possibility of changing interest rate, or other conditions affecting the price (cost) of a consumer loan, during the term of the agreement the initial effective interest may be accepted as the effective annual interest annual interest. Meanwhile, it is interesting to note that these problems usually do not have such severity when banks are engaged in non-consumer lending, that is, when they lend legal entities And individual entrepreneurs, although in this case they are faced with non-repayments and the occurrence of overdue debts. Apparently, this is due to the fact that the group of subjects involved in entrepreneurial activity, are relatively small in number, and therefore their relationships with lending institutions do not receive the same public resonance as is the case in the case of lending to a multimillion-dollar army of consumers. In addition, entrepreneurs, due to the specifics of their activities, are more literate in financially than ordinary citizens. Let us summarize the identified shortcomings in consumer lending in Table 3.1.

Table 3.1 - Negative aspects of consumer lending

The bill “On consumer lending” has not yet been adopted, which would have legal regulation a whole series issues that prevent this type of lending from fully developing, in particular:

Promotion financial literacy population, its ability to plan personal finances;

Protecting borrowers when communicating with banks, providing citizens with all necessary information at the stage of concluding a contract;

Preventing debt defaults and protecting creditors, including by collecting information, credit histories, increasing the effectiveness of collateral and security institutions;

Creation of a system for dealing with problem debt - collection agencies, effective judicial and enforcement procedures.

Let’s take the same increase in the financial, and perhaps also legal, literacy of the population, their ability to plan personal finances. No matter how many laws are passed, things will not move forward until financial literacy is taught in school. It is at school, and not at the financial academy, because not everyone will get there. Everyone is already accustomed to the fact that our school very often loads children with knowledge that is too far from what they will have to face in real life, and at the same time does not develop skills at all, which are quite difficult to do without in our everyday reality.

The borrower, if he had a certain financial culture, could well calculate the effective annual interest on his own, and he should do this, because bank employees, like all people, it is common to make mistakes, if not in the calculation itself that the computer makes, then when entering the initial data.

Downside legal support development of consumer lending is to protect the interests of creditor banks.

One of the ways to protect their interests, as well as increase the responsibility of individual borrowers, is to develop and simplify the bankruptcy procedure for individuals as a guarantee of their repayment of their obligations.

Until now, bankruptcy of individuals is difficult to implement due to the presence in the civil procedural legislation of provisions that make an appeal to arbitration court on recognition individual bankrupt with virtually no prospects in terms of debt repayment.

In particular, Article 446 of the Code of Civil Procedure of the Russian Federation provides for the inclusion in the list of property that cannot be foreclosed on executive documents, residential premises And land plots, household furnishings and household items, livestock and the like. Obviously, in the presence of these restrictions, the formation bankruptcy estate seems problematic. And in in this case in practice, the bankruptcy of an individual, according to the currently existing rules, is beneficial, first of all, to the debtor himself, since it allows him to write off most of the debts in the event of insufficient funds from the sale of seized property to repay them.

Solving the issues discussed in this chapter will increase the confidence of the main subjects of consumer lending in each other and ensure their legal protection.