We hear cases of people defaulting in their obligations to repay the debts they have taken. We castigate such people and say all kinds of things. But why do people fail to pay back their debts? Is it every issue of failure to pay debts that is unwillingness to repay?
Why do people always fail in repayment of debts?
- Thread starter Trush Jodie
- Start date
I think the main reason for people not to repay is because they do not have money to repay or use their money for other purposes.
The repayments of debts comes with it's challenges like higher interest rates among others.
I don't there is any reason that will make a debtor fail to pay his debts. Some debtors are ungrateful and don't appreciate good gestures. If the loan is collected with collateral, they will be serious to make payment.
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It is usually different for each person. For some, it is probably because they do not have the capital to pay back, then there are those who simply just lack planning and management skills to do so.
When a person is in debt, they should handle it as a responsibility. That would push them to try and pay.
For the responsible ones it might just be circumstances beyond their control but for others it is indiscipline
When people genuinely can't pay their loans, it is always clear by the way they communicate and relate that challenge. It is quite different than people who don't even want to pay.
Some times we over commit our income. We lack money management skills which results in defaults on debt payments. You will find that someone earns $500 monthly with an obligation to pay $50 on a monthly basis but the person has overcommitted their income with expenses amounting to $700 on a monthly basis.
When you know you won't be able to meet up with your debt obligations, you communicate with good explanation. And it must not be often.
For me the reasons I fail to repay my debts is because the demand for repayment gets higher than that of what I borrowed.
Weren't you aware of the repayment plans before you agreed to take the debts? That is an irresponsible excuse not to pay debts.
Yes not seeing it as one free money. Some people don't just have it at the mind to pay up which is bad
