Secured loans are often less expensive and easier to apply for than unsecured loans. Quite simply, this is because the lender has some assurance that they will not lose money on your loan. If you default on a secured loan, the lender can legally seize or repossess whatever property you have used as collateral and resell it.
Where can you find collateral? There are many options!
Assets. Real estate is one of the most common assets used as collateral. If you have a home or condo, you can use this to secure a loan, even a larger loan. You can also use land, cars, boats, and other large pieces of property to secure a personal loan.
Stocks and bonds. If you own bonds and stocks, some lenders will allow you to use these assets as collateral.
Business possessions. If you own your own business, you may be able to use current profits, future profits, warehouse inventory, and any business property you own (including equipment) as collateral.
Life insurance. If you have life insurance, some lenders will allow you to borrow against this or use this as collateral.…
Thanks to a bad economy, lenders are running scared. Even though there are some signs of economic recovery, currently most lenders are not lessening any credit requirements for most personal loans. When many people defaulted on their loans last year, many lenders tightened requirements, making it harder for folks with dings on their credit to qualify for most loans – especially unsecured loans. Now, even though the economy is recovering slowly, demand for loans is low (that means that fewer people are borrowing). Despite this, lenders are not necessarily making it easier for people to secure loans. At the same time, they are not making loan requirements more demanding.
If you need a personal loan right now, you will need very good credit. The tough standards in place during last year are still in place. Over the next year or two, it is possible that credit requirements will loosen somewhat, making bad credit loans and unsecured loans easier to get. For now, if you need a loan be sure to check out our guide to weathering the credit crisis. Improve your credit as much as you can and apply for a loan. If your credit needs a lot of work and you need cash for an emergency, keep in mind that payday loans are still plentiful and easy to get. Although they may be more expensive than traditional loans, they are a good option to have in an emergency.…
A line of credit is a little like a mix of a credit card and a bank account. Like a credit card, a line of credit is a type of unsecured loan. You have a credit limit (just as with a credit card) that you can borrow against. Just like a bank account, however, you can withdraw money from your line of credit at an ATM. You can even write a check, usually, for your line of credit. The nice advantage is that lines of credit usually have more attractive interest rates than credit cards, especially if you get a secured line of credit.
Many people with uncertain incomes like to have a line of credit. If you are self-employed or work on commission, for example, your monthly wage might fluctuate a lot. A line of credit gives you cash when you need it and when you get a more prosperous month, you can pay off your debt amount again. Many people also like to have a line of credit when they know they will face upcoming big expenses but aren’t sure how much they will eventually spend. For example, if you are working your way through school and will need some money but don’t want student loans, a combination of work, scholarships, and a line of credit might help. If you are completing renovations to your home, a line of credit can be an affordable way to borrow money for your project.…
Many people say they’ll exercise or start eating healthy “tomorrow” and for far too many, tomorrow never arrives. It’s easy to procrastinate when it comes to doing the things you know you need to do, but not doing basic things such as exercising – or taking care of your finances – can really catch up with you. Here’s how to break the procrastination habit when it comes to investing.
Take one small step. Trying to get everything right is one reason most of us put off investing. Today, instead of trying to get it all right, put a few dollars in an investment account or set up an appointment with someone at your bank to talk about investing.
Find someone who will make you accountable. A professional at your bank will encourage you to invest, as will an investor who teaches a class to new investors. These can be great motivators. Develop a written plan with a deadline. Rather than thinking of investing as something you will do “someday” develop a step by step guide – how much will you invest and when? What steps do you need to take before then? Will you invest in CDs, real estate, stocks, or something else? Writing it down makes it seem more manageable and real, so you are more likely to follow through.…
Without good goals, you are unlikely to actually accomplish what you set out to do. Here’s how to set financial goals that will take you to your personal finish line:
1) Consider what you want money to bring you. Many people focus on a specific number they think they need – say, a million dollars – in order to retire someday. A better strategy is to find out exactly what you will need to enjoy the lifestyle you want. This will give you the most accurate idea of what you should be saving and how you should be investing.
2) Look at what you are doing financially that needs a bit of work. Are you overwhelmed with payday loans, personal loans, and debt? Are you living paycheck to paycheck? Do you have huge credit card bills? Target those areas that need improvement and set some goals.
3) Look at what you are doing right. Are you already saving or setting up an emergency fund? Give yourself a pat on the head – and set some goals for improving these strong areas of your finances a little more.
4) Set a deadline. When setting financial goals, remember to decide when you want to accomplish certain things. Then, determine what you need to do today to get to your goal. If you want to retire in ten years, you may need some financial advice today, for example, or you may need to start saving!…