by Sharon Jones

Loans have a long history behind them, but knowing where they came from makes you one in a million! They’re extremely common, but they also appear to be extremely dangerous. It seems every time we hear of someone taking out a loan, they’re unable to pay it back. More and more people have bad credit scores because there’s no information out there when we’re just starting out with credit cards and the like, and finances have become more and more complicated over the past twenty years or so. So, with all this in mind, why are loans still around? There’s a few reasons why.



We’ve Always Done It

Lending is a concept that’s always been around. Even as kids we understood the basic concept of borrowing and giving back, and if we were responsible in school we remembered to give back the pen we needed in one of our lessons. Loans are in the bible and are littered throughout history; you hear about them a lot if you’re taking a course on any area of the past!

So, seeing as it’s such a set mold, getting out of the habit is hard. It also means introducing alternatives is a slow and gradual process. But, if more and more people realize this, a lot more can be done to combat the more predatory techniques in the financial world.

They’re Accessible

We hear about loans all the time on the television and when we’re surfing our social media. Take the online world for example: if we even take a look at possible outside financial sources, it’s all Google will target us for. More options for loaning money are out there nowadays, with companies like popping up every time you search for a loan.

With that in mind, we realize that loans are the most accessible form of getting money quickly, as fundraising for yourself takes a lot more time and doesn’t always get us the results we want. You can crowdfund and kickstart all you like, yet it’s all about reaching a goal within a few months. can tell you more.

But There Are Alternatives?

Yes, but none of them have as many partakers as loaning does. What’s even worse, people don’t know what they can use these other sources out there for! So we turn to banks. This often isn’t the best way of making the money you need, but everyone knows about it and what it can cover at short notice. You’re most likely going to borrow a loan for a house you’ve set your heart on or payday loan just to make it to the end of the month.

Banks make money by lending out and then generating interest on that, adding more money to the economy. When it comes to finding money in a few hours, or even minutes, asking a bank for some funds is usually the way forward.

Loans are accepted everywhere, even though there’s plenty of ways to make money!