-
admin - April 30, 2020
If you look up the word underdog, you will find its synonyms to be a victim, a prey and even a loser. You can probably understand the meaning of these. I will still give you a clearer picture.
- This person has very few people in his corner.
- This person is fighting against the odds.
- Besides, this person has the least probability of winning, because he is the weakest of them all.
There is an underdog in every field, from sports to education to business. Moreover, sadly, there is one in the loan markets as well.
WHAT DOES IT MEAN IN THE LOAN SENSE?
To be an underdog in the loan domain is the worst thing that can happen to you. You may not have done it willingly, and the circ*mstances may be out of your control, but you can still fall in this trap.
This happens when;
- You either jump your instalments more than once and repeatedly,
- Alternatively, you are unable to repay the loan entirely.
Now, you might have a logical explanation for the same,
- maybe you suffered from a health problem,
- or you could have been fired from your job and can’t find a new one,
- Or the business loan might not have fulfilled its intended purpose.
Nobody willingly avoids repayments; however, banks do not have an emotional side. They will not even try to understand your situation. Therefore, they will BLACKLIST you.
THE CONSEQUENCE
Now, if you look up the word blacklist, you will find its synonyms to be avoided, ignore, boycott and even the phrase ‘steer clear of’.
Therefore, the meaning of being blacklisted is that all banks, direct lenders or any other finance providers will avoid you, ignore your finance needs, boycott you and steer clear of your loan requirements.
Consequently, you will not be able to get a loan while you are on that blacklist. The duration of being blacklisted can last from half a year to half a decade. Since every lender consults this list, your chances of getting a loan are almost non-existent.
A question often arises here; what happens if the bad debt has been cleared off? Once you have repaid the loan obligation, it can still take months before your name is stricken off of the list.
This becomes a problem because getting a loan has almost become mandatory in the present times. You can’t take a loan, as this financial tool helps you bridge the gap between your income and your desires.
BREAKING THE SHACKLES OF BEING BLACKLISTED
Someone once said that no problem in the world that cannot be resolved. The solution might be tough to find, but you will get it.
This is also true for your loan conundrum. Blacklisted loans in Belgium were only curated, keeping in mind the needs of the underdog in the world of finance.
These loans are as the savior of this lot. Nevertheless, they can be too much for the borrower to take on. The three principles of blacklisted loans are;
- HIGH INTEREST
The interest rate for these loans is usually on the higher side. This is because the risk for the lender is too high and to compensate the same, he needs a higher income from the very first instalment.
- MANDATORY COLLATERAL
The Majority of the time, these loans come in the form of secured finance. The collateral can be anything, a car, expensive jewelery or even property. You need to be aware of the fact that if the loan is not repaid, you will lose your asset.
- SMALL AMOUNT FOR SHORT TERM
A blacklisted loan is available for a small amount, from €1000 to €3000 and that too for a shorter duration. Again, this is done to safeguard the interest of the lender.
A loan like this truly helps the blacklisted borrowers because nothing else will. Once you are out of the shadow of being the underdog, you can easily apply for personal loans in Belgium, and no lender will deny you the same.
WINDING UP
In the end, all I want to say is that financial troubles can happen to anyone. Therefore, you do not need to beat yourself up for it. What has happened cannot be changed, but what will happen to take on a more prosperous turn.
That is why; you need to keep looking for the perfect solution to your not-so-perfect problem. Besides, trust me, you will indeed find one.
