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Tag Archives: borrowing money

Understanding Different Types of Personal Loans

secured and unsecured personal loans

In order to stop living paycheck to paycheck, establishing an emergency fund is vital. Having adequate savings is really the only thing that will keep someone out of debt for the long term. However, there may be times when an emergency happens before we are prepared. Multiple problems often happen at the same time. Loans can offer a solution to financial problems that happen all at once. Before borrowing,  it’s important to understand the different types of personal loans to make the best choice for your situation. Unsecured Personal Loans Unsecured personal loans are just like they sound. You don’t have to put forth any collateral. The loan is not secured by something you own or by a co-signer. The good thing about this type of loan is that it’s quick and can provide cash almost right away. The bad thing is that the interest rates are higher than on loans secured with collateral, and generally, the repayment terms are short. If this type loan isn’t paid off within the agreed time period, huge interest charges will accrue. While the loan company can’t take any possessions from you for non-payment, they can ruin your credit. Don’t take an unsecured personal ...

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Paycheck to Paycheck is No Way to Live

If you are one of the millions of people who lives paycheck to paycheck, you might find yourself in the situation of having more days than dollars in the month.  That can be a very scary feeling when you know that your bank account is empty, and there are still several days until you get paid. While panic might set in, if you take a minute to analyze the situation, it might not be as bad as you think. With some planning, I believe anyone can avoid the problem of running out of money at the end of the month. If you know that you are completely broke and have more than a day until payday, organize what you need to buy. I like lists, so I would write down what you think will need money until the next payday. If the list includes food, gas to get to work, or rent/mortgage or bill payments, those are necessities. If the list includes a birthday gift, a promised dinner out with a friend, or some sort of apparel, those can be postponed or avoided. It might not be the most popular thing to do, but if your friend is truly a ...

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