Personal Loans – To Finance the Payments of Personal Your Needs
Each one of us has number of wants. On the other hand we do not have sufficient funds to fulfill these wants. You can fulfill your desires without making any delay in payments and without postponing your plans by opting for Personal loans. They are types of financial assistances that finance the personal payments of the borrowers.
These consist of two forms:
Recession-Proof Personal Loans: Personal Finance in a Tight Economy
Go macro or go micro. In today’s gun-shy lending market, “the middle path” is mighty narrow. Look to the extremes for the future of finance.
If you can, “go big.” Banks with larger liquid asset pools are more likely to successfully shield their lending growth in a fickle economy. A bank with international holdings and major liquid assets can continue more favorable personal loan practices when smaller operations are tightening their lending policies (Bluedorn et al. 2009).
But these major international power brokers are often unconcerned with “the little guy.” Individuals looking for a personal loan need a leg up that’s too small to tempt the largest banks. In the current economic climate, small banks are cinching down on lending practices, treading water until the storm passes. Few people have the resources to meet today’s strict lending requirements, even with a good credit score. So what’s the “little guy” to do?
More and more individuals are turning from the major banks to Alternative Financial Services (AFS) providers. Payday loans, asset-based lending, and peer-to-peer (P2P) lending are the three major alternative possibilities on the market today. When navigating the waters of your small personal loan options, steer clear of high-interest, low-reward options.
Payday Loans and Asset-Based Lending
Payday loans are short term, high interest personal loans (often around 400% interest) marketed as a way to cover expenses until the next paycheck. When that check comes in and a borrower can’t afford the interest, it’s rolled over into another payday loan. According to the Corporation for Enterprise Development, only 2% of payday loan borrowers manage to pay off the loan on the first paycheck; the average is 9 loans per year, resulting in an average repayment of 3 for a 5 loan (CFED 2009).