7 Borrowing Tips At The Time Of Pandemic
Millions of people around the world were heavily affected by the coronavirus pandemic. In the Philippines, millions of people lost their jobs as companies were forced to either reduce workforce or permanently close their stores to minimize further losses.
Unfortunately, the financial aid from the government is not enough to sustain you and your family for the next six months.
What do you do? Well, there is a tendency to borrow money, especially when you need it immediately. Since friends and family are out of the option because they need money as well, you turn to online cash lenders to help you in times of need.
Before you hit the Apply button, here are some of the tips and things you need to remember:
Tip No. 1: Do your research.
The truth is there are more than a dozen of online cash lenders in the market. There’s Tala Philippines, Loan Ranger, BillEase, Cashalo, and the list goes on. However, each lender offers something different in the market.
That being said, make sure to explore your options first. Interest rate, loan amount, loan term, and penalty fees differ per lender, so make sure you check on these factors.
Tip No. 2: Know thy lender.
Now that you know your options, it’s time to get to know the lenders a little bit better.
Online Cash Loans also look into different online cash lenders, including reviews from customers. Simply type the name of your preferred lender on the Search bar. Or you can also check their website and social media pages. This will give you an idea on what type of lender your preferred company is and help you decide whether or not they can be helpful.
Tip No. 3: Stick to the amount you need.
It’s tempting to borrow the maximum amount especially during this time of pandemic. You will need all the funds you could get in order to survive.
Still, keep in mind that this is loan and there is an interest fee you have to pay on top of the borrowed amount. If you are unable to pay, then you will have to worry about penalty fee as well, which is usually computed per day of delay.
Therefore, only borrow what you need. This way, you won’t end up in debt, which could be a bigger problem.
Tip No. 4: Focus on the essentials.
Now that your loan is approved, don’t use it for things that are unnecessary. Buy what you need or better yet, grow your money. Use it to start a small business or consider investing it in stocks. It’s a good time to buy now since stock prices are more affordable compared to last year.
Tip No. 5: Always use the loan calculator.
Online cash lenders have loan calculators in their website or app. Take advantage of this. This will give you an idea on how much you can pay every month, interest included, depending on your chosen loan term.
Tip No. 6: Prepare your documents.
Online cash lenders are more lenient compared to banks. Still, this doesn’t mean that you won’t submit any proof of your identity or capacity to pay.
Before you hit the Apply button, make sure you have the needed documents such as government-issued ID, proof of billing (to verify your address), and payslip (some require, some don’t).
Tip No. 7: Avoid loan sharks, at all cost.
No matter how tempting, avoid borrowing from loan sharks (popularly known as 5-6). They prey more on those vulnerable, which is why you need to keep your guard up. If you’re not careful, you’ll end up swimming in debt more because of sky-high interest, which is not ideal at a situation like this.
It’s okay to borrow as long as you use it wisely. At this point, focus on what you and your family need first and your wants must come in later.