PSYCHOLOGICAL IMPACT OF SOMEONE WHO IS ENTRED IN ONLINE LOANS

Abstract

ABSTRACT: The aim of this study is to explore the psychological impact on individuals involved in online loans. This research is qualitative in nature and is based on randomly selected online news articles that align with the research focus criteria, particularly concerning violations of online loans. These violations encompass debt collector behavior and their effects on the psychology of society. The findings of this study indicate that the emergence of borrowing behavior in online loans initially stems from urgent financial conditions requiring immediate cash. The ease and speed of online loans often offer a quick and straightforward application process, enabling individuals to access funds quickly without undergoing complex procedures typical of banks or traditional financial institutions. Additionally, the absence of collateral in online loans makes them more accessible to individuals lacking sufficient assets for collateral. In conclusion, despite providing quick and easy access to needed funds, detrimental practices such as high interest rates and aggressive debt collection pose serious threats to individuals' psychological well-being. Hence, stricter regulatory implementation, increased consumer awareness, and the provision of assistance to individuals trapped in online loans are necessary to address their psychological impacts.