high interest – Blog Campcee http://blogcampcee.com/ Tue, 29 Mar 2022 08:48:18 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://blogcampcee.com/wp-content/uploads/2021/05/cropped-icon-32x32.png high interest – Blog Campcee http://blogcampcee.com/ 32 32 Loans as low as $1,000 https://blogcampcee.com/loans-as-low-as-1000/ Thu, 10 Mar 2022 04:00:34 +0000 https://blogcampcee.com/loans-as-low-as-1000/

Select’s editorial team works independently to review financial products and write articles that we think our readers will find useful. We earn commission from affiliate partners on many offers, but not all offers on Select are from affiliate partners.

Even if you’re married to your favorite credit card, you may find that there are times when it just doesn’t make sense to use it. For one thing, your credit limit may not be enough to cover a very large expense like a home renovation or a wedding. Also, credit cards usually carry high interest rates. These are areas where personal loans have the upper hand.

Personal loans have become a popular option for covering a variety of major expenses, such as home renovations, weddings, unexpected expenses, funerals and more. And in some cases, it may actually be more affordable to use a personal loan than to use a credit card, since personal loans are known for their relatively low interest rates.

There are many personal lenders out there, so it can sometimes be difficult to determine what each loan offers, but there are a few highlights to look out for. Avoiding prepayment charges and origination fees can help you save money on the cost of borrowing so that it can work in your favor to seek out a lender who does not bear these charges, such as loans PNC Bank staff.

Of course, however, you should always do additional research before applying for any financial product and ensure that you are comfortable with the terms of that product before signing on the dotted line.

To help, Select has reviewed PNC Bank’s APR, benefits, fees, loan amounts, and terms. (Learn more about our methodology below.) Read on to find out if PNC Bank is the right lender for you.

PNC Bank Personal Loan Review

PNC Bank Personal Loans

  • Annual Percentage Rate (APR)

    5.99% to 28.74% APR (0.25% APR discount when you sign up for autopay)

  • Purpose of the loan

    Debt consolidation, home improvement, wedding, moving and moving or vacation

  • Loan amounts

  • terms

  • Credit needed

  • Assembly costs

  • Prepayment penalty

  • Late charge

    10% of payment or $40, whichever is greater


  • No setup fees, no prepayment fees
  • Fixed rate APR
  • Flexible repayment terms
  • Loan amounts start at $1,000
  • No collateral needed

The inconvenients

  • Late payment fee invoice
  • Not the fastest funding (may take up to 10 business days)
  • Rates and conditions may vary depending on your postal code


APRs typically range from 5.99% to 28.74% for PNC Bank personal loans, but a more specific rate range (as well as other terms) will depend on your location and, of course, factors such as credit rating and amount of money needed. Prospective borrowers are encouraged to verify the rate range for their location by entering their zip code on the PNC Bank personal loan website.

Like many other personal lenders, PNC Bank offers a small discount on the interest rate for making payments automatically through a PNC Bank checking account (borrowers can receive a 0.25% discount for signing up so that their payments are automatically applied to your balance).

Personal loans from this lender also carry fixed interest rates that will not fluctuate over the life of your loan. Also keep in mind that generally the higher your credit score, the lower your interest rate is likely to be. PNC Bank does not disclose the exact minimum credit score required to qualify for its personal loan products.


There is some flexibility regarding your loan repayment schedule; borrowers can choose loan terms of up to 60 months.

And, as we mentioned above, if you already have a checking account at PNC Bank and use it to make your monthly payments automatically, you can qualify for an interest rate reduction of 0 .25%.


PNC Bank does not charge an application fee or origination fee, and there are no prepayment penalties for making additional payments to pay off your loan early.

However, there are late fees. Borrowers will be charged 10% of the payment or $40, whichever is greater, if a late payment is made.

And as with any other loan or credit product, it’s important to keep in mind that failure to pay in full on time may result in the lender notifying a credit reporting agency, which may affect your credit score.

Amount of the loan

Loan amounts range from $1,000 to $35,000, making this lender an attractive option for those looking to borrow small amounts of money (personal lenders can offer up to $100,000). Keep in mind, however, that not all applicants will qualify for the maximum loan amount. Qualification can usually depend on factors such as your creditworthiness.

And while PNC Bank personal loans can be used for a variety of expenses — including debt consolidation, home renovation, wedding, moving, or even vacation — there are some things you can’t use for. this loan. Prohibited uses include post-secondary education expenses, student loan debt refinancing, or any unlawful purpose.

Mandate’s duration

Candidates have a range of term lengths of up to 60 months.

At the end of the line

PNC Bank personal loans are a solid option for those who want to avoid origination fees and prepayment penalties. Although you don’t need to be an existing customer to apply for the loan, the biggest benefit is for those who set up automatic monthly payments through an existing PNC Bank checking account – you will receive an interest rate by 0.25%.

Since personal loan products may vary by location, your actual interest rate range and other terms may depend on your zip code. So you will have to check this before applying for this loan.

If you’re not comfortable with the terms you receive and are looking for slightly lower interest rates, check out LightStream Personal Loans, which offers APRs as low as 2.99% and an APR deduction of 0 .25% to automatically pay your bill each month.

Our methodology

To determine which personal loans are best, Select analyzed dozens of US personal loans offered by online and brick-and-mortar banks, including major credit unions, that have no origination or enrollment fees, from APRs to fixed rate and flexible loan amounts. and terms tailored to a range of financing needs.

When selecting and ranking the best personal loans, we focused on the following characteristics:

  • No creation or registration fees: None of the lenders on our top list charge borrowers an upfront fee for processing your loan.
  • Fixed APR: Variable rates can go up and down over the life of your loan. With a fixed-rate APR, you fix an interest rate for the life of the loan, which means your monthly payment won’t vary, making it easier to plan your budget.
  • Flexible minimum and maximum loan amounts/terms: Each lender offers a variety of financing options that you can customize based on your monthly budget and how long you need to pay off your loan.
  • No prepayment penalties: The lenders on our list do not charge borrowers for prepaying loans.
  • Simplified application process: We looked at whether lenders offered same-day approval decisions and a fast online application process.
  • Customer service: Every loan on our list offers customer service available by phone, email or secure online messaging. We have also opted for lenders that have a resource center or an online advice center to help you learn about the personal loan process and your finances.
  • Disbursement of funds: The loans on our list provide funds quickly by electronic transfer to your checking account or in the form of a paper check. Some lenders (which we have noted) offer the option of paying your creditors directly.
  • Automatic payment discounts: We’ve noted lenders who reward you for signing up for autopay by reducing your APR by 0.25% to 0.5%.
  • Creditor Payment Limits and Loan Sizes: The lenders above offer loans of varying sizes, ranging from $500 to $100,000. Each lender advertises their respective payment limits and loan amounts, and completing a pre-approval process can give you an idea of ​​what your interest rate and monthly payment would be for such an amount.

After reviewing the features above, we’ve sorted our recommendations based on overall financing needs, debt consolidation and refinance, small loans, and overnight financing.

