IN the 1930s, an elderly Tonto tells a young boy the tale of John Reid, the Lone Ranger, who departs on his white stallion, Silver, and would shout, “Hi-Yo, Silver! Away!”
The Lone Ranger is so named because the character is the last survivor of a group of Texas Rangers. An idealistic lawyer, he rides with his brother and fellow Texas Rangers pursuing the notorious Butch Cavendish. Ambushed by the outlaw and left for dead, Reid is rescued by the renegade Comanche, Tonto, and offers to help him bring Cavendish to justice. Becoming a reluctant masked rider with a seemingly incomprehensible partner, Reid pursues the criminal against all obstacles. However, John and Tonto learn that Cavendish is only part of a far greater injustice and the pair must fight it in an adventure that would make them a legend.
In the present day, there are a lot of rangers who are going after people from the middle class. One of them can be seen on the road, especially along Ayala Avenue, Makati City, passing out flyers to passersby. Some rangers stay in the office and hunt down people using the power of technology. Another one can be seen in the malls encouraging people to get their product that come with a gift such as umbrella. I am not stranger to this as I often oblige just to get their freebies. These rangers are so good in convincing their targets that if one is not careful, he runs the risk of falling into the debt trap.
These rangers are what we all the “Loan Rangers.” Their job is to get people to agree to the idea of what they are offering. The first kind offers quick cash loan even without collateral. If one is in dire need of money, he will not think twice in availing of that offer.
The second one is the credit card offer that, upon approval, will mean instant money that can be withdrawn anytime. This is a great convenience, especially during time of need. However, convenience has a price.
If mismanaged, the temporary convenience will become a source of unnecessary stress coming from the building up of interest charges. The temporary joy of getting easy money will be replaced by anxiety and worry.
Not only that, another set of ranger will haunt him. This time around it will be from the collecting department who will use harassment in order to have the borrower pay up. I have often encountered people who are deep in credit card debt who are often sought by credit card companies for their growing outstanding debt. They will often blame credit card companies for their misery but, in reality, it is their wrong behavior that has led them to their present predicament.
Please allow me to share some techniques whenever these loan rangers communicate with me:
1. Decline the offer. This is the best way to prevent going into debt. Since this is an offer that will definitely take away money from your pocket, politely decline the offer. I always use a joke to ward them off. I tell them that I always have “asthma” when I receive such offers. When they ask me to elaborate, I smilingly tell them that I have to “ask my [asthma] wife.” This is only an alibi but it works for me.
2. Make a counter-offer. Since I am in the field of sales, what I do when I am being offered is to gradually shift the topic and turn the table around. I will be the one making an offer to the point that the sales agent will try his best to end his conversation with you. I used the Golden Rule “Do unto others what you would like others do unto you” to scare them away.
3. Accept the offer. If all else fail, just accept the offer and do not use it. Many times I was offered credit card and when I run out of reasons, I accept the offer but make it a point to keep the card away from me. Out of my 15 credit cards, I only use 2 (one for personal use and one for corporate use). Credit cards are handy, especially in times of emergencies. Just do not abuse it.
Instead of being the target of the loan rangers in getting our money, one must try his best to be a lone ranger in looking for people or group who can help in improving his finances just like I experienced in the past. Having learned personal finance a decade ago, I decided to become a lone ranger who runs after knowledgeable people and group to learn more.
Are you hunted by the loan ranger or are you a lone ranger?
Edmund Lao is a registered financial planner of RFP Philippines. To learn more about personal-financial planning, attend the 100th RFP program this March 2023. To inquire, e-mail info@rfp.ph or text <name><e-mail> <RFP> at 0917-6248110.