loans and credit

This is a guest post from Thanh Kess, a professional specializing in personal finance, bankruptcy, and credit repair. To learn more about the action you should take if you are denied a loan because of outstanding debt, visit www.ClearBankruptcy.com.

There will undoubtedly come a time (or many times) in your life where you find that you are short on cash when you need it the most. It may be an unforeseen medical bill, a semester of college, a car accident, or even a vacation that spurs your desire to procure borrowed funds. One standard go-to for such situations is the personal loan. A personal loan is different from a secured loan in that you are not required to put up a collateral, and you do not have to define the purpose of your loan – it can be used for anything that you deem necessary. If you find that your personal loan application is denied, it is important that you have a back-up plan. Here are some things you can do if you are denied a personal loan:

Ask why. Make sure you get clear-cut reasons for your denial. You may find that you can compensate for these factors by tweaking your application a bit or providing further proof of your credit worthiness. If not, you will at least know what you need to do in order to improve your chances of getting an approval the next time around.

Apply somewhere else. Just because your application was denied by one lender, it does not mean that you can’t get an approval at another lender. There is no substitute for trying again, elsewhere.

Improve your credit. Make it a point to correct credit report blemishes. This may be as simple as reporting inaccurately recorded information in order to have it updated on your report, or it may require that you settle some judgments. Either way, bettering your credit is your best bet for ensuring your ability to procure a personal loan when the need suddenly arises.

Try other routes. Payday advance loans and car title loans are by no means the ideal option, but they are available to those who really need it. If you’re in financial dire straits and have nowhere to turn, it may be time to turn to the hard money lenders.

Seeing that awful word, “denied,” in response to your personal loan application can be a horrifying experience if you’re in a situation where you really need the money. If you are forced to come face to face with that dirty word, don’t worry – all is not lost. You’ll just have to put some effort into making your situation work, and that may involve alternative options.

Posted by: Tami     Tags:

The US isn’t the only country in significant debt. While it may be in the most debt, there are a handful of countries around the world that have their books off balance too. The following twelve countries lead the world in external debt. The amount of their debts has been figured as the total private and public debt owed to nonresidents payable in foreign currency, goods, or services:

• The United States, which has a debt of $13,450 billion; but, as has been noted, “The US is such a rich country that the worst economic crisis since the Great Depression has scarcely touched its spend-as-usual assumptions.”
• The United Kingdom, which follows, has a debt of $9,088 billion as of 2009;
• Germany has a debt of $5,208 billion as of 2009;
• France has a debt of $5,021 billion as of 2009;
• Netherlands has a debt of $3,733 billion as of 2009;
• Spain has a debt of $2,410 billion as of 2009;
• Ireland has a debt of $2,287 billion as of 2009;
• Japan has a debt of $2,132 billion as of 2009;
• Luxembourg has a debt of $1,994 billion as of 2009;
• Switzerland has a debt of $1,339 billion as of 2009;
• Canada has a debt of $833 billion as of 2009;
• Austria has a debt of $808 billion as of 2009.

At the end of the year 2009, the real GDP per person in the United States stood at $42, 189, a 4 percent decline from the historic high ($43,926) in 2007–but still 5 percent higher than at year’s end in 2000 ($39,750). At the end of 2009, the average American’s disposable income stood at $32,599, a mere $80 from the historic high ($32,679) in 2007. In 2009, average American net wealth (per household) stood at $455,420, down 10 percent from the bubble-boosted historic high ($500,019) in 2000, but still high by any international standard. Also in 2009, the US Poverty Rate had increased only marginally, from 12.5% of families to 13.2 percent.

If you look at the US economy just in terms of the national debt as a percentage of the GDP, then the highest peak was during the presidency of Harry Truman, with a peak of 100% during the year 1950.  It then began a sharp descent during the Eisenhower years, reaching a low of around 50% in 1960. A steady decline in the debt as a percentage of the GDP characterized the Kennedy, Johnson, and even part of the Nixon era, hovering below 45% in 1970. The percentage declined even further during the Ford and Carter administrations, reaching a record low of around 40% in 1979. The percentage of the GDP then began a steady ascent during the Reagan era, capping of the 1980s at around 50%, and continued to climb through the George Bush Sr. administration, hovering around 55%-60%. The percentage of the GDP remained fairly steady during the Clinton administration, remaining around the 55%-60% rate. The percentage of the national debt as a GDP then began to rise during the George W. Bush administration, capping off at around 65% in 2004.

