Raising money in a hurry isn’t easy. If working full-time isn’t affording you the opportunity to start a business, buy a new car, or invest in a home, it may be time to look into alternative measures. Nobody is giving away money for free, but with the right credentials and attitude, you may find yourself on the receiving end of a loan. With more types of loans available than fingers on hands, figuring out what type of loan is right for you can be confusing. Don’t let yourself fall victim to a faulty loan.
A consolidated loan is an effective means of lowering the immediate pressure when bills start to stack to the ceiling. These loans pay off a variety of debts and monthly charges; these are popular loans for covering credit card bills. After all is said and done, a consolidated loan will reduce monthly payments and usually lower interest rates. A consolidated loan makes monthly payments easier to handle by billing them to a single source. Be warned — take caution when deciding what equity to use as an asset with consolidated loan, if it’s required.
Personal loans are flexible loans where the lender doesn’t necessarily need a concrete, dedicated purpose for funding (unlike automobile loans and educational loans), says Guarantor. These loans can be used for personal expenses and endeavors, and are oftentimes the best option for people who already have outstanding debts, most commonly credit card-related. Although credit history determines the actual amount and interest rate of a personal loan, the loan itself is meant to help transfer balances to reduce interest rates. Unsecured loans can be a better option than secured loans because you aren’t risking collateral, meaning you don’t need to own a house or other asset to get a loan.
The great thing about personal loans is that they avoid some of the detractors associated with purpose-specific loans. Who says you can’t use a personal loan towards a car or house? Avant offers loans of this nature with a high rate of satisfaction.
Payday loans are another loan option for raising money quickly. These loans are short-term and have a high-interest rate, wearing their cautionary sign like a badge of honor. Payday loans are not highly recommended, but they can be essential for getting out of a tight squeeze. Payday loans are usually used by people who borrow repeatedly to make ends meet. They are meant to help bridge the gap between one paycheck and the next, although the long-term negatives often outweigh the short-term positives. The government warns citizens against the loans as they can lead to a vicious circle of interest rates and unexpected payments. Companies like Citizen Loan offer payday loans readily.
Taking out a loan can be scary. Becoming informed about the type of loan you plan to take out can be the difference between finding your way out of debt, or becoming entrenched waist-high in it. The most important thing to consider when taking out a loan to raise money in a hurry, is how to use that loan to keep yourself from needing another down the road.