Note that advertised rates and fee structures for personal loans are subject to fluctuation in accordance with the Fed rate. However, once you have accepted your loan agreement, a fixed rate APR will guarantee the interest rate and the monthly payment will remain constant for the duration of the loan. Your APR, monthly payment, and loan amount depend on your credit history and creditworthiness. To take out a loan, lenders will do a credit check and ask for a full application, which may require proof of income, identity verification, proof of address and more.

Editorial note: Any opinions, analyses, criticisms or recommendations expressed in this article are those of Select’s editorial staff only and have not been reviewed, endorsed or otherwise endorsed by any third party.

Who torpedoed Marcos’ economy? https://blogcampcee.com/who-torpedoed-marcos-economy/ Sun, 27 Feb 2022 13:01:48 +0000 https://blogcampcee.com/who-torpedoed-marcos-economy/

In / A Manila Time article published on January 24, titled “Did Ninoy torpedo Marcos’ economy to sink it?”, columnist Rigoberto Tiglao argued that Ninoy Aquino’s return to the Philippines and his assassination in 1983 sank the economy philippines, causing it to default on its foreign debt in october of that same year. According to Tiglao, Aquino made the Marcos era the “darkest years in the country”.

This article explains why this statement is false. But don’t take it from me, take it from Tiglao’s own arguments and data, as found in his earlier articles dating back to 1988.

In a 2016 Manila Time article, Tiglao wrote, “Ninoy Aquino’s assassination in August 1983 only hastened, but was not really the reason, for the default.” It is therefore disconcerting that in the space of a few years, Tiglao has gone from acknowledging that Ninoy’s assassination was only a trigger for the downfall of our economy to blaming him for the economic collapse.

The Philippines defaulted on its foreign loans a few months after the assassination of Ninoy Aquino in 1983, and experienced a deep recession in 1984 and 1985. However, at that time a political and economic crisis, a “perfect economic storm” , had been preparing for a long time. .

The crisis was the result of an accumulation of internal (mismanagement of resources, corrupt crony schemes, inefficient spending, massive and unpredictable corruption) and external (the global debt crisis of the 1980s) factors. While Tiglao’s 2022 column delved into the effect of the global debt crisis on our own economic collapse, he failed to mention the huge role played by the regime’s poor economic policy, on which he blamed. written articulately in his previous works.

To further defend the dictatorship’s economic policy and shift the blame to Ninoy, Tiglao asserted that the regime’s economic performance should be understood in two parts: the first being a period of growth and prosperity from 1972 to 1980, and the second , the era of economic collapse thereafter.

He claimed that during the “golden years” of martial law from 1972 to 1980, the economy grew robustly, which is why there was a lot of support for martial law and Marcos at the time. Indeed, for the elite, the early years of martial law were prosperous and the business environment favored them.

However, in a chapter Tiglao wrote in the 1988 book Dictatorship and revolution: roots of popular power, he wrote that it was only a semblance of prosperity. He noted that “the regime began accumulating its foreign debt at this time, partly to finance the infrastructure projects that would artificially stimulate the economy, and partly to finance the growth of a faction of the Filipino ruling elite who granted [Marcos] absolute loyalty: the “friends”.

This façade of prosperity brought about by massive infrastructure spending (financed by foreign debt) pushed the elite to embrace martial law. Economic power was concentrated in the hands of very few, and crony capitalism, defined as an economic system characterized by close and mutually beneficial relationships between government officials and business leaders, flourished.

In 1988, Tiglao also noted that this massive infrastructure development policy would later become one of the factors that caused the debt crisis of 1983, and that it was “the path of debt-led growth that led to the Philippines’ worst recession and ultimately contributed to the debt crisis. the fall of the regime. This contradicts Tiglao’s later writings – in 2018, in his book DebunkedTiglao defended the path of debt-led growth, citing that countries in Latin America and Asia also borrowed from US banks in the 1970s.

The Philippines’ debt-driven growth strategy failed because during the Marcos dictatorship, corruption was massive, unchecked, and unpredictable, and the spending of economic resources was unproductive and inefficient. In Debunked, Tiglao described the Filipino elite as “rapacious, in stark contrast to their Southeast Asian counterparts”. He cited a study that, during the Marcos era, “the elite from 1970 to 1981 took away $3.1 billion in massive capital flight.” (This was about a third of the country’s increase in foreign debt.)

Also, business may have boomed for the middle and upper classes, but as Tiglao explained in 1988 in Dictatorship and Revolution, poverty and inequality have worsened, leading to massive social unrest. He used the following data to illustrate poor distribution results during martial law:

• Due to the Green Revolution, poverty has increased in rural areas. The Masagana 99 program, which used high-yielding rice varieties dependent on fertilizers and pesticides, did not benefit all farmers equally. Poorer farmers were disadvantaged due to high investment costs. The sector was now vulnerable to the volatile influence of the international market economy. Because fertilizers and pesticides were petroleum-based, when the oil shocks hit in 1979, the government could no longer subsidize these inputs. Due to their lack of capital, farmers were swindled into more inequitable sharing arrangements with landlords or traders. Many had to sell their land and massive impoverishment ensued.

• Wage rates have also fallen considerably. From 1972 to 1978, the real wages of skilled urban workers fell by 24%, while those of unskilled workers fell by 32%. The regime has indeed issued a decree ordering the Central Bank to stop the investigations that determined these salaries.

• In central Luzon and southern Mindanao, more than 80% of the rural population lived below the poverty line. More than 40% of the rural population lived below the poverty line in the mid-1970s, and a majority of them depended on rice cultivation and maize cultivation.

• Sugar cane workers and coconut farmers under the Benedicto sugar monopoly and the Cojuangco coconut conglomerate were impoverished. When the Benedictos mechanized the sugar industry in the 1980s to reduce production costs, thousands of sugar workers lost their jobs. Meanwhile, capital was extracted from coconut farmers through the coconut tax, and when the commodity boom ended in 1974, there was massive impoverishment in the coconut areas.

Tiglao’s own arguments from his 1988 article show that martial law was certainly not the golden age, especially for the rural poor.

In 1981, the economy stagnated. Tiglao’s 2022 column blamed this not on government mismanagement, but on external factors: the “Volcker shock” in late 1979 when the U.S. Federal Reserve raised high interest rates and the soaring oil prices in 1980 due to the Iraq-Iran war. In 1982, Mexico defaulted on its foreign loans.

In 1983, Ninoy returned from his three-year exile in the United States. At this point, the country was already facing a huge economic crisis and Marcos’ health was deteriorating. In 2022, Tiglao, again blaming Ninoy, said that Ninoy had returned home to replace Marcos, and if he hadn’t been assassinated, a coup would have ensued, which would also have led to an economic crisis.

After Ninoy’s assassination, the political situation was unstable and business confidence plummeted. The Central Bank had gone bankrupt and at one point we didn’t even have enough money for our basic imports. Fifty-four days after Ninoy’s assassination, the Philippines defaulted on its foreign loans by declaring a moratorium on debt repayment. In 1984, we plunged into what was then the worst postwar recession the country had ever experienced.

