Do you have concerns about borrowing money?

Borrowing money is an ABSOLUTE necessity for anyone wanting to get ahead in life.  Let’s face it.  Without borrowing money the majority of us Australians could not buy a home, educate our kids or even buy the car we need to get around.

Now borrowing money can be one of the best or worst decisions of your life…

And here’s why… It’s called BUYER BEWARE!

Let’s talk about the banks and the role they play in your life… Now Banks have been around for thousands of years… In the olden days they called them “Money Lenders”.  Banks and Money Lenders are in the business of making money.  Make no mistake about it.  They are the oldest and wisest institutions of all.  And they don’t like to lose money, EVER.

Now days though, they use advertising and set up their local branches to look and feel like they are your trusted friend.  Heck, they even now have extended trading hours and TV’s in their branches.

Now there’s nothing wrong with providing good service.  But you should understand what banks are all about before you consider taking out a loan, credit card or insurance with them.

And it’s this… “The purpose of a bank is to make money by writing good loans”.

Now as banks have been around for such a long time, they have learned a trick or two before lending you their money.  Over time they have learned and refined what determines “writing a good loan”.  It’s called “Lending Policy” backed up with “terms and conditions”.

With their lending policy, they like to fit everyone into their little check boxes so they don’t lose money by writing bad loans.  But here’s the real gem (that most people are unaware of)… if they write you a loan they include a “fail safe” position in their terms and conditions.  And this is what you need to watch out for…

It’s what most people call the fine print.  And you need to BEWARE the fine print!!!

In the fine print banks can stitch you up pretty good with clauses like “all moneys” clauses, “fixed and floating charges” clauses, “bill of sale clauses” and “personal guarantees” etc.

(note to glossary page in the future)

Now all banks protect their position with these “terms and conditions” so you can’t avoid them.  What you can do though is structure your loans and finance in a certain way that protects you and your money as best as possible.  To find out how we can help email us at help@financialbalance.com.au

To further help you our website is filled with information, articles and tips so you can succeed financially.   From the whole Financial Balance team, thanks for visiting our site