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Thursday, February 26, 2009

How to Get Instant Unsecured Personal Loans

By Rick Zimmer

It's human nature to want instant gratification in everything we do - and our financial situation is no exception. Whether it's earning money, spending money, or even borrowing money we want it right now. That's why instant unsecured personal loans are starting to become more popular.

It's probably worthwhile to clarify what I mean by personal loans in the first place - there was a time that I wondered if personal loans meant the lending of money by one individual to another (like a family member or a friend), but that's not really it at all. A personal loan is usually defined as a short-term cash loan meant to help people get though the week to their next paycheck. Many people just call them payday loans.

Your goal when seeking an unsecured personal loan is to get the bank to lend you funds without any tangible security protecting their money - as in collateral. When they don't have collateral covering their money all they have left is their belief in your ability and willingness to repay the debt, which can be suspect at best. That's why these kinds of loans often come with chunky fees and startling interest rates.

An instant unsecured personal loan is something you can get, but you need to realize you're going to pay for it. In many cases the lender is going to require you to pay up to 10% of the loan amount in a borrowing fee, and then stick you with interest rates approaching or passing 30%.

Depending on your specific situation, you might be seeking a very small personal loan or a really big one. The amount banks are willing to lend actually vary a lot - on the low end you could borrow $150 or less, and on the high end you might borrow twelve hundred to fifteen hundred dollars. Do the smart thing and borrow only as much as is necessary to take care of the expenses that are truly urgent.

The smartest thing you could ever do is make sure you don't have a future need for this type of personal loan. Nobody really likes the idea of keeping a strict budget, but managing your money and setting aside a certain percentage of all your paychecks for a rainy day will ensure that you no longer need high interest loans to keep your family's head above water.

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