Borrowing money is not always a bad financial move. When done responsibly, borrowing can be an excellent way to invest in the future. However, the past few years have been unusually difficult for American consumers who need to take out a loan or other type of new credit. They have had to contend with not only a recession, but also a lackluster job market and high unemployment.
One of the effects of the housing and financial meltdowns has been that banks and credit unions have drastically tightened their lending practices and credit requirements for prospective borrowers. This situation has forced many individuals to look for other, less traditional, sources of money.
Borrowing money is a serious financial decision which should always be well thought-out and approached with caution. Before agreeing to any type of non-traditional loan, be certain you know all the facts and understand the risks involved.
Today's economic climate has made it very difficult for many consumers with less-than-perfect credit to qualify for traditional loans from banks and credit unions. As a consequence, short-term loans such as payday advance and auto title loans have become increasingly popular. As tempting as an auto title loan may seem at first glance, you should be aware of the advantages and disadvantages of this type of loan and understand the serious risks involved.
A new report indicates that more and more Americans are borrowing from their 401(k)s to pay for routine bills and worse yet, are failing to put any money back. The recession which started a few years ago has caused many individuals to borrow from these retirement accounts in an attempt to stay afloat monetarily. But financial experts agree that borrowing from your 401(k) is almost always a very bad idea.
Payday loans are called short-term loans for a very good reason - the borrower usually has only two weeks to fully repay the loan. Numerous studies have shown that many borrowers take out payday loan after payday loan and quickly are caught up in a serious cycle of debt which is extremely difficult to overcome. Learn how to break this continuous debt-cycle and how to get started on a sound financial path.
Many consumers have been shut out from traditional lending sources because of tightened credit requirements. Because of this, the number of individuals who have turned to online payday lenders for short-term loans has sky-rocketed over the past several years. If you are considering using a payday advance loan to help you through a financial rough spot, the Federal Trade Commission (FTC) urges you to use extreme caution when dealing with this type of lender.