What you need to know before applying for a loan

SOUTH FLORIDA – Knowing the types of debt can help you in overcoming financial problems. This article describes matters related to debt especially personal loan. Keep reading!

  1. Personal payment – One option is a personal unsecured installment payment by installments from a responsible lender, such as a credit union, bank or other financial institution. If you have a bad credit history, you can try installment loans for bad credit.
According to the Responsible Lending Center, unlike loans for payday, these products differ:
  • Minimum 90-day return
  • Installment option
  • The requirement of an unfair pledge (car name)
  • Extension limits
  • Consideration of the borrower’s ability to pay off
  • No binding arbitration
  • One-time late fee / penalty fee

2. Payment plan with creditors – If the problem is related to the debt, contact one or more creditors and ask to agree on partial payments or develop a payment plan on a temporary basis. Sometimes you need a reduction or deferred payment or two. It is also recommended you try more than one source to secure a loan, Plenti offers a variety of loan interest rate loans.

3. Pay an advance – Some employers provide a salary. If you work in a large company, consult with human resources. With a small business, ask the owner about progress. Usually, since this is an advance, not a loan, there will be no interest. It is important, of course, not to abuse this practice.

4. Credit counseling – Although this is not an immediate solution, credit counseling can help avoid diving deeper into debt. Retired CEO, Gordon Simmons shares his perspective on what consumers need to be aware of and the importance of having a good credit scored.

What you need to know before applying for a loan5. Emergency Assistance – Some community-based organizations often provide emergency assistance, providing assistance with everything from utilities to groceries to paying for a car.

  1. Cash advance on a credit card – Although an advance cash credit card is not ideal, even at 30% per annum, it is still much cheaper than the payday. Keep in mind that some credit card companies take advantage of consumers who need fast money by offering a secured credit card tied to a savings account or another asset.7. Accounts for pensioners – You may be able to partially refuse your individual retirement account. You can (effectively) borrow from your account once a year, without penalties, if you return the money within 60 days.

8. Friends and family – Borrowing from people you know can tense your relationships. However, if you need a small amount for a short period of time and you can return it; this option may be for you. Offer to pay reasonable interest on the “loan”, as there is a possibility that you will borrow money from another interest account.

9. Banking / Credit Union Cash – Many banks and credit unions have overdraft protection or cash. Despite the fact that more expensive than installments, these options are cheaper than a loan on a payday. Consult your bank or credit union to find out what is available and register, just in case.

Hopefully this article will help you understand the common mechanisms of seeking financial help. Keep in mind that you owe it if it is really needed. Do not make debt as a habit. Good luck!

South Florida Caribbean News

The Team provides news and information for the Caribbean-American community in South Florida and beyond.

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