Your Rights and Responsibilities When you Borrow Money

Borrowing money does not mean the money lender has full right to do anything to you in reference to the loan that you got from him. There are some payday loan instant cash lenders who tend to harass their clients just because they are a few days late on their payment or short in what was remitted. Even if you are the borrower, there are laws that can protect you from being unjustly harassed by anyone including those that you owe money to. Although you have rights there are also responsibilities that you need to strictly follow when borrowing money. Remember that a signed loan agreement by you is a promise to follow all the repayment terms and condition of that contract.

 

Let’s Understand What an Emergency Loan is

 

When we talk about the need for emergency loan, we usually go to a fast money lending institution such as a payday loan lender. Payday loan is a short term loan which usually has a term of 15 to 30 days maturity by which time the borrower must pay the principle amount plus interest in full. Payment is by lump sum cash or via a post dated check issued earlier by the borrower. If you are not able to pay back the whole amount in time, you can incur additional loan charges and interest for breaching the loan agreement. Paying the lender is your duty and responsibility while charging you with additional cost for late payment is the right of the lender.

 

 

 

Make Immediate Amendment with the Lender

 

In the event that you may have a problem paying off the debt, immediately inform the lender the situation. Most lenders are willing to listen to reason and he may even appreciate you telling him about the situation. The lenders’ responsibility is to always make it clear to the borrower of the terms and condition of the loan and it is the responsibility of the borrower to follow them. More importantly the borrower should be fully informed of the charges and penalties that would be incurred if he or she is not able to pay back the loan in time.