Think Twice Before Get The A Loan

                                                       Think Twice Before Get The A Loan

Budget your money - Provide your monthly spending plan when you meet with creditors. It will help them make a responsible decision.

Shop, Shop, Shop - Compare the costs of credit from different creditors. Shop for credit like you would shop for anything else.

Beware of “now or never” offers - If it’s a good deal, it will probably still be there after you’ve had time to think about it. Don’t be pressured into making a quick decision

Ask questions - Don’t sign on the line until all your questions have been answered.

Read the contract - Don’t sign a contract that you don’t understand or has any blanks. (Asigned contract with blanks can be completed as anyone wishes and it will be legally binding.)

Keep your contract in a safe place - It’s important to keep all paperwork relating to your credit obligations. If questions come up later, you’ll have your agreement in writing.

Make your payments on time and in full - This is one of the best ways to build a good credit history. Repeated late payments will trigger late payment fees, and hurt your credit report, which will make it difficult to obtain future credit.

Love and loans

Has a family member or friend ever asked you to be a ‘co-borrower’ or
guarantee a loan for them? Before you agree, think carefully about whether
you will personally benefit from the loan and what you might lose.
As a guarantor or co-borrower, you will be responsible for the whole debt,
not just your share, if the other person cannot or will not make repayments.
If your guarantee is secured against assets like your home or a car, you may
end up losing them if you can’t pay out the loan you’ve guaranteed.
Never allow a family member to force you into signing anything against
your will. If a large amount of money is involved, talk with a lawyer or get
free legal advice to make sure you understand the risks you are taking on.
If you’re feeling pressured, see a free financial counselor or go to your local

Financial difficulty

People in financial difficulty often end up with high-cost loans or
credit. They might not be eligible for other loans, or know what else
is available.If you need money in a hurry, you could be tempted by advertisements
offering quick cash loans. These loans are also called payday loans or small amount loans. Know what you’re getting into before you go ahead. Use
MoneySmart’s payday loans calculator to see what this type of
loan will really cost you. Shop around as you would for anything else:
you might find a better deal elsewhere. If you’re thinking about a small amount loan, talk to a financial counsellor first. You may be eligible for a no or low-interest loan