Surprising Facts About Personal Loans

Four months after my niece’s graduation party, she got an email with a subject line indicating that she would soon need to start making payments on her student loans. Employed only part time and sharing a room in a small apartment to keep costs down, she was afraid to open the email. Since I know something about student loans, I offered to help her out. I took a Sunday morning drive to her place.

Student loans are a controversial issue, especially considering how much student debt is outstanding in the United States. The average graduate owes approximately $37,000 in student loans, and that number may continue to see a rise as college tuition increases. College is becoming more of a necessity for future careers rather than a luxury, so it is alarming to think how much debt will mount in the future. Student interest rates on the loans play a major factor when paying these loans back. The fact is that not all interest rates are cut from the same cloth. Unlike interest rates from other securities, student loans are not entirely set by the market. Also there are different types

Student loans are one of the top three national debts in the United States. Total student loans have reached an outstanding of one trillion dollars and are still on going. It would take the United States hundred-fifty years, twenty million dollars a day to fully cover this national debt. Student loans are intended for students to go to college but they come with a rising social and economic cost. As the expectancy of high return and tuition are increasing, more students are ending up with a mountain of debt and without a degree. It is risking our countries’ future; we will face another recession if the trend of student loans continues to grow exponentially. We will have a future of Millienials who are in debt and unable to invest their money into the economy. In order to have a stable and working economy, we need people to spend money. Young adults are the “masters” of spending money and have a huge contribution in stabilizing our economy. If young adults are spending their money in paying off their debts, there will be definite consequences. So people might ask, “what aspects of the economy are being affected due to rising student debt?” Despite the social cost that student loans promote, through in depth research and analysis, I have concluded that our economic cost will evolve around the housing market, small businesses, and students’ career choices. These are extremely valuable industries that

In the article, “Student Debt Swells, Federal; Loans Now Top a Trillion”, by Rohit Chopra, an editor and public speaker about student debt at Consumer Financial Protection Bureau, explained how in the year of 2013-2014, the amount of student debt has risen to a trillion dollars. Research has shown that student loan debt increase rate is faster than credit card debt. This places student loan debt in front of home mortgages as the highest form of consumer’s debt. Mr. Chopra also talked about private student loans, except there was not much information regarding the topic due to some documents being private. Though, the Bureau gathered information to conclude that there was about 165 billion dollars in the private student loan debt. There were

Commercial loans are not your average payday loans. People who seek commercial loans have a business plan in mind; from rental properties like condominiums or duplexes, office expansions or relocations, manufacturing facilities to a local sub or pizza place. Capital is needed and sometimes lots of it! Some Commercial lending institutions include: Small Business Association (SBA) - governmental business lending. Bank of America - touted to be the number one SBA (Small Business Association) lending institution. Wachovia - Personal and business financial services. Ditech -Mortgage lender for personal and business. Lending Tree - Multiple loan quotes for personal and business. Before you contact a commercial loan institution, get prepared. To acquire a commercial loan takes time (from 30 to 60 days or longer) and the better prepared prior to submission of application, the less time the process will take. In general, the necessary paperwork needed to submit with the loan application includes: Business profile: This document describes your business, including annual sales, number of employees, length of time in business, and ownership. Business plan: A business plan is particularly important for new businesses, as they lack a track record. Your plan should convey all important facts about your business in a concise manner and should include financial projections for the first 24 to 36 months. Your local Chamber of Commerce has excellent guides to business

While reading “Me, The Other Scott, And Payday Loans” from MacLean’s magazine, I had mixed feelings towards the article. Prior to reading, I was initially unaware of what exactly payday loans were and subsequently did my own research to follow up. After reading the article, I began to question the integrity of payday loans, skeptical of the idea of taking a loan out with 400% - 500% interest. On one hand, I believe it’s entirely on the consumer to make educated decisions regarding financial terms; however, it’s also understandable why someone would feel inclined towards taking out these loans when they’re in desperate needs of funds. Furthermore, payday loan companies know exactly who their target customer is, as it is blatantly obvious through

If I won a lump sum payment of $10 million in the lottery, the first thing I would do Is pay off my daughter’s education. Once she graduates school, I know that I will be in a lot of debt. This debt will only continue to increase because of the high interest rates of student loans. An education is not something I can deprive my daughter of because I do not have the money at the moment to financially support her. This is why I would have to take out loans for her. I would use the money to pay off her loans so that they do not increase over time because of their interest rates.

The problem to be investigated is the ethics and effects of subprime loans on the financial institutions, borrowers and stakeholders. The subprime market was created to provide borrowers with a FICO score below 570 access to home loans. Inopportunely these loans were a major financial risk as most of the borrowers did not have the long-term income to pay for the high interest rate loans. (Jennings, 2012)

College is quite expensive and with the looming certainty of debt, there are two choices to turn to. One is applying for scholarships and the other is working longer hours. By being granted a scholarship, I am able to study more and have more success in college. Even though I will still be working to lessen my debt, I would not have to take on extended hours. I would have more study time and be healthier as I would be less stressed about my work load of classes and a job. By receiving scholarships I will get more out of college by better understanding the material being taught and by doing well in class. In turn, I will be more prepared for the workforce ahead, therefore giving more to the community as a research scientist. Overall, the investments

Like many other phenomena, loans guaranteed by the Federal Housing Administration have had their fair share of myths and facts. Some of the most common myths and facts of FHA loans are briefly discussed below.

If you need some financial help because of an unexpected expense or an expense that you must pay but cannot afford at the moment a loan is a great route to go. Various companies offer loans to people that need them, but finding a loan can be difficult if you have an unreliable credit history. If you have an unreliable credit history it would probably be wise to not go to a bank as they may turn you away. It may be best to go with a payday loan as the requirements are not usually as strict.

A 40 year old man wakes up one morning seeing that his kids are about to start the middle years of schooling. He is concerned about their well-being and their fiances. That man isn’t able to afford everything for his kids like a lot of other parents. Every month he sees another bill he has to pay. Student Loans! He has been paying for his student loans since he graduated nearly 20 years ago. On the outside that man is a happy man, but he is frustrated and angry that he took on such a load. He graduated making not exactly the highest salary, but he feels he shouldn’t have accumulated so much debt. His eyes tears up when he lets down his kids when they want to do something, yet he simply cannot afford it. This problem is far too common for college

Host a potluck dinner for your friends instead of an expensive dinner or night on the town.

Description: real payday loans can be only available in case you make proper verification of the lender. There are few strategic methods that can help you to conduct this verification successfully and you can follow them.

The payday loan industry operates with fees, and relies on repeat business from their customers. Once someone receives a payday loan, they become harder to pay off. For example, assume Bob makes $400 dollars a week, and his weekly expenses are 350 dollars a week, but he needs to pay $200 dollars to fix his car. Bob obtains a payday loan for $300 dollars, which was the smallest amount, and receives $255 dollars to pay for his car repairs. Now come Bob 's next payday, he only gets a $100 dollars which means he doesn’t have enough money to pay for his weekly expenses. Bob is forced to roll over his loan or take out a new loan in order to survive. This causes the loan to continue to grow in size, until said loan is now for a thousand dollars, and Bob needs to borrow money in order to pay it off. These loans are essentially a financial trap that are practically impossible to escape from without outside help. As stated above, payday loans mostly operate in low income areas, which are statistically composed of people who are lack an education and thus do not understand how banks work. The borrowers see payday loans as a good deal, and most residents of low income areas do not have the credit necessary to qualify for a loan from a bank. (Find a quote )