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CREDIT IS HERE
One of the fall outs of the banking consolidation is that banks are awash with cash, and suddenly, banks have come to the realization that there is something called consumer credit.
Some years back, you needed to get the endorsement of your employer, landlord, local government chairman, township association and grandmother to be able to secure a car loan from a bank. Now banks are more than willing to give loans for anything under the sun, from owambe, school fees, home furnishing, and even shares! Very few banks will offer you a loan to buy shares.
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Suddenly, everyone is "shine shine bobo". Flats are humming with generators, sitting rooms lit with wide screen plasma TV, laptops and personal digital assistants (PDA) has now become a fashion accessory and compounds are adorned with "tear rubber" automobiles of different makes. The way the automobile sector is heading, one begins to feel that second hand car dealers will soon become fringe players in a market they once dominated.
Sellers of consumer good have never had it so good. Consumer spending fuelled by other people's money. Very soon, car dealers will soon join the fray. Soon, you may not need you bank to get a car loan. Financially sound car dealers will turn banks, and finance your purchase. Pay zero to 2o percent down, and off you zoom to the envy of your colleagues and neighbors. Since you do not need to save up to pay for it cash, you can now afford what you could only dream about some years ago.
Someone that could only afford 1995 model Honda Accord can now go for a spanking new "tear rubber" Rav4. Buy and now enjoy now, use future earnings to pay.
Credit, rightly used can be your best friend, and wrongly used, your worst enemy.
Using credit to buy liabilities, especially the depreciating variety is not common sense. Nobody said sense was common.
Imagine your dream lean mean driving machine, latest model Toyota Camry. The designers of that car should be sent to jail for designing temptation on wheels, especially the black model. Well that is my opinion. Cars should not be that sleek. It leads one into temptation.
Imagine you have a good job, and then decide you are due for change of car (as a matter of fact, you are the only one among your colleagues that has not "torn rubber", so you figure it is about time), so here you are at a car dealer's...
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