4 Reasons to Avoid Trying to Outsmart Moneylenders

Moneylenders sometimes have a poor reputation for employing less than ethical means when dealing with borrowers. This may include charging higher interest, excessive fees, and the like. It can be quite aggravating especially if you are in a tough financial situation. While a legalised money lender in Singapore is not likely to behave this way, some lenders tend to put good behaviour aside.

But that does not mean you should take measures to outsmart them. Doing that kind of thing is never a good idea for the following reasons.

It is unprofessional

Trying to outsmart moneylenders is not something that will reflect well on you. If you want lenders, banks, and other financial institutions to deal with you properly, you must also conduct yourself properly with them.

The best ways are to pay your monthly obligations on time and in full, respect the deadlines set in your loan contracts, and avoid using any form of threatening language when talking to your lenders. Maintain a level of professionalism, and lenders will respect you and treat you kindly.

Think of it this way. If you will not do it to your boss or colleague, do not do it to your lenders. Exercise the same level of professionalism with lenders as you do with your workplace.

It may damage your credit score

If you get into trouble trying to outsmart your lenders, your credit score will take a hit. And it may go down by a lot if you have committed a grave offence, such as intentionally defrauding your lenders.

Do yourself a favour and deal with your lenders with integrity. Avoid scammy or questionable practices, and you will keep a healthy credit score. In turn, you will not find it hard to apply for subsequent loans in the future.

You might have to face legal action

Once you are caught committing acts of fraud, your lenders may decide to press charges against you. In most cases, these legal charges will force you to pay a hefty fine. And more often than not, these fines cost a lot more than the unpaid principals and interest you have with the lenders.

Not only is legal action costly, but it can also ruin your credit score. Having lawsuits filed against you by your lenders will put a huge dent in your credit history. And it will drive down your credit score by much more than just delinquency or late payments on your loans.

It is unethical

Perhaps the most important reason is ethics. Trying to outsmart your lenders is not good behaviour in any way. If you want your lenders to treat you fairly, you must do the same to them. This is in keeping with the Golden Rule, which says “Do unto others what you want them to do to you.”

Conversely, you should also not do to others what you don’t want them to do to you. If you do not wish to be scammed, do not try to scam others yourself.

Remember that behaving ethically is the key to an orderly, progressive society. Always do what is right, especially when money is involved.

Conclusion

Outsmarting your money lenders is never a good thing. It has serious consequences that may even threaten your financial future. Instead, be as ethical and professional as you can be when dealing with your lenders. This way, they will treat you with justice as well.