Almost 84 billion hryvnia! That is how much the debts of Ukrainians are, that is, consumer lending. The level of loans taken by Ukrainians rose by 5.7% for the first quarter of the year, and if taken on an annual basis, then by 37%. For banks this is an absolute plus, but for ordinary citizens?
Of course, if it were a question of lending to small or medium-sized businesses, one could speak about a common good here. However, in January-March, the figure rose to consumer loans. People began to borrow more often for various needs, in particular for household appliances. After all, consumer lending is the most attractive method of earning for banks.
Banks are constantly reviewing the terms for issuing funds at interest, making them more attractive to customers. Credit cards, installment payments, part payment – from a variety of proposals ripples in the eyes. Phone, car or apartment – you can take everything on credit today. And, of course, this is a plus, money is released that will be directed to primary needs, and the loan will allow you to purchase what you want with less damage.
“I constantly use the money from the credit card during the grace period, when there is no accrual of interest, I buy everything I want without waiting for my salary,” says 26-year-old Oksana from Novomoskovsk.
The seeming advantages of loans are increasingly attracting people. However, let’s look at the disadvantages of consumer lending. Firstly, it is interest that ultimately has to be paid. In addition, inflation is also pretty “bite off” part of your income. Secondly – a penalty that will be added in case you miss a payment.
And, if you happen to force majeure, for example, dismissal from work, how to pay with the financial institution? The bank is completely uninteresting. In addition, the constant use of “foreign” funds can lead to dependence no better than the drug or alcohol. So the Ukrainian gets into a debt hole, putting on a credit yoke. The consequences can be the most deplorable from the loss of housing to the loss of life, when a person can not withstand the burden of obligations, ends with himself.
If we talk about European countries, the percentage of credited citizens there is higher, but there the conditions are incomparably more favorable. For example, mortgages in European banks will be 3.5-5% per year for 20-25 years, while in Ukraine the figure reaches 23-25% for 10 years, with the maximum permissible in 27, 4-27,8 % and this is with incomparably low incomes of Ukrainians in relation to other Europeans ?!
Why do people use loans? The first thing that comes to mind is the lack of funds. But where do they come from if you constantly give away debts? It is often a matter of inability to manage your money. Since childhood, we have not been taught financial literacy, believing that this is self-evident, but this is far from the case. It is important to study the money issue from the moment when the child has pocket money. Everyone is able to pay attention to their financial literacy, because the growth of income without this is not possible.