Posted by: richhoward     Tags:

Articles – Personal loans for bad credit are available for seeking to obtain financial assistance for short term help or purchases. The . . .

All Infographics – Comparision of private industry and Government in respect to medical and retirement benefits, life insurance and paid leave. Employment Benefits . . .

The misery index was initiated by economist Arthur Okun, an advisor to President Lyndon B. Johnson in the 1960s. It is simply the unemployment rate added to the inflation rate. It is assumed that both a higher rate of unemployment and a worsening of inflation together create economic and social costs for a country. A combination of rising inflation and more people out of work implies a deterioration in economic performance and a rise in the misery index.

The misery index is organized by both decade and by presidential term. It begins in 1948 with the Truman Administration, which was in office from 1948 through 1953. During Truman’s term was the lowest recorded misery index, at 2.97% in July of 1953.

The Eisenhower administration encompassed the late 1950s, from 1953-1960. During that period of relative peace and prosperity, the misery index never crept above 10%, in fact, it stayed around 7% to 8% for most of President Eisenhower’s term.

The short-lived Kennedy administration, from 1960-1963, was also a relatively peaceful and prosperous time, and the misery index hovered between 6% and 7% during those three years as well.

The Lyndon Johnson administration followed John Kennedy’s assassination and one subsequent reelection, lasting from 1963 until 1968. During this time, which saw increasing political and social unrest due to the escalation of the Vietnam War, the misery index remained surprisingly low, hovering around the 6%-7% that characterized the Kennedy administration.

The Nixon administration lasted until 1974, when President Nixon resigned, and was followed by the Ford administration, which lasted through 1978. This period saw the end of the Vietnam War and the oil embargoes of 1973-1974, which caused the misery index to shoot up between 16% and 17% during those two years, a record high at that point in time. For the rest of the Ford administration, the misery index hovered around 13%.

The Carter administration, which lasted from 1978-1981, experienced a surge in the misery index, hitting a record peak of 21.98% in June of 1980, but then fell to nearly 18% by the next year.

The Reagan presidency, which lasted most of the decade of the 1980s, witnessed a gradual tapering of the misery index. The index hovered above the 10% mark except in 1986, when it dipped to around 9%. The George Bush Sr. presidency followed the Reagan era, and both administrations saw the Savings and Loan Crisis of 1987-1992. This financial crisis did not drastically alter the misery index, which hovered between 9% and 11% through most of George Bush Sr.’s administration.

The Clinton administration lasted through most of the 1990s through the turn of the new century. The misery index experienced a steady decline, reaching a low of 6% in 1997, a return to the prosperity of the Kennedy and Johnson eras. However, the rate did increase again, peaking to nearly 8% in 1999.

The George W. Bush administration lasted most of the 2000s, encompassing the Great Recession which began in 2007 and seems to be continuing through 2010. During the first part of his presidency, the misery rate hovered around 7% to 8%. The misery rate peaked at between 9% and 10% in 2008. It remains to be seen what the misery rate will be during the Obama administration.

Posted by: shane     Tags:

All Infographics – We’re all well aware of the importance of maintaining a strong credit score, particularly in the current economic environment. We also know our government has a history of racking up piles of debt. This graphic combines those two facts and shows us what the credit score of the government would look like.

All Infographics – We’re all well aware of the importance of maintaining a strong credit score, particularly in the current economic environment. We also know our government has a history of racking up piles of debt. This graphic combines those two facts and shows us what the credit score of the government would look like.

All Infographics – Comparision of private industry and Government in respect to medical and retirement benefits, life insurance and paid leave. Employment Benefits . . .

All Infographics – We’re all well aware of the importance of maintaining a strong credit score, particularly in the current economic environment. We also know our government has a history of racking up piles of debt. This graphic combines those two facts and shows us what the credit score of the government would look like.

