Self-Education – The Secret Weapon of Responsible Borrowing

February 17, 2012 by  Filed under: Loans 

Since the economy’s collapse in 2007 we’ve all heard blame thrown from person to person, business to business, and party to party. Ranging from Wall Street’s predatory lending practices to homeowner’s irresponsible borrowing, it seems like everybody is looking to discover exactly which pillar holding up our financial foundation crumbled. Regardless of who or what caused the fall, we’re now in prime position to remedy the situation and put up safeguards to prevent a similar event from happening again. Each and every one of us can equip ourselves with a priceless and powerful weapon: education.

It’s been said in the oldest of adages and by the wisest of mouths: history repeats itself. But repetition has an Achilles’ heel, otherwise known as knowledge. If society educates itself and learns from the past, anytime negative recurrence begins to poke its head up from amongst the shadows, we can thwart it and collectively push it back into the depths from which it came.

While the public cannot always control what large corporations or groups do, they can control themselves-and that’s the key when it comes to financial stability. The future Wall Streets and Ponzi Scheme artists will be left to our nation’s laws, but if we all learn more about the lending community and acquire a loan education, we can each serve as the first-and strongest-line of defense in hindering economic instability.

Case and point, people are becoming more and more familiar with poor lending practices. Regardless of what lenders will now permit, many who seek mortgage loans will no longer agree to “no doc” loans of the past, where banks would allow borrowers to lie about their income. Society as a whole is now beginning to collectively learn that such a practice is not only bad for the nation, but for individuals themselves. The millions of homeowners who were foreclosed on after the 2007 Great Recession struck serves as ample evidence for such a statement.

Additionally, news and media sources are participating in and publishing much more extensive analyses of economic trends relating to loans. For instance, emerging consumer-oriented sites offering loan education are attempting to dissect every piece of news relating to loans, applies that analysis to other areas of the industry. This sort of study and service not only educates readers, but also serves as a mighty sentinel standing guard over the financing industry. When a narrow set of quizzical eyes are focused on an individual or industry, the willingness to participate in unscrupulous activity drops significantly.

Finally, there’s a noticeable push for the lending industry to become more credible and user friendly. The Consumer Financial Protection Bureau, a new government agency that’s meant to protect the public from poor lending practices, makes a valid observation that “Fine print can make it impossible to make a direct comparison between two different loans.” Some companies are answering that call, and striving to become credible and accepted sources of information.

As soon as our shaky knees strengthen and lift the nation back up to its full height, expect a population of financially educated individuals to keep the country’s footing firm.

After covering the world of home mortgage loans for three years, the writer of this article, Alex Gomory, is proud to have expanded his scope to the entire financing industry as a whole. To learn more about loans and read more of Alex’s articles and news stories, visit http://loans.org, where he and other staff writers continuously publish articles on a near daily basis.

Article Source:
http://EzineArticles.com/?expert=Alex_Gomory

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