12 Questions To Ask Yourself Before Taking On A Loan
- By
Julia Austin
Source: Olemedia / Getty
Are there any penalties?
What happens if you’re late on a payment? Will you be charged a late fee? Does it go up the later you are? What if you have to defer? Will interest compound? Will you lose your loan if you default? How quickly? What if you want to pay your loan off early? Will there be an early termination fee? What happens if your check bounces? Is there a fee for that? If this is a long loan, anything can happen during the term of it. Think about how many people had to default on car payments, mortgages, and student loan payments because of COVID-19. If you have a loan that spans multiple decades, there will likely be bumps along that road. You don’t want terms that will hit you with huge fees.
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