Personal loan rates can be used for just about anything and their interest rates tend to be higher than those taken out on a home are. This is because a personal loan does not require collateral. A no-collateral loan means the lender has no specific item to lay claim to should the borrower default.  While one can take out a personal loan for just about anything, according to a recent survey by Prosper.com, 49% of people with these types of loans are using them for debt consolidation. This gives them one payment, instead of several.  Another popular use for these unsecured loans are for enhancing a property or paying for important things such as education.  16% of borrowers are using their personal loan to get their business venture off the ground.

Because no collateral is necessary, it is a relief to those who may worry about the possibility of losing their home or other personal property should they default. When requesting for the loan, borrowers use their income as proof they will be able to pay. For those that already have a good relationship with their financial institution, the lender may actually send out an invitation to apply.  Today’s interest rates for personal loans are around 10%, but according to Rebuild.com, if you have poor credit your rates maybe be around 25%.

Before borrowing online became an option, individuals would go to their bank or credit union in person and fill out an application. Now, it is still possible to apply with a bank, but there are also websites that will match individuals with lenders online. Borrowers never have to leave home.

Not all personal loan rates are created equal. Payday advances are short-term solutions to those in need of quick cash. The rates for payday advances today generally fall under a dollar amount per every hundred borrowed. So instead of a percentage, it might be $12 owed per each $100 loaned. One may request these types of loans online, in a check-cashing center or payday loan center. With proof of income, the borrower is given a date to repay. This date usually coincides with their next payday. The amount varies, but never runs more than a few thousand dollars. Applicants receive the money in a very short time. It might be in as little as a few minutes, but rarely as long as 24 hours. It may be paid at the center or deposited directly into the bank account of the borrower.

Personal loan rates always have a higher rate of interest over loans that are used to purchase an item. The reason for this unfortunate fact is that there is nothing to secure the loan except for the signature of the signer. A bank has to take the customer’s word that they will repay. And the only thing that backs up the customer’s word is a FICO score. So it really is no surprise that a bank will charge higher personal loan rates to ensure that they get their money back in one form or another.

The first thing to do when looking for a personal loan is to investigate the current rates. No two lenders will have the same interest rates which is why it is a good idea to look around first. Do not rely on an Internet search alone. There are still local banks in existence that may not advertise their rates for various reasons. Even large banks in a region do not always put their information online as well. And do not ignore a credit union as a source for a personal loan. Certainly this is a lot of work to do for something that is relatively simple. It truly never hurts to do footwork in advance. The banking industry is extremely chaotic in this era of post-regulation and have no problem putting all kinds of catches on the money they lend. Why give them the satisfaction of gaining another sucker when it can be avoided with some research?

Interest is not the only item that can raise the cost of personal loan rates. Fees of all stripes can be attached at the time of signing, then be amortized into the monthly payments. This may seem unfair to the consumer, but he or she is truly at the mercy of the lender for this type of financial instrument. A bank needs to get the money they lent out in one form or another, and fees are one such way to do so. A borrower has no choice but to accept the terms. The only way to minimize the damage is to find the best deal before signing on the dotted line.

Joinbox

Get L&C Updates in your inbox!

Twitter
RSS
Facebook
Newsletter

Uncategorized – The last few months of the year are a great time to review the year we’ve had and plan ahead . . .

Uncategorized – Since they have been available to investors starting in 1997, Roth IRAs have provided the unique ability to put away . . .

Uncategorized – With all of the negative publicity being heaped on banks lately, one of the areas that has been complained about . . .

Uncategorized – One of the most popular mortgage loan products sold to homebuyers in the last few years leading up to the . . .

Uncategorized – Unemployment statistics are in the headlines constantly as more and more people lose their jobs. There is a growing segment . . .

Uncategorized – Gold prices are at record highs and if you watch any late night cable TV, you’ve probably seen the commercials . . .

All Infographics – We all know 2009 was a horrible year for everyone financially. This chart shows just how bad it was by illustrating the number of bankruptcy filings by state for the first six months of the year. For the states highlighted on the image, the increase in bankruptcy filings from 2006 to 2009 is remarkable, more than doubling in most instances.

Uncategorized – Bad credit can make it hard to do a lot of things and one of the most difficult things to . . .

Uncategorized – In one of President Obama’s first big moves as President, he announced a $787 billion stimulus package that was intended . . .

Uncategorized – When it comes to our finances, we often look at the big picture of where we are in life compared . . .