Personal Signature Loans and The Art of Borrowing
So much of the junk we're facing in our world economy is thanks to the fact that for the last ten years or so the world chose to use - and abuse - the credit system. Smart borrowing is an art, and the world population (but especially we in the United States) have made an absolute mess of it. Our incomes couldn't possibly keep pace with our borrowing, we have all but abandoned the habit of saving for the future, and the current state of things is what we're reaping.
Residential real estate, and all the abuses on the both sides of the transactions, is the most glaring indicator of how ridiculous our country has chosen to behave itself with respect to credit and lending practices. A plumber earning $54,000 per year has no business borrowing $400,000 to buy a home; he'll never be able to to keep up with the payments. And now the taxpayers of the world, most of all those who have kept their mortgage current by not borrowing more than they could pay back, are footing the bill.
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?
It's really never a SMART move, but there may be circumstances in your life when it becomes absolutely necessary to borrow money this way. For example, let's say that one morning you pull into your parking space at the office and you accidently dent your boss's car. And he fires you.
In spite of how unfair the firing is, there may not be a whole lot you can do about it. What are you going to do - sue him? The reality is that in a lawsuit, nobody wins. And how are you going to pay a lawyer anyway?
So with no job, and the bills stacking up, and no family or friends to lend you some money to get you buy, the only choice might be to go to your bank and ask for a signature loan. You see, your mortgage lender isn't going to cut you a break just because your boss unfairly terminated you.
Here's my advice: borrow the absolute minimum you need to get by until you and secure a new job and your next paycheck. And take any job you can get - in this economy we can't really afford to get greedy or picky when it comes to making a few bucks. For the next few years it's in all of our best interest to do whatever is (legally and ethically) necessary to feed our families and keep our bills paid.
Residential real estate, and all the abuses on the both sides of the transactions, is the most glaring indicator of how ridiculous our country has chosen to behave itself with respect to credit and lending practices. A plumber earning $54,000 per year has no business borrowing $400,000 to buy a home; he'll never be able to to keep up with the payments. And now the taxpayers of the world, most of all those who have kept their mortgage current by not borrowing more than they could pay back, are footing the bill.
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?
It's really never a SMART move, but there may be circumstances in your life when it becomes absolutely necessary to borrow money this way. For example, let's say that one morning you pull into your parking space at the office and you accidently dent your boss's car. And he fires you.
In spite of how unfair the firing is, there may not be a whole lot you can do about it. What are you going to do - sue him? The reality is that in a lawsuit, nobody wins. And how are you going to pay a lawyer anyway?
So with no job, and the bills stacking up, and no family or friends to lend you some money to get you buy, the only choice might be to go to your bank and ask for a signature loan. You see, your mortgage lender isn't going to cut you a break just because your boss unfairly terminated you.
Here's my advice: borrow the absolute minimum you need to get by until you and secure a new job and your next paycheck. And take any job you can get - in this economy we can't really afford to get greedy or picky when it comes to making a few bucks. For the next few years it's in all of our best interest to do whatever is (legally and ethically) necessary to feed our families and keep our bills paid.
About the Author:
Internet loan seekers should check out Mark's site for information on finding unsecured signature loans if they want to secure a signature loan online for short term loans.
posted by Credit Counseling at
10:07 AM
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