Ultimately, the Philippines’ economic collapse was caused by a confluence of many factors, and as Tiglao mentioned in 1988, Marcos’ economic policies led to this catastrophe. Weak institutions, inefficient spending (both by the government and the Marcos family using public accounts), uncontrollable corruption, and crony capitalism embedded in traditional sectors under Marcos had already taken their toll on the country by the time Ninoy was killed.

“It was the straw that broke the camel’s back in the quagmire of our foreign debt,” Tiglao wrote of Aquino’s 2020 assassination, acknowledging that the Philippines was already struggling when it comes to our external debt in August 1983.

In 1988, Tiglao cited the Marcos regime’s economic policy decisions as contributing factors to the 1983 debt crisis, and he even recently claimed that Ninoy’s assassination was not really the reason for our collapse. His 2022 claim that “Ninoy torpedoed the economy” is therefore a complete about-face and distortion of the narrative.

If we’re to blame anyone for the “country’s darkest years,” it should rightly be Marcos. As Tiglao said in Debunked“Of course, the responsibility stopped with Marcos, and he had command responsibility.”

Pia Rodrigo is the Strategic Communications Manager for Action for Economic Reforms.

When is it okay to use your emergency fund to pay off debt? https://blogcampcee.com/when-is-it-okay-to-use-your-emergency-fund-to-pay-off-debt/ Fri, 25 Feb 2022 19:41:15 +0000 https://blogcampcee.com/when-is-it-okay-to-use-your-emergency-fund-to-pay-off-debt/

Select’s editorial team works independently to review financial products and write articles that we think our readers will find useful. We earn commission from affiliate partners on many offers, but not all offers on Select are from affiliate partners.

For many people, getting out of debt as quickly as possible is a top priority, especially if you’ve been carrying debt for several years and are crushed by high interest charges. So if you are so close To get rid of your balance once and for all, you might be wondering if it’s a good idea to use savings from an emergency fund to pay off your debt for good.

Why paying off a debt can seem so urgent

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Another advantage when it comes to paying off debt quickly is being able to redirect your money to other goals. Northwestern Mutual’s 2020 Planning and Progression Study found that 58% of respondents with debt believe their balance is preventing them from reaching major financial milestones. Of these respondents, 36% have delayed making major purchases, 29% said they have delayed saving for retirement, 18% have delayed buying a home, 8% have delayed having children and 7% delayed marriage.

So being able to finally reach certain financial goals can be a big factor when it comes to aggressively paying off your debt. If you’re spending $500 a month on credit card or loan payments, you can redirect that $500 toward retirement savings, a wedding, or buying a house once you’re debt-free. .

Should you use your emergency fund to pay off your debts?

The short answer is this: it depends on how much debt you have and how much money you have in your emergency fund.

Keep in mind that your an emergency fund exists to cover unforeseen expenses that would otherwise slow you down financially and put you further into debt. So if you had to use a significant portion of your emergency fund to pay off debt, you could significantly reduce your ability to cover a large, unexpected expense. This is why you need to consider the amount of your debts and the size of your emergency fund.

For example, if you have $10,000 in your emergency fund and a credit card balance of $5,000, paying off the debt would wipe out half of your emergency fund — and that could put you in a predicament. more vulnerable financial position if you don’t have one. other savings. But if you have an emergency fund of $10,000 left and a credit card balance of $500, you may be more likely to use some of your savings while feeling confident in your ability to manage. a significant unforeseen expense.

“If you reimburse these types of [debts] makes you vulnerable to a financial crisis that could potentially hurt your credit, file for personal bankruptcy, or be temporarily or permanently impoverished, so the financial reward of saving interest on debt reduction may not be worth the risk,” says JR Robinson, a personal finance expert at Credello.

And if you decide you could use some of the money in your emergency savings to pay off your debt, don’t forget to take steps to replenish your emergency fund.

Methods to pay off debt faster

LightStream Personal Loans

  • Annual Percentage Rate (APR)

    2.49% to 19.99%* when you sign up for autopay

  • Purpose of the loan

    Debt consolidation, renovation, car financing, medical expenses, marriage and more

  • Loan amounts

  • terms

  • Credit needed

  • Assembly costs

  • Prepayment penalty

  • Late charge

SoFi Personal Loans

  • Annual Percentage Rate (APR)

    5.74% to 21.28% when you sign up for autopay

  • Purpose of the loan

    Debt consolidation/refinance, home improvement, relocation assistance or medical expenses

  • Loan amounts

  • terms

  • Credit needed

  • Assembly costs

  • Prepayment penalty

  • Late charge

Another effective option can sometimes be to use a 0% APR balance transfer card if high interest rates make it difficult to pay off your credit card debt. Say you apply for a credit card like the Citi Simplicity® card or the US Bank Visa® Platinum card: you’ll be able to transfer the balance from an existing credit card to a new card and pay off as much as you can. with an introductory offer at 0% interest.

Citi Simplicity® Card

  • Awards

  • welcome bonus

  • Annual subscription

  • Introduction AVR

    0% for 21 months on balance transfers; 0% for 12 months on purchases

  • Regular APR

    14.74% to 24.74% variable

  • Balance Transfer Fee

    5% of each balance transfer; $5 minimum

  • Foreign transaction fees

  • Credit needed

U.S. Bank Visa® Platinum Card

On the secure site of US Bank

  • Awards

  • welcome bonus

  • Annual subscription

  • Introduction AVR

    0% for the first 20 billing cycles on balance transfers and purchases*

  • Regular APR

    14.49% – 24.49% (variable)*

  • Balance Transfer Fee

    Either 3% of the amount of each transfer or $5 minimum, whichever is greater

  • Foreign transaction fees

  • Credit needed

Finally, creating a budget can help you pay off debt faster while benefiting your overall financial health.

“By tracking your money and changing your spending habits, you can free up money to pay off debt faster,” says Robinson. “Look for ways to spend less money and also make more money. Where can you save money? Can you cook more and order less? How about a side gig or selling some items you own?”

Check out Select’s in-depth coverage at personal finance, technology and tools, The well-being and more, and follow us on Facebook, instagram and Twitter to stay up to date.

Editorial note: Any opinions, analyses, criticisms or recommendations expressed in this article are those of Select’s editorial staff only and have not been reviewed, endorsed or otherwise endorsed by any third party.

What is a no credit check loan? https://blogcampcee.com/what-is-a-no-credit-check-loan/ Fri, 25 Feb 2022 08:00:00 +0000 https://blogcampcee.com/what-is-a-no-credit-check-loan/

No credit check loans are loans where the lender does not check the borrower’s credit before approving and lending loans. These types of loans can be tempting if your credit is poor and you don’t qualify for other products. However, no credit check loans can be risky and are generally not well regarded as they tend to come with extremely high interest rates.

What is a no credit check loan?

A loan without a credit check is a loan that does not require a credit check. You might be tempted to apply if you don’t have the best credit and think you can’t be approved for other types of financing products. Here are some examples of loans without a credit check:

Payday loans

Payday loans are small, short-term loans that you can repay the next time you get paid. In most cases, you will pay them back within two to four weeks. These no credit check loans are designed to provide you with quick cash to hold you over until your next paycheck.

