Each of us sometimes comes face to face with an expense that lacks funds. The wallet mercilessly shines empty, the bank account for nothing in the world does not want to show these few digits more than usual. Whether it’s buying your dream camera, fulfilling your dream of an all-inclusive vacation in warm countries or your first own car, the dilemma is always the same.
What to do? Borrow from family or friends? Take a loan for many years? Or maybe give up the purchase and still, for the next months, put every smallest amount into the piggy bank, because, as they say – a penny to a penny and there will be a milkshake? Each solution has its advantages. But it is definitely worth considering the issue of loans – it is a way that will ensure a flow of cash. But what do you need to know about traditional loans?
A fine (and not only!) Print
When signing a loan agreement, it is necessary to pay attention to a number of specific provisions and conditions. The content of the contract must be read very carefully, read all the provisions that later have a huge impact on the course of the commitment.
First of all, the total cost of loan repayment is extremely important – that is, the amount of commitment, plus a certain amount of interest. This is related to the issue of loan repayment dates – before making the final decision and signing, you should think about whether you will be able to repay the amount on the agreed date.
An element that is often quite incomprehensible to borrowers is a person who lives, also called a guarantor or guarantor. It is someone who takes the responsibility to repay the entire loan if the borrower, and thus signing the loan agreement, could not repay the entire amount himself.
The reasons can be different – insolvency, random events, in general, everything that causes that subsequent repayments will not go to the lender. The resident, also signing the contract, and thus supporting the loan, confirms that at the moment when the borrower stops paying the liability, this sad obligation will fall on him.
A responsibility to think about
The resident takes a huge responsibility – the greater, the higher the amount of the loan. He guarantees with his name and surname that the loan will be repaid, irrespective of the situation. It is based on trust in another person, but it must be a well-thought-out decision.
The guarantor must carefully examine his own abilities and decide whether, in the event of an unfortunate event or other fortuitous situation, he will really be able to take on the loan of a friend or family member. It is very easy to sign a document that results in a huge financial commitment that lasts for many years.
You must be aware that you cannot withdraw from a loan, and it is often difficult to get back the money you paid in on someone’s behalf. And this can cause a lot of trouble.
Before signing any document, both the borrower and the resident must look deeply into each other’s eyes and, after analyzing all pros and cons, conclude that they really have the means and possibilities to make such a commitment. The one who decides to take out a loan should first get acquainted with the possibilities offered by online loan organisms.
What does the law say about the surety?
Issues related to the surety are regulated by the Civil Code. According to it, the resident – by signing the relevant contract in writing – undertakes to perform the obligation to the creditor if it is not met by the debtor. The contract is valid even if it turns out that the debtor does not have legal capacity, which the guarantor knew or could easily have acquired. Then, however, the guarantor becomes the main debtor.
Importantly, the scope of the guarantor’s liability is determined by the extent of the debtor’s liability. If, after signing the surety agreement, the debtor performs further legal actions with the creditor.
By law, the guarantor is considered a joint and several joint debtors, so he is jointly and severally liable for the debts incurred. Even in the event of the debtor’s death, the resident will not be able to rely on the limitation of the heir’s liability under the law of succession – his obligation will be to settle his obligations.