Borrowing something is usual to us today; may it be an item such as books, clothes, tools or even money and as we borrow these, there are these certain rules we should follow before the lender gives us the item we wanted and also as we give it back to the owner.
5 Commandments in Borrowing Money
Speaking of rules in borrowing, here are commandments you should follow when borrowing money:
1. Thou Shall Not Borrow Beyond Your Means
You may be offered with a bigger loan by your lender than you intended loan amount but repaying a loan will take months or years thus you have to check whether you can afford the repayment of the loan.
Aside from your loan repayment, you still have your living costs and other monthly budgets and if you have huge monthly repayments, you will have a hard time paying all of these that is why making sure that you only applied for the right loan amount is a must if you want to avoid any financial issues in the future.
2. Thou Shall Not Borrow Frivolously
There are times when we are very eager to purchase things in the market like the newly released gadget that has been popular in the market today, or you want to attend a concert of your favorite artist, but you don’t have enough money to get what you want.
Loans involve monthly repayments, interest rates, and other application fees which are all liabilities that we have to pay for the next several months or even years thus ensuring that we borrowed money for the right reason is essential before getting any loan.
3. Thou Shall Not Pay Late
It may be normal that there are times when we are out of budget, and we can’t pay our loan on time, but we still have to do our best to cope up with our loan repayments and avoid further interest.
Interests are the main reason why a borrower is being bombarded by substantial monthly repayments and aside from it; late payments can be reflected on your credit history too which is not good for your next loans.
4. Thou Shall Not Compare Loans Carelessly
There are already a lot of lenders in Singapore today, and one of those is the licensed moneylenders from https://www.moneylenderreview.com/, and when comparing one moneylender to the other, we should check their offers and services carefully especially their interest rate and the fees they charge the borrowers.
Asking for a loan breakdown is a good idea so you can compare which one would help you save money and avoid any unexpected fees.
5. Thou Shall Not be Financially Pressured
Are you having financial difficulty and been thinking that a loan can solve your problem? You can avoid this kind of situation by having an emergency fund that you can grab whenever you are having any financial difficulty rather than getting a loan which is a bigger responsibility for you.
These may be simple commandments to follow when having a loan but these can surely help you in controlling your loans and avoid further financial stress.