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Smart Moves With Loans

Common Question About Loans

  1. How Do Credit Scores Work
  2. How Do No Consigner Student Loans Work?
  3. How Do You Consolidate Student Loans?
  4. What Is a Guaranteed Student Loan?
  5. Why Would You Want To Consolidate a Loan?
  6. What is a Good Credit Score To Have?

What Is A Loan?

A loan involves a transfer of money with the understanding that the party receiving the money will pay back that money (the principal) and also pay back interest until they have paid back that principal amount.

Loans Are Risks

Most loans are secured mean that if you don't pay back the principal or stop making payments of any kind, the body that gave you the loan is now entitled to some of your stuff. That might be as huge as a house or as little as a camera. It entirely depends on the terms of the loan.

Why is Everyone Dumb with Loans?

Ninety-eight percent of the time we are dumb or at least blinded by what the loan represents. Your dream house, dream car, or trip. All those things are really short lived. The payments never go away.

Student loans are pure evil... Because they are made to people that still don't have the right to drink alcohol, but they have the inherit ability to gamble away their entire finanical future. That not only doesn't seem right, it's not. The protections given to student loan agency is beyond excessive. Don't even get me started.

You need to clearly understand all terms in any loan presented to you. Loan officers are really predators. They realize you are coming to them because you don't have money. So they throw all kinds of legal mumbo jumbo at you to get the terms exactly how they like. The only way to protect yourself from this is to realize that the person giving you the loan is benefitting more than you. Also keep in mind there are other fish in the Sea. There are literally thousands of lenders. You don't think that they will make concessions to get your business, think again.

How to Be Smart With Loans

1. The Terms Are Clear - Not only that you understand everything on your own, but you could explain it to someone else.

2. Crunch The Numbers - Can you easily afford to repay this loan month in and out? Don't lie to yourself, be honest.

3. Preferably Get an Unsecured Loan - Secured loans mean that you will lose something, if you don't make the payments. Do you really want to lose that something?

Unsecured loans will screw up your credit for some time, if you default (stop paying or can't afford to pay). But then again so will a secured loan.

Steve Elston
I always get caught in between with loans. Some loan sharks just get too much interest and sometimes getting a loan is one of the most drastic measures I need to take to back up some finances. But I learned my ways now. There are just some lending companies that cannot be trusted.
Steve Elston at at 08:51AM, 2011/07/18.
Esther Barney
Well everybody's dumb with loans. People are just blinded by the fact that they badly need money. Others would just get a loan for the sake of getting money not knowing that there's a bigger responsibility of paying the loaned money.
Esther Barney at at 09:16AM, 2011/07/18.
April
I know a few people who used to get loans for the most pointless reasons. Most of the time they'd never use it for those reasons. Personally I rarely take out a loan, if I really need a loan I'll get one, but if I can do something on my own, than I'll do it my own way.
April at at 07:45PM, 2011/07/19.

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