Sharing Corner: Loan Mistakes to Learn From
Mistakes happen. It’s part of life. However, there are things that you can learn from other’s experiences. This applies to life in general and one aspect of this is when it comes finances. With that said, here are some situations based from real life experiences and the key takeaways to learn:
- The Foiled Plans
With the emergence of microloans and online financial services, you become excited and convinced you’ll get approved that you’ve already worked your budget plans for the holidays around it. However, your application gets denied because of certain documents that are lacking.
Aside from always having a backup plan, it is vital to always check and double check the requirements before applying. It is easy to be confused especially since these qualifications differ from one platform to another so research well and don’t be afraid to ask!
- Mr. and Ms. Forget-Me-Not
You have the tendency to “forget” and miss deadlines so months later, you find yourself still paying your dues. Turns out, your interest and penalties had already piled up, doubling the initial amount that you have borrowed.
The hardest part of having a loan is paying it back so you must be extra cautious of your payment terms. Make sure that you are ready to return what you’ve borrowed within the agreed time duration!
- Sign Now, Pay Later Technique
You need emergency money - fast! So what you do is to take up the first loan that is offered to you. Turns out, you’ve signed on to something with various fine prints and extra clauses like additional fees and charges per transaction, among other legal things you don’t really understand.
To avoid messy situations like this, it is necessary to understand every term and condition before signing anything or else, be stuck with a loan with an interest that is higher than what you’re actually prepared to pay for! In the first place, do not rush into signing up without considering other options that will suit you better.
Trial and error works for many things but when finance is involved, it’s better to be sure. At the end of the day, the important thing is that we learn and continue to grow. Make sure to bring this knowledge along and share it with others for them to be more aware of the things that they will do in the future – as well as its consequences.