With the prospects of economic come back in the year 2010, the financial clients are awaiting the period with zeal. It is likely that due to the preceding harsh times they have undergone and some are thirst to borrow. Unemployment and reduced business turnovers have lead to clients being barred from acquiring loans. Many clients will be tempted to rush for loans but this could be untimely and detrimental to their financial stability especially in the first stage of the recovery. There are a number of factors that borrowers need to have in mind. These range from over borrowing, multiple borrowing, slow recoveries, competing financial companies and unstable loan rates among others.

Over borrowing
From the economic tension and clients have stopped their projects and would want to revive them as soon as the economy improves. As the clients move to acquire loans they may be tempted to borrow much than they can cope up with in repaying. The growth is expected to be slow and incomes will remain constrained for some months before a noticeable effect can be felt by borrowers. The multiplier effect will take time before it shows itself to the individual incomes and business returns. Therefore the borrowers should obtain sizeable loans that are convenient to pay.

Multiple borrowing
Taking numerous loans in the beginning of recovery is unhealthy. The recovery is Young and weak and hence the stability of the financial clients. Acquiring many loans will put the borrowers in monthly financial constraints and this may result to loan delinquencies and possible collateral lose. This will put pressure ON the little income being obtained the clients will be in dire stress as this may lead to inability to repay the loan prompting collateral auctions.

Competing financial institutions
Financial companies will compete for clients as a 'pool' of borrowers turn in large numbers to acquire loans. Loan borrowers should remain focused and work out loan programs before engaging in any loan acquisition. No matter how the companies offer sweet loan deals and the customers must remain keen and only borrow when it is necessary. Companies will rush to offer low interest rates in order to attract customers but the implication will be an impulse borrowing from unwise decisions

Unstable interest rates
The early stages of recovery experience unstable economic growth with fluctuations ON major economic parameters such as dollar rates, import and export prices and stock exchange indices among others. Bank rates remain unstable. Over borrowing and multiple borrowing may be accompanies by increased loan interest rates due to untimely change ON the economic recovery resulting to fluctuations in dollar currency to low values against other major currencies. This would place the loan clients to be pushed to financial 'shackles'.

Slow recovery process
The recovery will be characterized by slow growth and its effect may not be immediate. Changes in commodity prices may take long to adjust. Likewise business volume may take long to improve. It may take more than six months for any significant change to be felt. Financial borrowers should be cautious as any early and massive borrowing will put them into crossroads and the effect would be severe financial constraints.

Prospective loan borrowers must remain composed as the recovery will attract increased household spending and at the same time engage in more loan acquisition. If these financial traps are observed they could save the borrowers from difficult circumstances they may find themselves in. Abstaining from untimely and undisciplined borrowing and cash overexpenditures at the beginning of the economic come back would be a commendable practice.