March 23rd, 2008 — Questions, basic information, loan process
Hello Dear Readers,
I have been away for some time due to health problems, having been hospitalized and later having surgery. I am recovering and will be fine in time but meanwhile had abandoned my blog. :( I never had any intention of having this happen — had I known how serious the health stuff was going to get I could have arranged for someone else to “guest blog” for me.
Though I will be around more now, I am not 100% well and just don’t have the ability to pick up where I left off quite yet. So I am putting a really neat widget up in this post, a widget which will display articles on personal loans from the Ezinearticles.com site.
Clicking on the titles will take you away from my site. I would rather that did not happen but my main goal is to get information about personal loans “out there” for people considering utilizing them. Many, even most, readers of the blog will be taking out their first personal loan. So the variety of article topics from Ezinearticles should be a good fit for this site — for the time being. When readers are new to a topic, a broad perspective stands a good chance of helping the most readers seeking information about personal loans.
I look forward to being back with my regular articles — sooner than later. :) Here is the widget. It should update frequently as new articles are added all the time. — Matt
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January 11th, 2008 — cost of a loan, debt management, needs and goals
Personal loans can offer a way to have funds for many uses. Some uses are necessary while others are for pure enjoyment. It is important that you consider the financial obligation that comes with personal loans. Too often, individuals access money quickly then struggle to repay it. If you don’t have a good budget in place you may find yourself unable to make the payments on your personal loan.
On the other hand, late payments on multiple credit cards debt may be the struggle, and a personal loan may be used for debit consolidation and relief from this situations: The individual takes out a personal loan in the amount needed to fully pay off all credit card debt and then has one monthly payment to budget for — the personal loan repayment. This can work as a privately-managed solution to a bad credit card situation.
Yet many people get into trouble with personal loans used for debt consolidation. Within a year most people who use personal loans for this find themselves in even worse financial shape. This is because they have not altered their spending habits. The result is they continue using credit cards, often charge their credit cards up to the limit, and now have those payments to make again as well as a personal loan payment. They may soon find they are drowning in a pool of debt.
Enrolling in a debt management plan may be a great alternative for you to help you meet your financial obligations. Debt consolidation and/or management services may be provided by non-profit organizations as well as by profit-oriented businesses. Most debt management plans involve working with your creditors to reduce interest rates and working with you to establish a realistic budget and changed spending habits.
The first step in the process is to do some research on the debt management programs available. Have paper and pencil at hand and call more than a few such services because there are often major differences in approach and in the extent of services offered. The first call may seem intimidating but think of it is merely information gathering, not decision time. Soon you will be busy keeping notes of the benefits and requirements of the various plans.
After the calls, give some thought to which seem most suitable. Do a background check on these companies. This is really important — regardless of the type of organization a debt consolidation service is, scams and poor service exist in this area just as they do in other service organizations!
- Find out how long they have been in business under their current name.
- Check for any reports from customers with the Better Business Bureau.
When you have chosen one, call to schedule an appointment. You will need to bring statements for all of your bills as well as verification of your income. With a debt management counselor you will discuss your monthly obligations. They will work with your creditors to reduce the interest on your debt. This will reduce your monthly payments. You will then make one monthly payment to the debt management agency. They will then disburse the funds to your creditors. You will continue to get monthly statements from your creditors for your records.
It is important that you understand you can’t use any of your credit cards that you place into a debt management program. Keeping that in mind, you might want to choose one with a very small limit that you pay separately. You will avoid making any additional charges on that credit card unless it is an absolute emergency. You will want to discuss this with your debt management counselor.
Most creditors are willing to accept the terms of a debt management program because it shows you are accepting responsibility for your debt. They want to recoup the money you owe and this is a very realistic way for that to happen. Most debt management agencies have policies in place about missing payments. Generally, if you miss two payments in a row they will drop you from the program. Also, it’s important you notify the debt management agency as early as possible if you are having difficulties with making a payment. Ideally you should have in writing what your agency requires of you should you have problems making a payment, so follow any specific instructions.
Obtaining credit is often too easy, yet repaying it can be a struggle you have for a large portion of your life. If your personal loans and other debt have spiraled out of control, contact a debt management program to see if they can help your situation.
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December 3rd, 2007 — benefit vs. cost, loan process, needs and goals
Personal loans can be used for almost any purpose you would spend money on, the choice is yours. The holiday season really can put a strain on your budget! At this time of year any unplanned expense popping up may ruin plans you’ve been counting on for the holidays; for you, your sweetheart, or your whole family.
I don’t recommend using credit of any kind, credit cards or loans, to live above your means. However, people often place a high priority on having a cheerful Christmas or New Year’s, on seeing friends and family, and giving presents to loved ones. If these are a priority for you, it is wiser and more economical to plan a singe personal loan than to spontaneously charge on credit cards. The process of applying and getting a personal loan may be quite brief yet the process naturally gets you thinking about how much you need and want to spend. Reading the terms of repayment gives you pause to consider what that extra payment each month will be like with your budget and whether the seasonal enjoyments are worth the burden of those payments. Not so when pulling out a credit card.
Having a plan in mind and the money needed to carry it out as a result of a careful personal loan process may be a less expensive way to go than thinking you will be frugal but then being swayed by the moment and using your credit cards. Credit cards normally are high interest and have stiff “late” penalties. Unplanned-for buying is all too likely to happen around the holidays. This kind of credit card debt is so easy to accumulate at this time of year and often costs much more than a modest personal loan would for have cost to get the same spending power.
It would be ideal if we always had enough savings for the big holidays but some years it doesn’t go that way. There is debate whether this type of use for a personal loan is justified or is extravagant indulgence. Yet the seasonal pressure to spend for the holidays predictably puts many tens of thousands of people into excessive credit card debt every year! I take the view that life has to have a balance. You have to include some relaxation and fun in your life. You may greatly value time spent with out-of-town family but perhaps it has been some years since you have done this. Should you go into some debt to do this? Children are only young once, elders do not go on forever. If a personal loan makes this year’s holiday season a truly celebrated one, or makes possible a trip to be with special loved ones at Christmas time, then I say go for it.
It’s important to take the time to understand what you really need and what you really want. It’s also very important to completely understand the terms of personal loans and to use them wisely. They serve a much needed purpose for many of us, at one time or another.
–Matt
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