Do you know what you are signing?

By Nashwa Beheiry
Digital Banking Expert

Despite our financial status, we might need to borrow money at some point in our lives. It could be for buying a house or a car, paying school fees or coping with an emergency such as medical expenses, or establishing a business.

Women tend to bear the burden of managing household spending. Some may borrow money without understanding the consequences of their actions. Moreover, family members may take advantage of their relatives by making them sign checks or loan contracts under their name or engage in other forms of financial exploitation.

Parents in Jordan tend to provide less financial education and assistance to their daughters. That’s why we see high numbers of women in debt, unable to fulfil financial obligations on their shoulders and facing the threat of being sued.

It is crucial to understand that by placing your signature on checks, bills, contracts, agreements, or any document, you are binding yourself to the terms of that document and you will face severe legal consequences.

Types of agreements

• Borrowing money from individuals, relatives, friends, neighbours (by signing a bill or a check)

• Contracts with financial institutions, such as banks and licensed financial organisations, credit cards issuers

• Deferred payments to suppliers (creditors) Contracts with non-governmental organisations (NGOs)

• Rent contracts with landlords

• Utility provider agreements such as mobile phones, Internet, etc... 

Tips before signing contracts or agreements

• Making sure you fully understand all details before signing

• Keeping a copy of every document you sign The contract must not have any unfilled blank spaces; if it does, cross them off

• It is your right to take a contract home for more careful reading or to get a legal or an expert opinion

• Never signing anything under the pressure of anyone, a salesperson, a friend or even a relative; take your time to understand what you are committing yourself to

• Asking yourself, can you afford the rent or the instalments? 

• If you are buying a house or a car, will you be able to sell it if you had to and cover your outstanding loan balance

• Some contracts tend to commit for a certain period with strict cancellation conditions, such as bank loans, gym memberships, or mobile phone plan contracts

• Ensuring everything you agreed upon verbally is stated clearly in the contract. This is especially important for terms like interest rates, down payments, discounts, fees and penalties

In a nutshell, read, understand, analyse and seek help if necessary before you put your signature on anything. Above all, educate your children, specifically your daughters, with financial literacy to prevent them from falling into financial problems.

Reprinted with permission from Family Flavours magazine