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Desperate for a Personal Loan? Beware of Rash Decisions

[Jan 29, 2010.]

 

A lot of people are desperate for money right now, and seeking an unsecured personal loan as a solution to the problem. Unfortunately, desperation does not improve your chances of securing a personal loan at a good interest rate and with a manageable repayment schedule.

The most important thing, for people who are feeling desperate for money, is to take a deep breath and then take some time to research the options. Rash decisions can cause loss of money as well as peace of mind, which is something that is priceless.

Compare Personal Lenders Online

One of the best ways to start looking for an unsecured personal loan is to research a few online personal lenders and see what the interest rates and terms are. Many lenders require documents such as paystubs from a job or a copy of a bank account statement, but some online personal lender require very little documentation and may not even do a credit check before issuing a personal loan.

Additionally, the U.S. Congress has instituted restrictions on high interest lenders, so this has put a crimp in the style of credit card companies and other high interest lenders. The online personal lenders that do remain in the marketplace are thus usually pretty respectable outfits.

Beware of Loan Sharks

Speaking of pretty respectable outfits, one group that does not belong to that category is loan sharks. As noted in this article about loan sharks in the U.K., lenders who take advantage of desperate people are doing a lot of business right now.

That is sad. But it can be prevented by thinking carefully before choosing a personal loan. Also, prospective borrowers may want to consider where the funds are going. How badly do you need the funds? For example, are you trying to make rent or just save a car that you can't afford anyway?

This may seem like a frank statement, but this the type of no-nonsense viewpoint you need to adopt so that desperation does not lead to rash personal loan decisions like going to a loan shark.

Time to Consider Ditching Some Stuff?

Many people are loaded down with bills and feel like they're drowning. One option is to seriously consider getting rid of some stuff. Turning in the unaffordable car, for example.

Ideally, a personal loan is a bridge to an affordable life, not merely another bill added to the pile.

 

About Author:

Andrew Freiburghouse is a writer and businessman. He has worked as a magazine reporter, tax preparer, screenwriter, copywriter, and loan officer. He graduated from Santa Clara University in 1999 with a B.A. in English. Andrew was born and raised in the City of Los Angeles.

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