There is no denying that the economy is at its worst right now. It is almost impossible to make it from week to week without running out of money. This can be hard if you have a baby or young children in the home. When you need money for milk and food, it can become a scary situation. When there is no other way of getting the funds you need you may consider cash loans. However, you always want to be careful, because so many people end up in small claims courts over these loans. All you have to do is watch People’s Court or Judge Judy to see the problems associated with these loans.
To help keep you out of court and save you money and heartache in the future, we have a few tips to keep you safe.
The very first thing you will need to do is draw up a contract. This does not have to be anything fancy. Just how much you are borrowing and when the loan is to be paid off. Make sure that both parties sign the loan. This will make it a legally binding contract and is valid in court.
When creating the contract keep your budget in mind and do not try to pay off more than you possibly can. Keep the payments fair to both parties.
When making your payments, never use cash. It is best to pay with a money order or check each and every time. Always write a reminder on the payment that it was a loan payment. In addition, you will always want to ask for a receipt.
It does not matter whether you are borrowing from your mother or boss, these tips will help keep bothparites safe and there will never be a legal issue dealing with your cash loans.