The Importance of Repaying Social Lending Agreements

Social lending might seem like the Wild Wild West to some people, but that doesn’t mean that you have to feel that way for very long. Once you get integrated into a social lending community, you’ll actually see it for what it really is — a network of people helping each other meet their goals and dreams, even when traditional banks have failed them. When you focus on profits without thinking about the people that need the financing, a lot of cases tend to fall between the cracks. Wouldn’t it be better if you could actually break out of that traditional mold and get the financing that you need to actually get things done? That would be nice, right? Well, you can do that with social lending — even if you’ve got plans to play Euromillions online and win big! Just because you want to win the lottery in the future doesn’t mean that you ignore the present. Once you won big money you can just pay off your social lending agreement right away.

That’s right — we cannot stress the importance of repaying your social lending agreement. We know that it might seem obvious, especially when you have a defined sense of right and wrong. However, the global recession definitely taught people one thing — it’s perfectly okay to strategically default on things where repayment would be an issue. You don’t want to carry that attitude back with you to the world of social lending. It’s just going to end up making you upset, and who really wants to do that? You’re better off really making sure that you focus on the bigger picture, and that’s going to involve really thinking about the impact of not repaying the arrangement.

You see, social lending is all about trust in ways that the traditional world is not. There is an assumption that a certain amount of loans are going to come up into default status. That’s why you really owe it to yourself to try to still push forward and honor the original terms of your agreement — if you default, you’re not defaulting on some major bank that has millions of dollars to blow. You’re going to be defaulting on people that trusted you with money that they could have used to better their own lives. Do you really want to let those people down?

If there are circumstances in your life that mean that you have to get forbearance temporarily, reach out and get help right away — don’t just hide; that’s the worst thing that you can do!