Responsible behavior of debtor and creditor

The Loan Navigator aims to help borrowers by directing them to secure lenders. Another goal is to draw attention to the dangerous ones – but rather than to their names and names, they want to point to their practices, because there are thousands of such entities in our country and all of them are not, in principle, possible. for a critique

We want to bring information to the jungle of consumer loans that will enable people to quickly and easily find out where they really do not borrow and, on the contrary, help them navigate among trusted institutions.

Responsible behavior of debtor and creditor


The fact that people live on debt and are increasingly used to borrowing does not in itself be dangerous in terms of responsible and safe lending of money.

In general, however, it is recommended not to indulge in things that you do not necessarily need to live. While a mortgage or car loan is one of the better investments, vacation or gift loans are very risky and unnecessary. Debt, whatever the amount, is a serious obligation.

So what to watch out for and what to remember when lending money?

A prerequisite for a mutually beneficial credit relationship is a responsible lender, who lends money and returns it to the client under agreed conditions and informs him of the loan parameters and the terms of the contract.

On the other hand, should there be a debtor who understands this information and knows exactly what to expect after signing the contract? Basically, everyone must verify that they know their lender, understand all the parameters of the loan offered and can understand the consequences of repayment and non-repayment of the loan.

Responsible behavior of the debtor

Responsible behavior of the debtor

The underlying problem of most borrowers is that they perceive only the immediate benefit of the loan, but they cannot realize what the loan and its repayment will mean in the longer term.

Debt is a Commitment! Everyone should make sure that they are able to repay the loan and that it is not too burdensome for the budget before arranging the loan.

Most importantly, there are three basic rules that every consumer credit applicant should adhere to and be very honest with himself on these points.

Responsible behavior of the creditor

Responsible behavior of the creditor

It is still being said that those interested in the loan should behave responsibly, but it is forgotten that the other party must adhere to the rules and be aware of the consequences of their actions.

Responsible lending of money can be briefly defined as the lender’s willingness to lend to the debtor a level of money that does not over-indebt him. From the creditor’s point of view, it is possible to understand responsible lending in two main areas: correct assessment of the client’s creditworthiness and correct assessment of the suitability of the product for the given client.

The big danger is that some providers are willing to lend money without checking whether the client is already owing somewhere, has a steady income from which he can repay, and his regular expenses are not so high that he will no longer have to repay him, and whether will be able to repay the loan at all in the future.

On the other hand, there are loan intermediaries who are driven by large commissions and also do not care about a thorough evaluation of the client’s creditworthiness. Their primary objective is to conclude as many contracts as possible and thus obtain the highest commission, regardless of the situation to which they may be put by the debtor.

Some companies not only on the Czech market offer clients as an exclusive service the opportunity to conclude a contract at home. However, it should be pointed out that some lenders or their representatives do so to map the debtor’s property directly in the home. And when the customer ceases to repay these assets, the debtor can be confiscated in the distraint order. In practice, they are already aware that they are lending to a person who will not be able to repay the loan and are preparing for it. This behavior can be assessed as clearly irresponsible and serious.


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