Sometimes you make many mistakes when he begins to borrow money because many times one is surprised at how easy it is to lend money and obviously the fun of spending the money.
One forgets that the banks or financial lend us money like any other business need to sell and try to place their loans without thinking or trying to show how dangerous it is to take loans without any control (please read our article 10 Things Your Bank does not tell you.
In the Boston Globe website and find Bankrate advice about 10 things you should do or not do when lending money.
Below is a summary of that list:
1. Save while you’re doing the repayment of its debt. Many times you just concentrate on paying the debts you have and forget to keep in its proposed budget saving of his money as an emergency fund. Experts recommend having an equivalent 6 to 8 months of living expenses saved.
2. Find the best rate. Before taking a loan carefully research the best interest rate between banks or financial offer. Do not take a loan to any company, tell them how much research and even offers face each other in order to make them compete and perhaps offered special rates.
3. Read the fine print. Be sure to read the fine print or those boring pre-printed sheets, may have no opportunity to negotiate these conditions but it is important that you know exactly what it is compelling. If you do not understand ask your lawyer.
4. Pay your loan on time. The pay on time is important for your credit record but more importantly keep you from paying higher rates for delay. Do not, is the worst thing you can do as well in the future it may only qualify for loans with an interest rate higher than usual due to their failure.
5. Remember that borrowing money is not free. This seems obvious, but as we said at the beginning of a crazy with the extra money easily and loses consciousness that costs money and you are paying a premium for borrowing money which can sometimes be a burden very heavy.
6. Do not pay for frivolities. There are good debts and bad debts you can not be paying money for frivolities like paying lunches or nights out (we recommend reading our article Good Debt and Bad Debt, Earn money by borrowing ).
7. Do not be a victim of bad financial products. As we said banks and finance companies are interested in placing their products and like any other business there are good and bad products, so be careful not to fall victim to bad products where you might miss more money than you earn.
8. Does not lend money without telling your spouse or partner. If you live with someone of debt is a problem because the couple can bring many difficulties in the future. Both must say whether or not to take a loan to both make the effort then to pay. Never leave your partner’s side in matters of money and debt loans (see our article Money and Marriage, 7 Tips for being happy in your marriage ).
9. Have a plan to repay their credit cards. One must try to pay your debts as quickly as possible and the most expensive debts must be paid before. Many times you do not have a plan to pay credit card debt becomes infinite. You must have a plan to eliminate the total debts of credit cards.
10. Do not pay more money than they can afford. This seems too obvious, but unfortunately it is not. One ends up unwittingly paying more money than they can afford, avoid doing so. Remember further that the budget should be scope for savings. The only way to know if you are doing well or doing bad things is a personal budget, do it today.
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