Why Do People Take Loans?

Corporates and individuals take loans on a day to day basis for various purposes. According to recent research, more than 50 percent of individuals spend slightly more than what they earn. This, therefore, leaves them in a precarious position since they need to bridge that gap.

One of how they bridge the gap is by taking loans. The loans can, therefore, be categorized into two: business and personal loans. This article looks at the various reasons as to why people take loans.

Establish their business

To begin any business, you require capital. In most cases, the capital is usually a huge sum of money, which not many people can afford. This is the reason why people take loans to enable them to set their businesses. Both individuals and businesses can borrow money to establish their businesses or to expand.

Taking a loan to either establish or expand a given business is one of the primary reasons as to why people take loans.

Debt consolidation

When you have more than one debt, you can combine them into one and pay a higher interest rate but for have the payment period spread over a longer duration. Consolidating the various debts into one makes the process of paying the loans easier.

Before you are allowed to consolidate your loans, you might be required to pay a significant sum of money. Many people may, therefore, decide to take a loan to consolidate their existing loans.

Paying for school fees

One of the most popular reasons as to why people take loans is to help them pay their school dues. The cost of education, especially the higher education is high in many countries, and not many parents can afford to pay the school fees for their children.

Since education is one of the fundamental rights and one of the ways of empowering a community, many parents usually resort to taking loans to pay for their children. The working classes who also decide to further their education usually apply for loans.

Build a house

loans for houseBuilding a house whether rental or personal is costly. Very few people can build houses from their monthly salaries. One of the most popular methods that people use is taking loans or saving from their monthly salary.

If you want to build a house and do not have enough money, you can apply for a loan and build your house. This also applies to another aspect of real estate like buying land. Watch the video below on why people take loans:

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Bailiffs

Different Types of Bailiffs

We have different categories of bailiffs, and they differ depending on the types of debts. You should not confuse between the bailiffs and the debt collector. The debt collectors are people who are employed in private companies for debt collection while a bailiff is authorized so that he or she can collect a debt on behalf of a particular creditor. They can seize someone’s power in case of failure to pay a debt and sell the goods to a public auction. Different bailiffs have different powers in the industry.

Enforcement agents

Enforcement AgentsThis is the most common category of bailiffs. They were previously known as certified bailiffs. The work of this enforcement agent is to take goods of a debtor who has failed to pay his or her debt and sell them to repay the debt. These agents are considered as representative of the court though they are not the officer of the court.

Private companies always employ these agents, and they usually act legally on a warrant from the court for debts. Therefore, their conduct is certified and controlled by the court. A certified bailiff always renews his or her certificate after two years.

High court enforcement officers

These types of bailiffs are also called civilian enforcement officers. The high court magistrate employs them. They are a high standard type of bailiff because they can manipulate or execute a number or warrants. These warrants may include the arrest warrant and the distress warrants. They work as private sector bailiffs; they usually are appointed so that they can enforce the high court orders and the county court order that a creditor wants to transfer to a high court to be enforced

County court bailiffs

County Bailiffs The county court employs these civil servants. Their work is to enforce court orders at the county level. They also enforce rules that have been made at tribunals that have been transferred to the county court by a creditor to be enforced. You might ask, can bailiffs enter your home? Of course, they can.  These officers have the capability to seize someone’s good and sell them to repay the amount of the debt.

In conclusion, these bailiffs are candidates who are certified by the high court or the county court to enforce given orders. Any private company can hire the bailiffs, but the court controls their work and decisions. Their appointment is from the court, and the rules governing the bailiffs are usually set in the high court or the county court.…

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