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Identifying the Ultimate Personal Loan - Articles Surfing
One's misfortune has become some organization's profit. As the poverty stricken and work class continue to delve deeper into the pits of debt, businesses such as lending institutions and debt management firms and insurance agencies are turning one's hard luck into their fortune. The recent reports of the unethical practices have gained much controversy.
Quite often, loan companies and credit counseling organizations employ high-pressure methods in targeting the indebted. For instance, Citigroup was accused of targeting low scoring and unemployed consumers. The deliberate tactics were noted as coercion to sign loans with inflated interest rates or to purchase "insurance" on loans * after the fact. One such case occurred with a woman who ended up paying for 5 types of insurance worth one thousand dollars on a $5000 personal loan.
Another notorious tactic from Commercial Credit was the routine of charging an annual interest rate (APR) over 40 percent. The drawback of personal loans is how consumers are seen as a cash cow to lending companies and other financing firms. The supply and demand of the cash deficit lures many Americans into an infinite cycle of vast debt.
Finding the Loan
Despite, the negatives aspects of personal loans, consumers in need of a loan can find the ultimate loan. Aside from banks being in business to make profit margins, it's a way of life. The alternative for beating the cycle of financial depravity commences with researching the ultimate loan. Here are a few steps to consider, before you look for a personal loan:
Personal Loan Debt Test
After reviewing your current financial status, answer the following questions to determine if you are really in need of a personal loan or you need to refine your spending behavior into a strict budget.
If you responded no, to most of the above questions, tightening your budget and meeting goals is vital to you digging your way out of debt. However, if you answered yes to four or more of the questions, then a personal loan is only inevitable. A monetary deficit, over extending credit cards coupled with inability to manage * financially during a dire emergency are indications that a personal loan and a change of spending behavior are critical.
At the same token, consumers require a personal should not become so bent set on obtaining approval that they lose sight of a bad loan.
Use the following checklist to identify the ultimate personal loan:
Obviously gaining approval for the ultimate personal loan will depend on your payment history and credit score. However, if your credit score is in the mid 600s, you should qualify for an unsecured loan. Remember, that a rate of 11 percent or more should be anticipated. Nevertheless, the ultimate personal loan should not exceed more than 18 percent in interest fee charges.
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Copyright © 1995 - Photius Coutsoukis (All Rights Reserved).
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