Installment loans without credit check

With no credit check installment loans, you borrow a lump sum of money and repay it over time via installments or fixed monthly installments. They usually come with larger loan amounts than payday loans and can be used to cover just about any expense.

Auto title loans

Auto title loans are secured loans that use your car as collateral. You give the lender title to your car in exchange for borrowing money. The amount you can receive will depend on the value of your car. Most lenders will let you drive your car while you pay off the loan. If you default on a car title loan, the lender can repossess your vehicle.

Secured credit cards

You cannot be approved for a traditional unsecured credit card with bad credit. This is where secured credit cards come in – some issuers don’t do credit checks for them. When you sign up for a secured credit card, you make a cash deposit which is usually equal to your credit limit. The credit card issuer will take your deposit if you do not pay your bill.

Co-signer loans

If you don’t qualify for a loan on your own, ask a trusted friend or family member to be your co-signer and apply for a loan with you. You’re more likely to be approved and earn a great interest rate if you have a co-signer with good or excellent credit. Just be sure to repay the loan so you can improve your credit and not leave your co-signer responsible for the payments.

Why are no credit check loans a bad idea?

Although no credit check loans may seem like a great option, you should avoid them if possible. Their sky-high interest rates lead to high payments, which can land you in a cycle of debt and wreak havoc on your credit. You may find that a loan without a credit check does more harm than good for your long-term financial situation.

Many no credit check loans are considered predatory loans because the exorbitant interest rates can trap people in a cycle where they will never be able to repay the loan. Some lenders also add additional fees that make it even more difficult to get your finances back in order. Many no credit check loans turn out to be scams. Finally, since this type of loan does not build your credit, you lose the possibility of having your payments contribute to increasing your credit score.

Can I get a loan with bad credit?

You don’t have to turn to a no credit check loan if you have bad credit. Fortunately, there are many lenders who accept borrowers with bad credit. They may look at factors other than your credit to determine if they should approve you for a loan, such as your income, work history, and debt-to-equity ratio.

What are the alternatives to loans without credit check?

There are several alternatives to no credit check loans that can give you the funds you need, even if you have bad credit or no credit. Here is a brief overview of them.

Bad credit lenders

A number of lenders specialize in providing money to borrowers with bad credit. If you go with a bad credit lender, you may be able to get a relatively low interest rate for someone with less than stellar credit.

credit unions

Compared to banks, credit unions often have lenient requirements. As long as you are a member, you may be able to get approved for a loan from a credit union, even with bad credit. Credit unions will likely look at your overall financial situation in addition to your credit. In addition, the interest rate they can charge is capped at 18%.

Alternative payday loans

Alternative payday loans (ALPs) are small, short-term loans offered by some federal credit unions. They are generally more affordable than traditional payday loans and come with longer repayment terms. If you apply for PAL, a credit union will ask you for proof of your income to ensure that you can repay your loan.

Secured loans

Secured loans are backed by collateral, which is something valuable that you own. Collateral can be a physical asset such as a house, car or boat. It can also be a cash deposit. Since secured loans are less risky for lenders, you can get approved for a loan with bad credit. The caveat, however, is that the lender can seize your collateral if you fail to repay your loan.

The bottom line

If you have bad credit or no credit and need to borrow money, do not resort to a loan without a credit check. Instead, explore the alternatives available to you and think about the pros and cons of each. By choosing an alternative like a loan from a lender with bad credit, you can save on interest and significantly reduce the overall cost of borrowing.

Learn more:

Looking for debt relief? Here’s how a credit counselor can help you https://blogcampcee.com/looking-for-debt-relief-heres-how-a-credit-counselor-can-help-you/ Mon, 21 Feb 2022 14:01:54 +0000 https://blogcampcee.com/looking-for-debt-relief-heres-how-a-credit-counselor-can-help-you/

Non-profit credit counseling agencies provide free or low-cost financial services to consumers struggling to manage debt or considering bankruptcy. Here’s what a credit counselor can do for you. (iStock)

Unmanageable high-interest debt can take a heavy toll on a consumer’s finances. It may seem that no matter how much you try to repay, the balances continue to grow as interest accumulates over time.

Ten percent of Americans are worried about missing their minimum debt payment in the next 3 months, according to the Federal Reserve Bank of New York. Becoming in default can cause some consumers to consider bankruptcy — and in the worst-case scenario, debt collectors can sue borrowers for unpaid debts, resulting in wage garnishment.

If you’re having trouble paying off your debts, you might consider seeking help from a nonprofit credit counseling agency. Credit counselors can help you develop a plan to pay off several types of debt, such as credit cards, unpaid medical bills, and payday loans.

Keep reading to learn more about credit counseling, as well as your alternative debt consolidation options. You can compare debt consolidation loan interest rates for free without affecting your credit score on Credible.


What is credit counseling?

Non-profit credit counseling agencies provide free, low-cost financial services to consumers struggling to manage their debts. Some consumers who file for bankruptcy may be required to seek credit counseling as part of their court filing. A credit counselor can help you by:

  • Provide advice on how to manage your money and debts
  • Analyze your finances and create a monthly budget
  • Get free copies of your credit report and credit scores
  • Sign up for a debt management plan (DMP), which may have a monthly cost
  • Negotiate with your creditors on your behalf to lower interest rates and waive late fees

Consumers should be aware that some for-profit debt management companies may disguise themselves as non-profit organizations. A reputable credit counseling agency should send you free information about the services they offer, according to the Consumer Financial Protection Bureau (CFPB). If an advisor is unwilling to provide this information, this is a red flag.

You can find reputable credit counselors through a few professional organizations, such as the National Foundation for Credit Counseling (NFCC) or the Financial Counseling Association of America (FCAA). You can also view the full list of approved credit counseling agencies on the Department of Justice website.

To learn more about your alternative debt consolidation options, contact a knowledgeable lending expert at Credible.


3 Alternative Debt Repayment Methods

Credit counseling is a relatively low-risk way to manage multiple debts, but it’s not your only option. Here are some other strategies to quickly pay off your debts.

1. Debt avalanche or debt snowball

The debt avalanche method involves paying off the debts with the highest interest rate first to save the most money over time. On the other hand, the debt snowball method is to pay off smaller balances first to speed up your debt repayment plan.


2. Credit Card Balance Transfers

It may be possible to transfer the balance of one or more credit cards to a new account at a lower interest rate with a balance transfer card. Credit card issuers typically charge a balance transfer fee of 3-5% of the total amount.

Some consumers may even qualify for a 0% APR introductory offer, which allows you to pay off your credit card debt over up to 18 months without interest. These promotions are generally reserved for borrowers with very good to excellent credit, which is defined by the FICO model as 740 or higher.

You can compare balance transfer cards from multiple credit card issuers at once on Credible.


3. Debt consolidation loans

A debt consolidation loan is a type of personal loan used to pay off unsecured debt at a lower fixed rate. Personal loans are lump-sum loans that you repay in monthly installments over a set period, usually a few years.

