How To Stay Safe When Borrowing Money

Budget Money For the Future

If you find yourself in a situation where you need to borrow money, it can be hard to know where to turn to. Whether you’re asking for a loan from a family member, or you’re visiting a loan company, there are steps to consider to ensure you and the money stay safe.

Put Everything In Writing

It may go without saying but putting everything in writing is very important. Just as you would with any other legal documentation, get the nitty gritty written down and plain for all to see. Document everything to do with borrowing money safely and effectively by keeping all of the pieces of paper filed away in an organized fashion, so should you have to read over the files again or in case of mishap they’re be readily available. Doing this will save you stress and worry should things start to falter. You can’t be too careful where money is concerned so be really careful about keeping documents safe. Write down and file any agreements discussed.

Investing With Family

Sometimes the easiest option when in need of borrowing money is to look toward those closest to you, and these people are usually your family members. Borrowing money from family can be the safest way, however, if it doesn’t go to plan, you’ve got the most to lose. Getting embroiled in a legal battle with family is terrible, and can quickly break apart family relationships and trust. From the onset, ensure that matters involving family are transparent and make your plans for repayment crystal clear. If you want to pay back your family over the course of a series of months, then again, make sure this is well documented with how much is expected to be paid back and when. Ensure everyone involved is on the same page otherwise you could find yourself wrapped up in an ugly legal battle.

Civil Complications

Unfortunately, there are times when wires get crossed, and payments fail to be made in a way that is satisfactory to the lender. Equity setups can fall through, and late payments and sums of a lesser value than the ones expected by the lender can see the borrower in hot water quickly. If you find yourself in this situation, and on either side of the fence as either the borrower or the lender, then it’s crucial to be aware of the options available to you. No one piece of advice suits all, that’s why it’s important to seek tailored help and the counsel of an experienced lawyer for all your answers and information on all your legal questions.

Get The Ball Rolling

If the issue of heated tension between family is familiar to you, then contact the people who know how to help you here! Humans are designed in such a way, both physically and emotionally, that makes the completion of tasks feel positive and rewarding, so afford this to yourself and begin to get the wheels in motion to sort your claim and get expert advice and legal solutions.

Personal Loans And Small Print

When taking out a personal loan, always check the small print to see if you’re eligible and for any warnings and precautions ready to catch you out. Money is business after all, and often the more technical elements and practicalities are written somewhere out of sight, as these are the parts that aren’t always so appealing, like interest rates. Before you make your final decision about where to take your loan out from, carry out all the research and reading you possibly can and scan the small print before going ahead.

Shop Around Before

It pays to be organized and to take the time looking around. Take time and care when browsing your options and avenues to go down in search of where to borrow money. Go to your bank and discuss options but also check online as there may be better loans and conditions to be found elsewhere. Under no circumstance should you consider taking out a loan with a loan shark or doorstep lenders, as doing so can put you in danger. Loan sharks are unlicensed moneylenders, and they charge very high interest rates, not to mention, they have a well-documented history of using violence and intimidation to get people to produce the money they’re owed.

Unforeseen Circumstances

Even if you’re currently in a place whereby you can afford the monthly payback installments, it doesn’t mean that you always will be. Life works in mysterious ways so take into account any unfortunate events and unforeseen circumstances. Make sure the loan you apply for isn’t an unmanageable amount and that you have something to fall back on. Once you’ve taken out a loan, try to be more careful with money and save money wherever you can. Borrow a feasible amount; an amount that you feel you can pay back in installments without it being too much of a worry.

Consider Early Repayment Charges

It’s possible that you will be able to pay off your debt ahead of schedule. Many loan providers apply a charge for doing this, however, so it’s essential you peruse the small print and conditions before you borrow money. If you believe there is a good chance you will be able to pay and settle your loan early then search for an offer that comes without any early repayment charges. It would be disheartening to finally find yourself in a financially stable enough position to pay back your loan, only to unearth that you’ll have to pay more money to free yourself of debt ahead of time.

Check Your Credit Rating

Always, always be sure to check your credit rating before applying for a loan from the bank. If you have a red mark against your name, for whatever reason, then applying and reapplying for a loan will only work to further stack red credits against you. The scary thing about this is that you may not even know there is a problem and each time you apply you’re damaging your chances of being successful. Be sure to run a check before applying so that you can iron out any problems with your credit rating before asking the bank for a loan, or extend your overdraft. You can check your credit rating online easily, and by doing so, you could save yourself time and complication.


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