Financial literacy is key—understanding loan terms before borrowing can prevent a lot of stress down the line
The problem with borrowers is they do that in times of need and they don't give that much time in reviewing what's in it in the contract.
That's why they become surprise with surcharges, hidden charges and the interest rates that they agree to pay after taking the loan. This is a big problem for them when they don't due diligence.
Whilst for the side of the loaners or loan sharks, they take advantage of those moments because they know borrowers who are in need of money are desperate to get it.
Unfortunately, most of the borrowers find themselves in a very awful position because they make their choices without going through the key provisions of the contract. Sudden pressures reduce their concern with the other factors such as the additional charges that may accrue later or even the rates of interest. However, based on this opportunity, lenders seek to avail quick cash with bearing rigid terms for the borrowers most of the time. Consequently, there is need to be more careful anytime we are getting a loan to ensure that other details are adjusted well without finding our selves in a worse off situation since some of them are hidden in the hidden print. Considering all these things properly in advance can help us prevent certain problems in the future.