Personal Signature Loans and The Art of Borrowing
The global economy is a big foul-up right now, and all the credit (or blame) can be placed squarely on the shoulders of irresponsible borrowers everywhere. Borrowing intelligently is really an art form, and the large majority of credit users are doing it as stupidly as anyone ever could. What we're bringing in in the form of income doesn't come close to what we're sending out in the form of borrowed spending, and we seem to have given up entirely on putting money away for a rainy day - that's right - nobody saves anymore.
Residential real estate, and all the abuses on the both sides of the transactions, is the most glaring indicator of how ridiculous our country has chosen to behave itself with respect to credit and lending practices. A plumber earning $54,000 per year has no business borrowing $400,000 to buy a home; he'll never be able to to keep up with the payments. And now the taxpayers of the world, most of all those who have kept their mortgage current by not borrowing more than they could pay back, are footing the bill.
We can never let ourselves get in this situation again, and to avoid it we have to decide as a nation of borrowers that we'll use credit with a lot more care. Often - possibly the majority of the time - using credit with care means not using it at all. If you need extra money, get a part time job; don't borrow.
Why not? Well, because these types of loans nearly always carry terrible interest rates and bad terms. If you choose to borrow cash in this way you can end up paying in excess of 100% interest as well as hundreds of dollars in fees. How could that ever be a smart move?
That being said, while signature personal loans are generally an awful financial move, there may be times where you just can't avoid using them. You might experience sudden unemployment when your boss fires you for no apparent reason at all.
In spite of how unfair the firing is, there may not be a whole lot you can do about it. What are you going to do - sue him? The reality is that in a lawsuit, nobody wins. And how are you going to pay a lawyer anyway?
So with no job, and the bills stacking up, and no family or friends to lend you some money to get you buy, the only choice might be to go to your bank and ask for a signature loan. You see, your mortgage lender isn't going to cut you a break just because your boss unfairly terminated you.
Here's my advice: borrow the absolute minimum you need to get by until you and secure a new job and your next paycheck. And take any job you can get - in this economy we can't really afford to get greedy or picky when it comes to making a few bucks. For the next few years it's in all of our best interest to do whatever is (legally and ethically) necessary to feed our families and keep our bills paid.
Residential real estate, and all the abuses on the both sides of the transactions, is the most glaring indicator of how ridiculous our country has chosen to behave itself with respect to credit and lending practices. A plumber earning $54,000 per year has no business borrowing $400,000 to buy a home; he'll never be able to to keep up with the payments. And now the taxpayers of the world, most of all those who have kept their mortgage current by not borrowing more than they could pay back, are footing the bill.
We can never let ourselves get in this situation again, and to avoid it we have to decide as a nation of borrowers that we'll use credit with a lot more care. Often - possibly the majority of the time - using credit with care means not using it at all. If you need extra money, get a part time job; don't borrow.
Why not? Well, because these types of loans nearly always carry terrible interest rates and bad terms. If you choose to borrow cash in this way you can end up paying in excess of 100% interest as well as hundreds of dollars in fees. How could that ever be a smart move?
That being said, while signature personal loans are generally an awful financial move, there may be times where you just can't avoid using them. You might experience sudden unemployment when your boss fires you for no apparent reason at all.
In spite of how unfair the firing is, there may not be a whole lot you can do about it. What are you going to do - sue him? The reality is that in a lawsuit, nobody wins. And how are you going to pay a lawyer anyway?
So with no job, and the bills stacking up, and no family or friends to lend you some money to get you buy, the only choice might be to go to your bank and ask for a signature loan. You see, your mortgage lender isn't going to cut you a break just because your boss unfairly terminated you.
Here's my advice: borrow the absolute minimum you need to get by until you and secure a new job and your next paycheck. And take any job you can get - in this economy we can't really afford to get greedy or picky when it comes to making a few bucks. For the next few years it's in all of our best interest to do whatever is (legally and ethically) necessary to feed our families and keep our bills paid.
About the Author:
Qualified applicants won't have a problem obtaining a personal signature loan if you go to the right lender. Those of you with a poor credit history should go after high risk signature loans when seeking short term cash. Both can be found on Mark's website, Loan-Doctor.org.
posted by Debt Consolidation Loan at
4:19 AM
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