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BI | JuanHand Shares How to Be a Responsible Borrower in Online Loans | Dwindling financial resources are a growing concern for the ordinary Filipino family, especially after the impact of the pandemic on the Philippine economy. Even if we don’t want to make loans, these days it is really unavoidable. Thankfully, our options for financing through online loan apps are increasing.
Just the same, it is very important that we remember the things to keep in mind in being a responsible borrower. Here are key takeaways before you make that next loan:
- Understand the loan.
The first step to being a responsible borrower is to do your research. Study all the things about the loan you are going to enter. This is an important financial decision that will affect you for years to come, so invest the time it deserves.
- Review Your Finances.
Make sure you can repay the funds you intend to borrow. Make a plan and list the in and out of your money or cash flow. By organizing your or your family’s finances, you can check where you can save more or what steps you need to take to pay off financial obligations, including your personal loan.
- Don’t borrow more than you need.
Sometimes, we may need urgent cash, but don’t be tempted to take out a loan just to buy things that can wait.
Some reasons you will need immediate funds are utility bills (such as water or electricity), or unexpected emergencies such as illness or disaster. But if you can do something like getting a part-time job or a sideline to save, it’s better to prepare in advance because you can avoid higher fees due to loan interest.
- Pay on time.
When you start making payments on your loans, it is very important that you do so on time or before the loan payment deadline. Late charges or fines are not a fun way to spend money, and on top of that, poor payment history can negatively affect your credit.
Organize your personal finances with monthly bill payments, or better yet, set up automatic payments. This way, you can save even more on your interest rate. Often with online loan apps, the amount you can borrow increases even more if you pay your first loan early.
- If there is a problem, talk to your loan provider.
If you have a problem, it’s best if you talk to your loan provider. For example, if you find that you haven’t paid and already have penalties, ask if they can give you any help like refinancing to get you out of debt.
Taking immediate action to address the problem and communicating can give you the light to find ways to resolve your concerns.
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Due to the growing need for personal loans or financing options, online loan applications (OLA) have been increasingly providing various services in the Philippines.
JuanHand is one of the very good, fast, and reliable online loan apps. If you want to know more about the JuanHand service, find out here how to borrow funds with just your smartphone.