According to the Federal Reserve, two-year personal loan interest rates are currently at record highs, which means there’s never been a better opportunity to refinance your debt at a lower rate. Remember that the interest rate you are entitled to depends on your credit score and your debt-to-equity ratio.

Pay off $10,000 in credit card debt

A recent analysis estimates that well-qualified applicants can potentially save up to $174 on their monthly payments by consolidating their credit card debt into a personal loan. Over time, this can translate into thousands of dollars in interest cost savings.

If this strategy interests you, use a personal loan calculator to estimate your monthly payments. You can also visit Credible to compare debt consolidation loan interest rates to determine if this debt repayment strategy is right for your financial situation.


You have a financial question, but you don’t know who to contact? Email the Credible Money Expert at moneyexpert@credible.com and your question might be answered by Credible in our Money Expert column.

54% think debt is a reason for divorce https://blogcampcee.com/54-think-debt-is-a-reason-for-divorce/ Sat, 19 Feb 2022 14:34:08 +0000 https://blogcampcee.com/54-think-debt-is-a-reason-for-divorce/

Select’s editorial team works independently to review financial products and write articles that we think our readers will find useful. We may receive a commission when you click on links to our affiliate partners’ products.

Does your couple encounter problems and stress related to money? You’re not alone.

According to a SunTrust Bank survey conducted online by Harris Poll, 35% of people blame finances for the stress they experience in their relationships — and often at the heart of many couples’ financial conflicts is debt.

Being in debt can cause you to give up on the things that you would really like to prioritize as a couple, which can delay the achievement of various goals. In fact, recent findings from National Debt Relief report that 38% of couples miss dates and date nights when in debt.

According to the same study, people have such negative feelings about debt that 3 in 5 Americans have considered postponing their marriage to avoid inheriting their partner’s debt. In addition, 54% of respondents believe that having a partner in debt is a major reason for considering divorce.

“Debt can cause conflict and friction in a relationship, but it’s all about communication and how each partner views their debt,” says Dr. Regine Muradian, psychologist and board member of National Debt Relief. .

Although these indications seem dismal, there are steps couples can take when it comes to paying off their debts together. Here’s how debt can affect your marriage and what you can do about it:

Disagreements about how you spend money

Huge debts can cause partners to disagree about how to spend disposable income. For example, maybe one person wants to aggressively pay down their debts and throw extra money at the couple’s balance, but the other person wants to take more vacations together. These different debt, budget, and spending goals can give partners the impression that the money is not being used as they would like.

And those disagreements can drag on if high interest charges make it seem like you’ll never fully pay off your balance. Without additional debt, however, you can spend more of your money on other goals, like saving for a house, investing, or taking more vacations together each year.

Financial infidelity and secrecy surrounding expenses

Feelings of shame and lack of motivation

feelings of resentment

How to manage your debts as a couple

Debt management — especially larger amounts — can seem daunting and difficult, but Dr. Muradian outlines some impactful steps you can take to get started on the right foot.

She notes that it’s important to keep communication open about how much money it’s okay to spend.

“Avoid criticizing each other’s drinking habits and instead work to find solutions together,” says Dr. Muradian. “Each person can write out what their spending plan looks like separately, and then they can come together and merge the plan for a great path to success.”

She also says that it helps to create specific and clear goals together.

“For example, you can say ‘by this date we will have paid that much by creating monthly savings together.’ This way, the relationship is cushioned by teamwork and support.The couple will feel motivated as they achieve this goal of being debt-free together,” says Dr. Muradian.

There are also many tools available that can help you pay off your debts even faster. Balance transfer cards let you transfer high-interest credit card debt to a new card and make interest-free payments for a set period of time, usually for at least six months and up to 21 month.

During this 0% APR introductory period, you can pay off your principal faster since you won’t accrue interest charges. The Citi® Diamond Preferred® Card and the Citi Simplicity® Card offer an introductory offer of 0% APR for 21 months on balance transfers (afterwards, 13.74% to 23.74% variable APR on the Citi Diamond Preferred and 14.74% to 24.74% Variable APR on Citi Simplicity). All transfers must be completed within the first 4 months and there is a balance transfer fee for both cards, 5% of each balance transfer; At least $5.

Citi® Diamond Preferred® Card

  • Awards

  • welcome bonus

  • Annual subscription

  • Introduction AVR

    0% for 21 months on balance transfers; 0% for 12 months on purchases

  • Regular APR

    13.74% to 23.74% variable

  • Balance Transfer Fee

    5% of each balance transfer; $5 minimum

  • Foreign transaction fees

  • Credit needed


  • No annual fee
  • Balances can be transferred within 4 months of account opening
  • One of the longest introductory periods for balance transfers

The inconvenients

  • 3% foreign transaction fee
  • No rewards program

Citi Simplicity® Card

  • Awards

  • welcome bonus

  • Annual subscription

  • Introduction AVR

    0% for 21 months on balance transfers; 0% for 12 months on purchases

  • Regular APR

    14.74% to 24.74% variable

  • Balance Transfer Fee

    5% of each balance transfer; $5 minimum

  • Foreign transaction fees

  • Credit needed

And if you have different types of debt, personal loans can be an effective way to consolidate your debts into one simple, organized monthly payment at a lower interest rate.

So, let’s say you take out a loan like the LightStream Personal Loan or the SoFi Personal Loan: you’ll request a specific amount that’s enough to cover the total of all your debts, and the lender will send a specified amount to each of your creditors to pay off those debts. Then you will only be responsible for repaying the personal loan in the form of fixed, equal monthly payments plus interest. This can sometimes be more feasible for those who feel that managing multiple monthly payments to multiple lenders is overwhelming.

SoFi Personal Loans

  • Annual Percentage Rate (APR)

    5.74% to 20.28% when you sign up for autopay

  • Purpose of the loan

    Debt consolidation/refinance, home improvement, relocation assistance or medical expenses

  • Loan amounts

  • terms

  • Credit needed

  • Assembly costs

  • Prepayment penalty

  • Late charge

LightStream Personal Loans

  • Annual Percentage Rate (APR)

    2.49% to 19.99%* when you sign up for autopay

  • Purpose of the loan

    Debt consolidation, renovation, car financing, medical expenses, marriage and more

  • Loan amounts

  • terms

  • Credit needed

  • Assembly costs

  • Prepayment penalty

  • Late charge

However, it is extremely important to have discussions about money before getting married so that each partner is clear about what their financial situation might look like.

“The conversations couples have about debt and finances are just as important as discussions about other topics like starting a family,” Dr. Muradian says. “Before marriage, couples need to know if their partner is in debt and understand how their debt arose. Additionally, knowing their plan for repaying their debt is equally important as it can impact their financial planning as well. that couple.”

Check out Select’s in-depth coverage at personal finance, technology and tools, The well-being and more, and follow us on Facebook, instagram and Twitter to stay up to date.

Editorial note: Any opinions, analyses, criticisms or recommendations expressed in this article are those of Select’s editorial staff only and have not been reviewed, endorsed or otherwise endorsed by any third party.

