Personal Signature Loans and The Art of Borrowing
Many of the problems in the world financial system right now are due to the widespread misuse of credit. It all really comes down to the Art of Borrowing, and as a nation (and world) we've been going about it all the wrong way. We're borrowing way too much relative to our income; we're saving less than 0% of our earnings, and we're headed down the path to financial destruction.
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?
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.
Sure that would be completely unfair, and you'd probably even be justified in taking legal action against him, but it would be of no use. And besides - you're unemployed now - you don't have any money to pay attorneys do you?
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.
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 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?
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.
Sure that would be completely unfair, and you'd probably even be justified in taking legal action against him, but it would be of no use. And besides - you're unemployed now - you don't have any money to pay attorneys do you?
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.
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:
Internet loan seekers should check out Mark's site for information on finding unsecured signature loans if they want to secure a signature loan online for short term loans.
posted by Credit Counseling at
9:16 AM
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