Well, we are now going to see the introduction of automatic Loan Dispensing Machines (LDM’s)!  As there is open discussion about the fact that the use of Automatic Teller Machines (ATM’s) are in decline and the younger generations find alternate means (commonly smart phone s and the like) to pay for things, then the old beasties may well get a new lease of life as LDM’s?

These machines are capable of providing a loan generally between $50 to $1,000 to the borrower who simply inserts some personal details and a valid bank account number and, voila, in a matter of moments the applicant has the cash.  It appears that whilst they are only in their infancy they are proving popular; but with whom?

It is amazing to continue to watch societies thirst for credit continue to surge, when you add this to the fact that 12 month bankruptcies are imminent, then one can easily get the feeling that there seems to be a real notion from somewhere to keep as many people as possible up to their armpits in debt.  No doubt not to the extent that they need to go bankrupt but at least to the point that everyone is paying as much in monthly interest as their income level allows.  If they tip over, sobeit, get them through it and back onto the bandwagon but at a higher interest rate!

One thing I’m sure that these machines are not going to do is ask – “do you really need to do this now?”  Something that a responsible lending officer just may well ask.  I know it’s certainly a question that many a Debt Counsellor does ask as they attempt to clean up little problems that those on very low incomes seem to get caught up in.

It will be very interesting to see how far these machines actually go?  Maybe one day we just might see people standing at the wall of the bank applying for their housing loans; answer some questions, feed in some paperwork, attach other stuff from your smart phone and await the automated response!

Technology can be wonderful, can’t it.