Personal Signature Loans and The Art of Borrowing
So much of the junk we're facing in our world economy is thanks to the fact that for the last ten years or so the world chose to use - and abuse - the credit system. Smart borrowing is an art, and the world population (but especially we in the United States) have made an absolute mess of it. Our incomes couldn't possibly keep pace with our borrowing, we have all but abandoned the habit of saving for the future, and the current state of things is what we're reaping.
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 am being so harsh on this issue? Because short term loans (whose term is a few weeks or less) are going to carry awful interest rates almost without exception. Do you like the idea of paying 80% or 90% interest and high fees? Neither do I.
It's really never a SMART move, but there may be circumstances in your life when it becomes absolutely necessary to borrow money this way. For example, let's say that one morning you pull into your parking space at the office and you accidently dent your boss's car. And he fires you.
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?
The only remaining option may be to bite the bullet and head to your local bank or loan store. After all, your mortgage company isn't going to let you skip payments just because you have a crazy boss; they have big time cash problems of their own.
The best words of wisdom I can offer you are to borrow not one cent more than you need to keep your family afloat till you land a new job. And whatever employment opportunity comes your way - take it! When people are throwing around words like recession and depression it's no time to get greedy about which job you will or won't take.
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 am being so harsh on this issue? Because short term loans (whose term is a few weeks or less) are going to carry awful interest rates almost without exception. Do you like the idea of paying 80% or 90% interest and high fees? Neither do I.
It's really never a SMART move, but there may be circumstances in your life when it becomes absolutely necessary to borrow money this way. For example, let's say that one morning you pull into your parking space at the office and you accidently dent your boss's car. And he fires you.
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?
The only remaining option may be to bite the bullet and head to your local bank or loan store. After all, your mortgage company isn't going to let you skip payments just because you have a crazy boss; they have big time cash problems of their own.
The best words of wisdom I can offer you are to borrow not one cent more than you need to keep your family afloat till you land a new job. And whatever employment opportunity comes your way - take it! When people are throwing around words like recession and depression it's no time to get greedy about which job you will or won't take.
About the Author:
There are banks out there who offer signature loans for people with bad credit, so there's no reason to be discouraged. Go to Mark's website if you're in the market for signature personal loans.
posted by Debt Consolidation Loan at
6:38 AM
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