Bad Credit Personal Loans
Debt Handling - What's the Right Amount of Debt?
No 'one-size-fits-all' recommendation is possible when considering the right
amount of debt to assume. But that doesn't mean there are no good guidelines at all.
Naturally, credit card companies and other lenders are happy to make available as
much money as they think their borrowers will repay. They take risks, but those are calculated
risks. They look at default rates, current interest rates and carefully review credit history when
they make loans. Borrowers can benefit by following some aspects of their strategy.
Before taking out new credit, consider the odds that you will have to default on
repayment. Don't factor in to your decision the possibility of deliberately defaulting or filing
bankruptcy. You'll find the consequences are rarely worth it and that should be reserved as a very
You can factor in expected increases in income - banks and other business do -
but you should be very sure you're actually going to receive it. A promised raise or hoped for
income from a stock sale is far from guaranteed money.
Look at current interest rates and make a prediction about where they are headed,
businesses do. That's a very difficult thing to be confident about, but general trends are not
random. Look at bonds, futures and other indicators. If 6% bond option prices are going down, many
pros are betting interest rates will rise to above that in the future. These represent the bets of
professionals about the future direction of inflation and interest rates.
Look at your own credit history the same way a bank would. Try to see it from
their perspective. Would you loan yourself $10,000 at 7% for 48 months? Avoid rationalizing late
payments or defaults. You may have had a legitimate reason, or you may not yet have developed the
resources (inner and financial) to repay all your debts on time.
Consider your total income and expenses realistically. You may badly want a new
car, but can you afford an extra $500 per month without sacrificing essentials while still meeting
your current obligations? Be honest with yourself.
No one can decide for you whether it's worth assuming an ongoing $200 per month
credit card payment at 12% in order to have an item you've been longing for. You may value having
the item today more than you value the extra money it will cost you over what you save by saving
But you should at least think about it. Impulse buying is the most common way
credit card users get in over their heads, financially speaking. Project the possibility that if
you wait (and saved for, say, a year) you will have both the item and something else you can
purchase with the money you would have paid in interest.
Evading the fact, if it is a fact, that you can't really afford the payments is
the surest way to get into financial trouble. That kind of trouble can take months or years to get
out of. Think long term, be realistic, and you'll be able to decide what is the right amount of
debt for you.
If you have bad credit history and wish to apply for a personal loan, we have
someone waiting to answer you're loan request.
The personal bad credit
loan could be for that emergency operation, much needed car repairs, or
those unexpected expenses.
We are here to help, no harm in asking for a bad credit
personal loan when times are tough, banks may say no, but that's where we come in.
All enquiries are treated with utmost respect for your situation and we will get
back to you promptly.
When using our online assessment form, your enquiry is NOT recorded with any
Most website applications with other companies actually have your enquiry
recorded - which would adversely affect your credit rating if you did not proceed with them.
This is not the case when you submit your loan enquiry with us.
Personal loans can really help in a pinch. If your savings
are low and your car breaks down, such a loan can patch up your life here.
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