32% of Americans are hiding a financial secret from their partner, according to a survey https://blogcampcee.com/32-of-americans-are-hiding-a-financial-secret-from-their-partner-according-to-a-survey/ Thu, 10 Feb 2022 19:19:24 +0000 https://blogcampcee.com/32-of-americans-are-hiding-a-financial-secret-from-their-partner-according-to-a-survey/

A new TD Bank survey claims nearly a third of couples experience financial infidelity, such as hiding a major purchase or having secret debts. (iStock)

Just in time for Valentine’s Day, TD Bank revealed how couples in serious relationships spend – and hide – their money in its seventh annual Love and Money Survey.

Nearly a third of Americans (32%) are hiding a financial secret from their romantic partner, an 11% increase from last year. The most common financial secrets are a big purchase (40%), large credit card debt (18%) and a hidden bank account (13%).

Most common financial secrets hidden from a partner

It should be noted that half (50%) of partners in an unhappy relationship experience financial infidelity, compared to a third (32%) of those in a happy relationship, according to the survey. TD Bank spokeswoman Alissa Van Volkom said “when debt, financial secrets or unemployment enter a relationship, both partners need to stand firm on what matters to them.”

“The pandemic has shown that you can’t put a price on a lot of things – financial health, stability and happiness included,” Van Volkom added.

Keep reading to learn more about managing money with your partner, including how to be more transparent with your financial behavior. You can visit Credible to compare rates on a variety of financial products, so you and your partner can achieve your financial goals together.


How couples can become more transparent about money management

Keeping secrets in a relationship can sow guilt and embarrassment – ​​and financial infidelity is no exception. Being more honest with your spouse about your shared finances can help build trust with clear financial goals.

“Couples should regularly discuss three things: how they’re managing their budget, unexpected or upcoming expenses, and rising debt,” Van Volkom says.

Read more in the sections below for tips on how to have open conversations with your partner about financial transparency.

Discuss your budget

Although creating a shared budget might not seem like the most romantic date idea, it can help you and your partner see how you manage your income and expenses. Tracking your spending can help you identify areas where you might be overspending and find opportunities to increase your savings.

An easy way to streamline your budget is to download a finance app that automates the process. Budgeting apps can be linked to your bank accounts to give you a clear picture of your financial situation. More than half (57%) of Americans have financial apps on their smartphones, according to the TD Bank survey.


Plan for unexpected expenses

Among Americans who hide a financial secret from their partner, the most common is that they hide a large purchase (40%). For couples with shared finances, making a major purchase without your partner knowing about it can make budgeting and tracking expenses difficult.

One way to plan for unexpected expenses is to create an emergency fund that covers about three to six months of expenses. You can start your emergency fund by setting up a direct deposit of your paycheck into a high-yield savings account. You can compare savings account rates on Credible for free without affecting your credit score.


Make a plan to pay off your debts

Nearly a fifth (18%) of survey respondents with financial indiscretion are hiding secret credit card debt. This is problematic because revolving credit card debt that is carried over for a month comes with high interest rates, making it difficult to pay it off.

When discussing a debt management plan with your partner, consider the following strategies for paying off credit card balances:

  • Snowball method or debt avalanche. The debt snowball method is to pay off the credit cards with the lowest balances first, while the debt avalanche strategy is to pay off the debt with the lowest interest rates first. the highest.
  • Credit card balance transfers. Applicants with very good to excellent credit may qualify for a 0% APR introductory period, effectively allowing you to pay off credit card debt without interest. You can compare balance transfer card offers from several credit card companies at once on Credible.
  • Debt consolidation loans. It is a type of unsecured personal loan used to pay off high-interest debt in fixed monthly installments at a lower rate. Interest rates on two-year personal loans are currently at historic lows, according to the Federal Reserve.

You can visit Credible to learn more about debt management and compare personal loan interest rates. This way, you and your partner can make an informed decision on how to pay off credit card debt.


You have a financial question, but you don’t know who to contact? Email the Credible Money Expert at moneyexpert@credible.com and your question might be answered by Credible in our Money Expert column.

No-show interview and the myths of Marcos https://blogcampcee.com/no-show-interview-and-the-myths-of-marcos/ Sun, 06 Feb 2022 13:18:25 +0000 https://blogcampcee.com/no-show-interview-and-the-myths-of-marcos/

It is disappointing that Bongbong Marcos chose not to participate in Jessica Soho’s presidential interview last month. Although I realize he has a lot to avoid, I never thought of him as a man who would easily back down from public discourse. His refusal to participate confirmed two of my hypotheses about him. First, that he is unable to defend his family’s wealth, his human rights record and his personal achievements in a serious interview. And two, that he would rather let the trolls fight their wars for him through half-truths and misinformation.

What are the issues that Marcos Jr. can’t seem to defend? What questions does he hesitate to answer?

Thanks to well-produced videos, memes and posts on social media, certain myths have formed about the presidency of Ferdinand Marcos and Marcos Jr. himself. Some of these myths cannot be defended in an intelligent fact-based interview.

Myth #1. That the 1970s, under martial law, were the country’s golden age. It was a time when the country was prosperous and poverty did not exist.

Here are the facts. During the 21 years that Marcos was in charge, the economy only grew at an average rate of 3.8%. We were left behind by Thailand and Malaysia whose economies grew by 6-7%.

The peso depreciated from a steep 3.92P to a US dollar in 1965 to 19.99P in 1986 – a loss in value of 500%; real wages (purchasing power) fell from 100 P/day in 1966 to only 27 P/day in 1986; per capita income has only tripled in 21 years, while it has increased tenfold in Thailand and Malaysia; unemployment was 7.2% in 1965 and jumped to 33% in 1986; poverty rates were 7.2% in 1965 and reached a staggering 44.2% in 1986.

At the time Marcos was ousted, the Philippines was among the poorest countries in Asia with lower per capita income than Japan, Singapore, Brunei, Macao, Hong Kong, Taiwan, South Korea, Malaysia, Maldives, Thailand and even Mongolia. .

We have lost competitiveness in most of our industries. Martial law gave Marcos extraordinary legislative and executive powers which he used to sequester successful industrial enterprises such as automobile manufacturing, steel mills, and textile mills. These companies were taken over by cronies, not all of whom managed to maintain their profitability. The failure was partly due to corruption and partly due to a simple lack of management expertise. Marcos selected his acolytes not for their talents but for their loyalty.

In agriculture, the cronies were driven to establish monopolies to give the dictator absolute economic control of the sector. As court records indicate, Danding Cojuangco controlled the coconut industry, Juan Ponce Enrile controlled logging, and Roberto Benedicto controlled sugar. These industries eventually collapsed as well.

The era of martial law was not the golden age of the Philippines, rather it was the time of our great fall from one of the richest countries in Asia to one of the poorest.

Myth #2. That the Marcos era was the pinnacle of infrastructure.

Here are the facts. With borrowed funds, Marcos established the Construction and Development Corporation of the Philippines (CDCP). While it is true that roads, bridges and classrooms have been built by the CDCP, significant sums have fallen into personal pockets. It was the same story for the electricity sector, the housing sector and the transport sector.

