Are you thinking about borrowing some money? Here are the 10 Commandments of borrowing money, according to Crester Credit:
1- Thou shalt have friends and families support
Okay, so life can be a tad tricky! Whether you need beneficiary loans, bond loans, debt consolidation loans, personal loans or are looking to make an alternate finance decision, you need your family and friends’ support.
2- Thou shalt have proper reason to borrow
What’s going on in life? Put it to paper. Do you really need to borrow? Okay, if your car is down and out and you need transport then get help. If you need a business equipment loan then go for it. Debt consolidation loans are always a great stress reliever.
3- Thou shalt not become a slave to money
Do you really need it? Or are you a slave? Money comes and goes – try another way before borrowing. Have a purpose for your borrowings, not just being in physical possession of more money.
4- Thou shalt go in with eyes wide open
Learn and understand what will take place during the loan period. Interest rates, fees, terms and conditions, security all matter when taking a loan. Use Google… Google is your friend. It is important that you completely understand what you are signing up for.
5- Honour your payment plan and requirements
Maintaining a solid relationship with your finance company is crucial for any potential loans you may need in the future. If you honour your payment plan and communicate with your finance company should you have difficulties, life becomes a lot easier down the track.
6- Thou shalt not steal
Borrowing money without the intention to pay it back is theft and is considered a serious offence in New Zealand.
7- Thou shalt not commit fraud
This is an obvious one as it is against the law… But why? Do you think this is to protect the company or you? Both really. Fraud can land you anywhere up to 10 years imprisonment, and cause hardship for genuine finance companies trying to help.
8- Thou shalt not lie to your lender
There is no point in falsifying your paper work to borrow money you can’t afford. An honourable finance company won’t want to lend to you if it is actually going to land you in greater hardship down the track.
9- Thou shalt read the terms and conditions
This is to protect you! Read and understand the terms and conditions of your lending criteria to protect yourself well in to the future of the loan period.
10- Thou shalt not covet
What do you really need? What does your family need? Don’t try to keep up with the Joneses. What’s really important to you and your family? Once you address these questions, it should clarify what you need to do.