In a world where we are being encouraged to spend, spend, spend
(even money we haven't worked for yet) we forget that everything we borrow
or buy
on credit
will have to be paid for eventually
. Most banking or credit customers keep their affairs in order - but there are still far too many who get caught in the debt trap. You can ask anyone who has been there, and they will tell you how difficult it is to get out of financial trouble once you are in it.
It is much easier, they will tell you, to stay out of trouble in the first place!
How to be a good customer in general
If you buy anything on credit, follow these rules:
- Make sure you really need the item. The test is to ask yourself: "Can I live without it?" And if the answer is "yes", think very carefully before buying the item.
- Make your repayments punctually and in full - on or before the due date.
- If you cannot afford the payment for any reason, write
to your creditor, explain the situation, include the amount that you can
pay, and undertake to catch up the next month.
- If you really are in trouble and you cannot afford your repayments, write to your creditor, explain the situation, and commit yourself to such smaller regular amounts as you can afford. As long as you keep to your promise, the creditor is not likely to take legal steps against you.
How to be a good bank customer
In the course of your career, your bank manager can become a very important person in your life. It is therefore worthwhile to keep your relationship with your bank sound and healthy - come what may!
- Keep to all the rules!
- Be honest with your bank. If your job status or salary changes, let them know.
- If you make a promise to your bank, confirm it in writing and fax or post it to them. A handwritten letter is fine.
- If you have an overdraft facility, treat it with care. Don't use it for unnecessary expenditure, and don't exceed the limit. How are you managing your overdraft is the bank's best way of finding out what kind of customer you are!