If you are unable to get approved for a traditional loan or simply do not want to go through the hassles, cash loans may be a much better alternative. However, there have been many friendships and families broken up over these specific loans. It is important that you follow a procedure to help keep everyone safe and happy. If you follow the tips we have below, you will never find yourself in court over a cash loan discrepancy.
Get Everything In Writing
One of the most important things you can do is to get and keep everything in writing. If you come to an agreement with someone about a cash loan, it is imperative to create a contract. The contract should state how much the loan is for, when payments are due, as well as the length of the loan. In addition, if there is to be any finance charge, fees, or interest, these should also be included in the contract.
Create Realistic Payments
many times when someone is trying to get a cash loan off someone they know, they offer too high of expectations as to how much they can pay as well when it will be paid off. Do not make things harder on you than they need to be. Create a budget and see how much you can actually afford to pay on a weekly or monthly basis. It is better to set a lower amount and be able to pay the payments on time.
Finally, when talking about cash loans, always make sure you keep a copy of everything. This includes the contract, payments you have made, as well as any receipts. While you may not anticipate any problems it is much better to be safe than sorry!