Borrowing is a rather tricky matter, whether you’re dealing with a lending company or a friend (trickier still is when you deal with family). It’s saddening that some people take this lightly, especially when they deal with a family member or a friend. This means their mutual agreement puts trust at stake.
Before you borrow anything from anyone, you ought to know the responsibilities that go with the act. They may appear simple, but remember, one blunder you commit may tarnish your reputation. Here at Utah Money Center, we value trust, which is why we offer some tips to help you understand the ins and outs of lending. Here are some ethical responsibilities you need to keep in mind:
Understand the Agreement
Going over the agreement won’t only spare you from certain legal repercussions, but it’s also a sign of your respect to your lender. This is especially true if you’re dealing with a friend or family member; your complete understanding of the agreement will spare your relationship from troubles.
If you’ve disclosed your financial woes to your friends or family members and they’ve agreed to help you, avoid negotiating for more money. Don’t attempt to ask for a lower interest rate. Be grateful enough that someone has offered a helping hand.
Communication is crucial, as staying in touch with your lender gives him assurance. Otherwise, you’d give him an impression that you’re trying to avoid him. Notify your lender if you’re paying earlier or later than the due date.
Collate Your Documents
Your documents are as important as your word to make a payment on time. Agreements, statements of accounts, and other legal paperwork should be submitted to keep everything formal.
Pay Early if You Can
If your finances and resources permit it, pay off your loan earlier than the date agreed upon. Doing this will give your lender an impression that you’re a responsible borrower.
Borrowing money is always a tricky business. If you’re looking for a lender with reasonable conditions, you can count on us. Browse our other pages to see our loan options.