History further shows that infrastructure projects were often over-engineered, designed to extract maximum commission or kickbacks.

Prestige projects like the Cultural Center, the Coconut Palace and the Folk Arts Theater projected the image of progress but had little or no economic impact. They were built to create an illusion of prosperity, all financed by debt.

Speaking of debt – from a foreign debt of just $600 million when Marcos took office in 1965, foreign bonds rose 43 times to $26 billion in 1986. In October 1983, the Marcos government exhausted its dollar reserves and had no choice but to declare a debt moratorium. To keep the economy afloat, Marcos resorted to short-term loans at high interest rates. In 1986, our debts were so massive that debt service alone accounted for half of the country’s exports. This led to a currency crisis and the need to further devalue the peso.

Economists agree that the Philippines’ economic collapse of the 1980s was due to Marcos’ debt-driven economic policy. Heavy indebtedness was also the reason that successive governments in the 1990s and early 2000s were unable to invest much in infrastructure and social services.

Myth #3. Marcos fought the oligarchs.

The fact is that Marcos was the oligarch of oligarchs. In 1998, Imelda boasted of a Applicant interview, and I quote: “We own practically everything in the Philippines, from electricity, telecommunications, airlines, banks, beer, tobacco, newspaper publishing, television stations, transport shipping, petroleum, mining, hotels and resorts, to coconut milling, small farms, real estate and insurance.

Successful businesses have been sequestered by Marcos from hard-working entrepreneurs. But because the Marcoses and their cronies had little management expertise, these companies ended up going bankrupt. This is why the Philippines has lost its economic competitiveness in multiple industries.

Myth #4. Marcos Jr. is the most prepared and trusted presidential candidate.

We all know that Marcos Jr. lied about his college degrees, lied in court about his family’s ill-gotten wealth, lied about human rights abuses, and failed to file his tax returns. How can a liar and tax delinquent be considered trustworthy?

As for its governance capabilities, the best benchmark is to look at Ilocos Norte. Marcos Jr. and his kin controlled Ilocos Norte for decades. Yet it remains one of the poorest regions of the country where the majority live hand to mouth. A quick look at NEDA statistics on regional GDP proves it. They don’t have world-class industries to speak of. The Bangui wind farm, for which Marcos Jr. takes credit, was not built by him but by Northwind Power, a subsidiary of Ayala.

Interviews and debates are meant to reveal a candidate’s true courage. They are intended to clarify doubts and illuminate gray areas. By refusing to be interviewed, it’s clear that Marcos Jr. prefers to live in the shadows — relying on trolls to spread myths..

Andrew J. Masigan is an economist


Facebook@AndrewJ. Masigan

Twitter @aj_masigan

]]> Should you take out a bill consolidation loan? https://blogcampcee.com/should-you-take-out-a-bill-consolidation-loan/ Fri, 04 Feb 2022 19:31:14 +0000 https://blogcampcee.com/should-you-take-out-a-bill-consolidation-loan/

Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own.

Taking out a bill consolidation loan can make it easier to manage your bills and potentially lower your monthly expenses. Learn more. (Shutterstock)

If you’re having trouble coping with multiple debts, bill consolidation could be a solution. Bill consolidation is the process of combining multiple bills (like medical bills and credit card bills) into one debt by taking out a new loan.

A personal loan to consolidate your bills could help you get a lower interest rate if you’re burdened with high-interest debt. But before applying for this type of loan, you should consider all the pros and cons.

What is an Invoice Consolidation Loan?

A bill consolidation loan, also known as a debt consolidation loan, is a personal loan that you use to pay off your existing debt. If you are approved for one, a lender will give you a lump sum that you can then use to pay your bills. Or, the lender can use the funds to pay your creditors directly. Then you will start making payments on the new loan with one monthly payment.

Some benefits of taking out a debt consolidation loan include reducing the number of bills you have to keep track of and potentially reducing your interest rate and monthly payment amount. But some lenders may charge an origination fee for processing the loan, which is usually deducted from your loan amount. Before accepting the loan, make sure you fully understand all fees.

When does a bill consolidation loan make sense?

Signing up for bill consolidation could be a good financial decision in the following scenarios:

You want a lower monthly payment

If you’re having trouble keeping up with your monthly payments, loan consolidation can reduce the amount you pay each month. This could be the case if you get a lower interest rate or replace an existing debt with a loan with a longer repayment period. Remember that choosing a longer repayment period will likely mean you’ll pay more interest over time.

You want a single payment

Coping with multiple bill payments can be a challenge. And if you miss a payment, it could lower your credit score and lead to late fees. A bill consolidation loan combines your monthly payments into one. As a result, you may be less likely to make late payments, which could save you money and help avoid damaging your credit.

You want a lower interest rate

If your credit score and finances have improved since you took on debt, you may qualify for a lower interest rate with a bill consolidation loan. This could help you save money on interest and get out of debt much faster, especially if you’re consolidating high-interest credit card debt.

How to consolidate your debts with a bill consolidation loan

If taking out a bill consolidation loan is right for you, here’s what you should do to consolidate your debt:

  1. Make a list of your debts. Create a list of all the debts you want to consolidate. Add the total to find out exactly how much you need to borrow.
  2. Compare lenders. Research and compare different lenders. This will help you find the lowest rates and the best option for your situation.
  3. Get prequalified. Prequalify with as many lenders as possible to get an idea of ​​the rates and terms you could receive if approved.
  4. Choose the best loan for you. Once you’ve compared several loan options, choose the best lender for your situation.
  5. Submit a loan application. After choosing a lender, submit an official loan application. The lender will look at your credit score, income, debt-to-income ratio (DTI), and other key factors to determine if you qualify.
  6. Receive your loan funds. If you are approved for a loan, your loan funds are usually deposited into your account after you sign your loan agreement. This usually takes one to seven business days, depending on the lender.
  7. Pay off your debts. Use the loan funds to pay off the debts you want to consolidate, if your lender doesn’t pay your debts directly.
  8. Make payments on your bill consolidation loan. Repay your loan as agreed – remember to make payments on time to avoid possible late fees. Sign up for automatic payment, if possible, or use a bill management app to find out when your payment is due.

What to consider when choosing a lender

When shopping for a personal loan, it’s important to compare lenders and rates. This helps you find the best deal available. Here are some things to consider when doing comparison shopping:

  • Annual percentage rate – The APR of your loan takes into account your interest rate plus any fees. This is an important number because it helps you understand the true cost of the loan.
  • Costs – Origination fees, late fees, and prepayment penalties are all common types of personal loan fees. If possible, choose a lender that has no origination fees so that any funds you receive are used to consolidate your debts.
  • It’s time to finance — Consider how long you will need the loan funds. Some lenders can issue your funds the next business day, but others can take much longer. If you need your money quickly, choose a lender known for its speed of financing.
  • Minimum credit score — Different lenders have different minimum credit score requirements. While some lenders will approve borrowers with fair credit, other lenders will require you to have good to excellent credit.
  • Advantages of the lender — Many lenders offer additional perks, such as free credit monitoring and tailored monthly payments. These may be a factor in your decision.

