Personal Loans When You Need It

If you don’t own a home, or you don’t have much equity in your home, a personal loan may be your best choice if you are in need of money. If you get a personal loan with a fixed rate and term, it forces you to be disciplined and pay the loan off within the specified time frame unlike a credit card, which tempts you to continue spending. Also, the interest rate on a personal loan is usually lower than that of a credit card, although the credit card’s initial teaser rate may be lower.

 

Getting bad credit personal loans is easy and can save you from financial heartache!

 

 

A personal loan has some disadvantages to consider. For example, the interest payments are not tax deductible, while the interest on a loan secured with property usually is. Also, rates can easily be over 10 percent on a personal loan. Mortgages and home equity loans are usually closer to 6 percent. Therefore, you end up paying far more on a personal loan than you would on a home equity loan for the same amount.

 

 

The abstract also notes that defaulted loans are more frequently reported by lenders than by borrowers, and that defaulted loans are a major source of bad feelings between the two parties.

According to the Globe, “Borrowers are optimistic about their ability to pay, with 87 percent thinking they will eventually make good. But only 35 percent of lenders think they will see their money again.”

 

 

The Globe also says that “Loewenstein and Dezsö don’t want their study to be used to eliminate lending. Rather, they hope their findings are used to help people avoid the pitfalls. They advise the following: 1) Don’t succumb to pressure to make an immediate loan. Think about the consequences. 2) Get a contract. 3) Document payments with receipts. 4) And most importantly, don’t lend money you have to have back.”