Borrowing money today has become easier than ever. At every turn one can find advertisements and leaflets with the words “I borrow money “, “I borrow money in cash”, “I borrow money without a pledge” … Borrowing money has become like exchanging any other goods. The demand seems to exceed the supply that credit houses have recognized. They have designed a full range of products that meet a wide variety of market demands and requirements.
But accordingly, the black market has evolved, so you can find “I borrow money ” signboards at every turn.
Money is usually borrowed without any legal basis, which means that the loan agreements do not exist, and the agreed amount is paid directly into your hands. At a rapid pace, everything goes by, and it is only later that people realize all the possible consequences. Fake ads are all around us, you just have to train your eye well enough to recognize them on time.
Before borrowing any money, it is recommended that you investigate and verify the legitimacy of the loan company. This is the only way to know who you are dealing with and under what conditions. It is important to know how to protect yourself and keep your head cool in gear.
What should I look out for?
When borrowing money, it is important to keep yourself informed. Often banks have a disproportion between the offers being advertised and those in the outlets. Most often, these offers are short-lived or time-limited, so the terms of the loan may be different from what you envisioned. It is recommended to request written offers from which the terms of the loan are clearly visible. This is the only way to avoid inconvenience.
Equally, one must inquire whether borrowing from banks or lending companies requires a variety of security instruments such as guarantors, co-debtors, real estate or real estate pledges and the like. Being well informed saves money and gives you better control over money.
What is the situation on the other hand?
I borrow money – which is when you find yourself on the other side and you are the one who lends money to someone. Even when it comes to family and friends, the situation is far from ideal. Lending money changes the dynamics of relationships, however many claim to the contrary. If money is wasted or not returned at agreed intervals, it can certainly shake the most stable relationship.
Therefore, it is best to treat borrowing money with your loved ones as any other type of business collaboration. It is advisable to draw up a contract that formalizes the terms of the loan, which includes the amount, repayment period, interest rate if agreed and the like. This reduces the possibility of any fraud and protects both sides at the same time.