“Doing the right thing isn’t always easy – in fact, sometimes it’s real hard – but just remember that doing the right thing is always right.” – David Cottrell, Business Author.
Many of us go through our lives doing the right thing regarding finances – abiding by rules, being responsible, and even respectful of what money represents.
Growing up, my grandfather always tried to instill in me the importance of financial responsibility.
His perspective was undoubtedly the result of the economic disparities he witnessed during The Great Depression and in the years that followed – forever cementing a mindset that few of us possess today to appreciate money, not take it for granted.
While some of us commit to financial freedom, making the necessary sacrifices to achieve that goal, others see money as a commodity that one can exploit.
My wife and I recently decided to renovate our outdated kitchen, an expense that can be eye-watering once you begin factoring in all the costs involved.
Still, we had no other debt to speak of and felt a home improvement loan would help lessen our stress, further build our credit, and could quickly be paid back in full in a few years to maintain that financial responsibility my grandfather spoke of.
But alas, doing the right thing doesn’t always come with privileges.
With excellent credit and zero debt, the bank told us that it was in our best interest that they don’t deposit the money in our account. Instead, we would have to send them invoices, and they would pay the contractor directly. It sounds pretty archaic, doesn’t it?
Further conversations with higher-ups in the company, including the vice president of consumer loans, finally revealed the issue.
It seems people were taking out this “home improvement loan” for its favorable interest rate and then using it to pay off their debts. Because that is not what the loan is intended for, the bank now requires everyone to provide an invoice in order to prove what the money is being used for (regardless of your financial standing). They in turn pay that invoice directly out of the loan account.
If this sounds discriminatory, you’d be right. Because of those unscrupulous individuals who take advantage of our financial system, hardworking and financially responsible individuals have to play by a set of rules underserving their economic history.
While I will continue to live a life of financial responsibility, it’s impossible not to be insulted over the dealings above. Where is the reward for doing the right thing? I mean, shouldn’t there be one for having no debt and high credit scores? For never filing for bankruptcy and paying off car loans and mortgages earlier than they are due? I’m genuinely beginning to wonder.