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Reasons Why Sari-sari Store Owners Across the Bilibid Viejo St., Quiapo, Manila Prefer Having Financial Aids from Loan Sharks Over Other Financial Institutions Submitted by: Cortero, Harold P. Marcellana, Adrian G. Sangil, Catherine Joy M. BAD
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Chapter I The Problem and its Background Introduction Debts have always been part of Filipinos’ lives. These cannot be separated from people. Debts come in different forms; they may be in a form of money, in a form of goods, in a form of services and even in a form of gratitude. Goods and services owed may be paid in a form of money, the same good or a different one or service. Debt of gratitude is something that cannot be paid of any other thing aside from “paying forward” or by doing a good act not only to the person you are indebted to but also to other people. And lastly, money owed may be paid in a form also of money, goods or services. This is the most famous form of debt; for almost everybody needs money and their income is not enough to suffice their need that is why they ask for loans. While money or cash is important in Filipinos’ lives, people should not dwell much on how can they get additional cash for the our expenditures but they should look into how can they actually manage their money responsibly in order for them not to need much of it. It is better to have more money if you have bigger expenses but if you only have few
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income, it is best to consider the necessities first rather than to be luxurious or to ask for loan. A need for a loan would mean a lot of things and one of it is being irresponsible. Responsible holder of cash would be able to budget his finances properly and he will not be able to have any problem with paying lent money. The bottom line is asking for financial help from others is not bad as long as you know your capacity to pay loans and that expenses to be made out of these loans will yield future economic benefits on the part of the debtor.
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Background of the Study As early as 19 th century loan sharks became rampant in America due to the emerging demand for small-time lending. Banks and other financial institutions stayed away from small loan seekers since most of them are irresponsible in handling their money. Loan sharks saw this as a possible area for preying on desperate small loan seekers that is why, though illegal, they were able to do their work as “saviours” of these desperate people. They appear to be lenders with legal rights and, hence, debtors are afraid of not paying them with usurious interest rates because they are afraid of being charge of any offense in court. Loan sharks modify the amount to loans to be lent to debtors to suit the borrower’s means but the smaller the amount to be borrowed, the higher the interest rate. Some lenders are lenient with regards to the loans they have granted while most are very cruel and most of them would try to take everything that a debtor owns as a payment to the loan. The latter resulted into different organizations, illegal for that, which controls small-time lending
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This note was uploaded on 03/11/2012 for the course LAWYERING 101 taught by Professor Fredfreud during the Spring '12 term at NY Law.

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research - Reasons Why Sari-sari Store Owners Across the...

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