July 28, 2018
Personal Unsecured Loans Could Help With Financial Woes
Cash flow problems can afflict any of us, even the rich. Unexpected emergencies or financial outlays are the most probable causes: Car repairs, medical emergencies, travel requirements to care for family or friends, a bill coming due, school fees or tuition costs, and the list can go on. Many times these unexpected costs can be covered by an unsecured personal loan, especially for those who do not have, or do not want to jeopardize, valuable personal property for collateral or security on the loan. Understand though, that unsecured personal loans can cost a bit more in interest charges than the secured variety.
The friendly loan is one type of personal unsecured loan
If you can muster the courage to approach a friend or family member for an infusion of much needed cash, that could be considered an unsecured loan. These loans must be approached with much delicacy though. Terms of repayment and interest, if any, should be written down and understood by both parties. Every attempt must be made to honor the terms of such loans. Not really a surprise, bad blood can arise from financial dealings that are treated cavalierly, especially by the borrower. Do not enter into such a financial deal unless you are absolutely sure you can honor the commitment.
Non-traditional lenders are the best resource
Unless you have collateral, such as real estate, stocks and bonds, or even a late model car, traditional lenders such as banks and credit unions are going to be tough sources for an unsecured personal loan. This is especially true if you have a poor credit history. Your best bet would be to approach online lenders. Since these unsecured loans are somewhat risky to the lender, expect to pay higher than usual interest rates. Unsecured loans typically range from $500 to $1500. These loans are sometimes referred to as cash advance or payday loans.
Online lenders offer accessibility
Because of the tougher standards for traditional lenders, many private lenders in Singapore have stepped in to fill the breach. The competition is fierce, allowing the borrower the opportunity to shop around for the best interest rates and repayment terms. You can even find brokers such as Easy Credit Money Lender who will take your general information and provide you with a list of lenders most apt to suit you in terms of interest rates and repayment terms. Applying for unsecured personal loans online is very easy to do and requires minimal documentation. You can often have funds in your bank account within 24 hours, sometimes sooner.
Credit cards are another type of unsecured loan
Credit cards are a source of unsecured funding as well. The credit card issuer is lending you the funds to pay the merchant or service provider. But you have to be careful. Sometimes it is less expensive interest wise to take out an unsecured loan than it is to use a credit card. And credit card spending is easily abused. In fact, credit card debt is one of the major reasons so many consumers find themselves in financial turmoil nowadays. Making only minimum payments is not a good way to deal with credit card debt. Late payments or missed payments and the resulting very expensive fees can drag a user into a financial morass in no time. Never use a credit card for cash advances. The interest rates and fees would make a loan shark blush.
Meet the terms and conditions of your unsecured personal loan
Be sure you do not get more money than you need. Make sure your budget is such that you can afford to make repayment according to the terms of your contract, no matter which type of venue you use, from friendly loans to credit cards.