Today, anything can be obtained by way of debt. Ranging from cell phones, cars, motorcycles, to electronic goods. This is further supported by the presence of the vendor loans or leasing.
There is also the natural temptation to want a lifestyle item that we cannot really afford. Other priorities may get forgotten in the excitement of owning what others have – this is a danger when spending more than our monthly budgets allow. For example, when one is accustomed to buy books every month, but is squeezed by monthly debt to pay car payments, electronic goods, or the like, then he would not want to have to suppress his hobby of book buying.
Hence, the crush of debt will often one cannot afford the ‘luxury’ of hobbies, for example. At least not until there is a change in monthly income.Not to mention the absence of a change in income.
Another case of being needing funds quickly could be more personal, family matters maybe: The cost of children attending school, home renovation, a family member in the hospital, and so forth.
Indeed, there are still options that can be taken to get a loan when needing funds quickly. Each has pluses and minuses. For example, through the mechanism of credit without collateral (KTA). This option is most preferred because it is practical and relatively fast process. There are even banks that offer loans (usually by application online) that can transfer funds to you the same day. Even so, there are weaknesses in that the flat interest rates will be fairly high.
The next option is through mortgaging assets. Perhaps vehicle, house certificates, gold, or other valuable assets. Mortgaged assets as much as possible are adapted to the amount of the loan. But avoid mortgaging the house property certificate just to get a loan of Rp 10 million! Also don’t forget that if you fail to meet the repayments then the assets will be confiscated.
Another option is to withdraw cash from a credit card. This step is obviously very practical. But the main drawback is that the imposition of (high) interest is made on a daily basis, which stacks up very quickly until it is repaid.