Bill Consolidation Loan FAQs

What types of debt can I consolidate?

You can use your loan funds to consolidate several types of debt, such as credit card bills, utility bills, payday loans, and more. But before taking out a debt consolidation loan, check with the lender if they have any usage restrictions for borrowers. Some lenders may prohibit you from using personal loan funds to repay a student loan.

Should I consolidate all my debts?

You are allowed to choose which debts you want to incorporate into a debt consolidation loan. Consolidating all your debts may not be possible depending on the loan amount you receive. Also, consolidating certain debts may not make sense if it results in a higher interest rate.

Does debt consolidation hurt my credit rating?

When you apply for a debt consolidation loan, a lender performs a thorough credit check to review your credit history. As a result, your credit score could temporarily drop by up to five points, according to FICO. But if you pay off your loan on time, it will add a positive payment history to your credit reports, which could increase your score over time.

Bill Consolidation Loan Alternatives

When it comes to simplifying your bills and potentially lowering your interest rate, a debt consolidation loan isn’t your only option. Here are some alternatives to consider.

Balance transfer credit card

Looking to consolidate your credit card debt? A balance transfer credit card lets you transfer a balance from one credit card to another, and many offer an introductory interest rate of 0% or low for a certain period of time.

By taking advantage of one of these offers, you could save a lot of money on interest. The downside is that once the promotional period expires, you’ll have to pay the standard credit card interest rate on any remaining balance. Additionally, you may have to pay a balance transfer fee, which typically ranges from 3% to 5% of the transfer amount.

Student Loan Refinance

If you have student loans and want to consolidate them, student loan refinancing is probably a better option than a bill consolidation loan. When you refinance your student loans, you take out a private student loan to pay off your existing federal or private student loans.

If you have good credit and a decent income, you may qualify for a lower interest rate. The downside is that if you refinance your federal student loans, you will lose access to federal benefits, such as income-based and forbearance repayment plans.

The debt avalanche method

If you don’t want to consolidate or refinance your debt, you can use a debt repayment strategy to effectively eliminate your debt.

With the debt avalanche method, you first pay off your debt at the highest interest rate. You are putting any extra money you have on this debt while making the minimum payments on your other debts. Once that debt is paid off, you move on to the debt with the next highest interest rate.

One advantage of this method is that it helps you save the most interest. But it might take you a long time to pay off your debt with the highest interest rate if it is a large amount.

The Debt Snowball Method

The debt snowball method is another popular method you can use. With this repayment strategy, you pay off your debt with the smallest balance first. This means investing any extra money in this debt while making the minimum monthly payments on your other debts. Once that debt is eliminated, you move on to paying off the debt with the next smaller balance.

One of the main advantages of the snowball method is that you will eliminate your small debts more quickly. When you see this progress, it can motivate you to keep reducing your debt. But the downside is that you might pay more interest with this strategy because your high-interest debts might not be the first ones you focus on.

Home equity loan or home equity line of credit

If you’re a homeowner, you may be able to tap into the equity in your home by taking out a home equity loan or a home equity line of credit (HELOC).

Since these loans are secured by your home, they may come with lower interest rates than you would get with an unsecured personal loan. But you risk foreclosure on your home if you fail to repay the loan.

What to know before borrowing https://blogcampcee.com/what-to-know-before-borrowing/ Tue, 25 Jan 2022 22:36:00 +0000 https://blogcampcee.com/what-to-know-before-borrowing/
  • Payday loans usually come with very high interest rates and are often based on your income.
  • Personal loans are long-term installment loans that generally have lower rates than payday loans.
  • Payday loans are always a worse option than personal loans due to their high rates.
  • Read more stories from Personal Finance Insider.

Taking out a loan can be a useful way to pay for expenses that you might not otherwise be able to cover at the moment. You may want to borrow to cover medical bills, home renovations, or maybe even a vacation.

The most common forms of loans for quick cash are payday loans and personal loans, although one is a much better option than the other.

payday loan vs. Personal loan: In one look

  • A payday loan is a short-term, high-cost unsecured loan with principal as part of your next paycheck.
  • A personal loan is an unsecured long-term loan with higher minimum loan amounts and lower interest rates.
  • You can use either money pretty much however you like; other than that, they have few similarities.

Real Simple’s Money Confidential podcast host Stefanie O’Connell Rodriguez recommends avoiding payday loans whenever possible.

“It’s an option of last resort, like avoiding it at all costs,” says O’Connell Rodriguez. “If you’re considering something like, ‘OK, do I use a payday loan or a credit card or a personal loan,’ understanding that a payday loan is the option of last resort might help make that decision a little easier.”

What is a payday loan?

Payday loans are often for small amounts of money, usually $500 or less. They are designed for borrowers who are in need – perhaps you need money to cover an unexpected medical bill or a damaged item. Payday loans provide immediate funds, come with extremely high interest rates, and are generally based on your income, not your credit history.

“Payday loans come at a price,” says Kendall Clayborne, Certified Financial Planner at SoFi. “They can have interest rates over 600%. Such high interest rates, not to mention the other associated fees, can quickly lead to situations where you end up falling behind on the loan and have to borrow money. more and more to pay it comes back.”

Payday loans are never a better option than personal loans. They come with extremely high interest rates and are often predatory in nature.

“If someone asked me personally, I wouldn’t recommend a payday loan under any circumstances,” says Annie Yang, strategic financial advisor at Real Estate Bees.

You can get a payday loan by going to a physical lender or through an online lender. When you take out a payday loan, you often agree to authorize the lender to withdraw funds from your bank after your check has been deposited. The lender may request a signed check in order to receive the funds soon after your next paycheck.

what is a Personal loan?

With a personal loan, you ask to withdraw a specific amount of money. The lender will show you available offers based on financial factors such as your credit score, debt-to-equity ratio, and ability to repay the loan. You can use a personal loan for a variety of reasons, including home renovations, medical bills, and vacations.

“Personal loans come with a credit check to qualify, but will give you a longer term to pay them back,” says Clayborne. “Your repayment schedule can be less stressful, giving you the flexibility to pay over a few years rather than a few months. With a longer repayment term, your personal loan can be easier to manage than a payday loan. .”

Personal loans are always a better option than payday loans because they come with lower interest rates and the loan decision is based on your ability to repay.

Online lenders, banks and

credit unions

will give you money that you will repay over a fixed period, say a year or five years. Personal loans are almost always unsecured, meaning they don’t require collateral – like a house or car in the case of a mortgage or car loan – to be received. Most personal loans have fixed interest rates that remain the same for the life of the loan.

Whether you decide to take out a loan or not, O’Connell Rodriguez advised you not to judge yourself too harshly based on your financial situation.

“Have compassion for yourself,” O’Connell Rodriguez said. “Understand that where you are, if you’re in an emergency, if you’re in debt, if you’re in a really bad financial situation, it doesn’t say anything about who you are, it doesn’t say anything about what you’re capable of. of, or who you are. It doesn’t define your goodness or your dignity.”