Hi there,

I have just come out of a pretty scary financial situation and I want to share with you all a few tips that people who is in a similar situation should have a look at if they are considering taking out a small loan to help them with their finances.

You have to be realistic:

Never borrow more than you can afford to pay back each month. Alot of people fall into this trap and it is very important that you calculate how much you can afford to pay back! Otherwise you will have more out-goings than in comings!
Never apply for more than one loan at a time.
If you can afford to pay back a loan over a short period do so. You’ll pay far less interest. So keep this in mind!

ALWAYS read the small print

Always check the small print of any loan or financial agreement for additional charges such as a penalty fee for early repayment of the loan. When I took out my first loan, I failed to read the small print printed at the very end of my contract, and because I didn't read it..I ended up paying additional charges that I was not aware of.

ALWAYS be prepared:

If you fall ill or lose your job you’ll still need to repay your loan, so consider taking out loan insurance to cover your payments. Phoning your loan company on a regular basis to keep them updated on your financial situation will tell them that you are not trying to avoid repayments...Regular contact with them means more help for you!

Don’t bury your head in the sand:

If you have problems with repaying your loan always contact your lender as soon as possible. If you’re up front about problems they’re more likely to be more helpful and suggest various other ways of paying back your loan

Please remember if you default on payments for an unsecured loan you could end up being credit blacklisted, which could affect your application for a mortgage or credit card in the future.

I hope these loan tips help!

Damien