Personal Signature Loans and The Art of Borrowing
The global economy is a big foul-up right now, and all the credit (or blame) can be placed squarely on the shoulders of irresponsible borrowers everywhere. Borrowing intelligently is really an art form, and the large majority of credit users are doing it as stupidly as anyone ever could. What we're bringing in in the form of income doesn't come close to what we're sending out in the form of borrowed spending, and we seem to have given up entirely on putting money away for a rainy day - that's right - nobody saves anymore.
The biggest indicator of how poorly we've borrowed over the last few years is the housing market; let's face it - you can't afford a $300,000 home when you earn less than $60,000 per year. It's simple math, and it's not the government's fault you can't pay your mortgage. Now the responsible members of society will pay the bills of the irresponsible in the form of tax-funded bailouts.
We have to do better next time, and doing better means using credit intelligently. Most of the time borrowing wisely means not borrowing at all, including avoiding personal signature loans and other quick cash borrowing tools. Stay away from them no matter what - even if it means taking a part time job to get by in the meantime.
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?
So, it's always going to be a terrible move, but sometimes I suppose using these kinds of loans will be unavoidable. You might lose your job due to an unfair boss who fired you just because you nicked his car pulling out of the parking stall at the office. Next thing you know you're out of a job.
Of course that's not fair and technically you could sue him. But do you have the money for a lawsuit? I doubt it.
The only remaining option may be to bite the bullet and head to your local bank or loan store. After all, your mortgage company isn't going to let you skip payments just because you have a crazy boss; they have big time cash problems of their own.
The only sound advice I can offer you is to only take from the bank the minimum necessary funds to keep your bills current until you get a new job and get back on your feet. And Don't be choosy when it's time to find that job. In these crazy times, we'd all be wise to take whatever employment presents itself to us.
The biggest indicator of how poorly we've borrowed over the last few years is the housing market; let's face it - you can't afford a $300,000 home when you earn less than $60,000 per year. It's simple math, and it's not the government's fault you can't pay your mortgage. Now the responsible members of society will pay the bills of the irresponsible in the form of tax-funded bailouts.
We have to do better next time, and doing better means using credit intelligently. Most of the time borrowing wisely means not borrowing at all, including avoiding personal signature loans and other quick cash borrowing tools. Stay away from them no matter what - even if it means taking a part time job to get by in the meantime.
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?
So, it's always going to be a terrible move, but sometimes I suppose using these kinds of loans will be unavoidable. You might lose your job due to an unfair boss who fired you just because you nicked his car pulling out of the parking stall at the office. Next thing you know you're out of a job.
Of course that's not fair and technically you could sue him. But do you have the money for a lawsuit? I doubt it.
The only remaining option may be to bite the bullet and head to your local bank or loan store. After all, your mortgage company isn't going to let you skip payments just because you have a crazy boss; they have big time cash problems of their own.
The only sound advice I can offer you is to only take from the bank the minimum necessary funds to keep your bills current until you get a new job and get back on your feet. And Don't be choosy when it's time to find that job. In these crazy times, we'd all be wise to take whatever employment presents itself to us.
About the Author:
Mark has a passion for educating people about signature loans and knows quite a bit about getting a guaranteed signature loan as well.
posted by Credit Counseling at
5:16 AM
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