Today we live in a consumer society, where people generally exist between working and consuming throughout the day. If you are not working or sleeping, you are probably consuming some kind of service, or purchasing something. Other than that, you are consuming TV-programmes, internet content, a snack, or anything else for that matter. Even eating or drinking, the one not necessarily excluding the other, is considered consuming. In this day and age, why is a loan something you barely can avoid?
In order to consume something, you need to purchase it. Some evil genius figured out the exact formula that calculates your income, anybody’s income, against the prices of everything and for some reasons not only you, but everybody including the richest of the rich, are short on cash. You could argue that the appetite for consumption increases with growing funds or that humans are basically incapable to curtail their consumerism. The result is invariably the same, any and all humans will at some point purchase stuff on credit and/or get a loan to finance the growing need or incurred debt. That loan can be in form of store credit, credit card use, real bank loan such as personal loan, short term loan such as logbook loan, or similar.
Do we need all the stuff?
Advertising will make us believe that we need everything. No matter what it is. Advertising is incredibly aggressive nowadays, finding its way even into our inner sanctum of our homes. Wherever you look, there will be something advertising a product or a service, whatever you watch on TV has product placement and a blatant display of fulfilling a need, purchasing a service or eating at some place that paid to be in that particular series or movie. Everything is about making you take your money and give it to someone else.
Where did our common sense go?
Would you believe that there are whole strategy sessions on how to circumvent the common sense and convince the public to purchase something they actually do not need? Take for example bottled water. There is a faucet in every home, arguably with drinkable water freely oozing out of it. Yes, there are places where you would not dare to drink that Ice-Tea looking something that is being pumped through the water pipes, but there are more places than you can imagine, where the tap water is better than the water sold in plastic bottles. Still, even in such places where tap water is considered safe for drinking, the bottled water business is booming – common sense successfully circumvented.
Having had your common sense surgically removed by advertising genius of some billion quid agency, you are ready to spend beyond your financial means and will consider enlarging your monetary grasp for the reason of getting that particular, but not really needed, yet properly advertised product or service. Loans are readily available wherever you go, in whatever form you can get approved for, without any actual common sense – again, this seems to be the mental illness of the 21st century. Come to think of it, there should be a warning light, when common sense seems disabled, some kind of a sensor alerting people to rethink what they are doing. It would probably essentially change the world.
Loans exist in order to provide people with money they do not have, or do not want to spend right now, or cannot free up to spend, or are unable to get their hands on, in order to spend them. Simply put, if you need cash to consume some service or purchase some product, but you cannot afford it, you get yourself a loan. Even more simply put, a loan is a vehicle to circumvent common sense and allow individuals to live beyond their means. For companies it is a necessary vehicle to function as a company, a company without loan is either belonging to the government, or not making any profits.