- # Safer lending
Safer lending, stop spending
We chose safer lending, because if bankers lend money to people that can’t pay it back then they would end up gaining a lot more than they had given. As a result of this, bankers were becoming greedy and were being rewarded for giving out loans: even to people who couldn’t pay it back. This meant that banks were becoming poorer and losing a vast amount of money every day. The financial crisis has had a massive effect on everyone.
Here are our tips for safer lending:
Find the background story of who you are lending the loan too.
Make a limit as to what the maximum amount of money you can loan is.
Get the person to fill out a form about their past with being loaned money.
This is an example:
Mr Carter had saved up £100,000 but wanted to buy a house that costed 250,000 therefore he needed a loan. Using are choice of a safer lending the bank would have looked at how much he earnt every time he got paid money from his place of work. From this they would have worked out whether or not he would have been able to pay it back in a certain amount of time. If not he shouldn’t be allowed the loan but if he can he should be allowed the loan.