Top 5 reasons to review your loans periodically

Reviewing things like loans can alert you to any potential issues.

12:13 20 May 2013

Looking over our loans may not be nearly as exciting as the realization that the Godwine Charter is probably the last complete text in Old English to come up for sale on the open market, but it’s definitely good to remember the importance of our own personal documents.

 

We probably won’t be lucky enough to sell old copies of our loan agreements at a market, but there are other reasons to hang onto those records.

 

• Disputes—you may never need to worry about the amount you have paid on any of your loans, but if a dispute ever did arise, one of the easiest ways to rectify the issue is to consult the records of your loans and payments.

 

• Unauthorized charges—certain types of loans, such as credit card loans, are particularly at risk of unauthorized charges. Technology has made it very easy for people to obtain card information and use it to purchase things. You can consult a paper record or electronic, but doing this on a regular basis helps alert you to any unusual activity so you can address it at once.

 

• Taxes—you may need certain documents for loans on vehicles and properties for tax purposes. It is always better to be prepared with documentation, than to be caught without it.

 

• Inheritance tax—this is similar to the above, but more specific. You will make things much easier on yourself and on your beneficiaries if you have your documents sorted, properly labelled, and recorded.

 

• Budgeting—sometimes reviewing your documents helps you with realizing ways you can improve your budget, or may highlight an interest rate which could be lower. You can use the opportunity to seek better deals on your loans.

 

Many people use only electronic copies of statements and while they are usually accepted, it is sometimes easier, especially when transferring records to others, to have paper copies of documents such as loans.