The global economy is a big foul-up right now, and all the credit (or blame) can be placed squarely on the shoulders of irresponsible borrowers everywhere. Borrowing intelligently is really an art form, and the large majority of credit users are doing it as stupidly as anyone ever could. What we're bringing in in the form of income doesn't come close to what we're sending out in the form of borrowed spending, and we seem to have given up entirely on putting money away for a rainy day - that's right - nobody saves anymore.
Residential real estate, and all the abuses on the both sides of the transactions, is the most glaring indicator of how ridiculous our country has chosen to behave itself with respect to credit and lending practices. A plumber earning $54,000 per year has no business borrowing $400,000 to buy a home; he'll never be able to to keep up with the payments. And now the taxpayers of the world, most of all those who have kept their mortgage current by not borrowing more than they could pay back, are footing the bill.
We have to do better next time, and doing better means using credit intelligently. Most of the time borrowing wisely means not borrowing at all, including avoiding personal signature loans and other quick cash borrowing tools. Stay away from them no matter what - even if it means taking a part time job to get by in the meantime.
Why not? Well, because these types of loans nearly always carry terrible interest rates and bad terms. If you choose to borrow cash in this way you can end up paying in excess of 100% interest as well as hundreds of dollars in fees. How could that ever be a smart move?
So, it's always going to be a terrible move, but sometimes I suppose using these kinds of loans will be unavoidable. You might lose your job due to an unfair boss who fired you just because you nicked his car pulling out of the parking stall at the office. Next thing you know you're out of a job.
Of course that's not fair and technically you could sue him. But do you have the money for a lawsuit? I doubt it.
The only remaining option may be to bite the bullet and head to your local bank or loan store. After all, your mortgage company isn't going to let you skip payments just because you have a crazy boss; they have big time cash problems of their own.
The best words of wisdom I can offer you are to borrow not one cent more than you need to keep your family afloat till you land a new job. And whatever employment opportunity comes your way - take it! When people are throwing around words like recession and depression it's no time to get greedy about which job you will or won't take.
Residential real estate, and all the abuses on the both sides of the transactions, is the most glaring indicator of how ridiculous our country has chosen to behave itself with respect to credit and lending practices. A plumber earning $54,000 per year has no business borrowing $400,000 to buy a home; he'll never be able to to keep up with the payments. And now the taxpayers of the world, most of all those who have kept their mortgage current by not borrowing more than they could pay back, are footing the bill.
We have to do better next time, and doing better means using credit intelligently. Most of the time borrowing wisely means not borrowing at all, including avoiding personal signature loans and other quick cash borrowing tools. Stay away from them no matter what - even if it means taking a part time job to get by in the meantime.
Why not? Well, because these types of loans nearly always carry terrible interest rates and bad terms. If you choose to borrow cash in this way you can end up paying in excess of 100% interest as well as hundreds of dollars in fees. How could that ever be a smart move?
So, it's always going to be a terrible move, but sometimes I suppose using these kinds of loans will be unavoidable. You might lose your job due to an unfair boss who fired you just because you nicked his car pulling out of the parking stall at the office. Next thing you know you're out of a job.
Of course that's not fair and technically you could sue him. But do you have the money for a lawsuit? I doubt it.
The only remaining option may be to bite the bullet and head to your local bank or loan store. After all, your mortgage company isn't going to let you skip payments just because you have a crazy boss; they have big time cash problems of their own.
The best words of wisdom I can offer you are to borrow not one cent more than you need to keep your family afloat till you land a new job. And whatever employment opportunity comes your way - take it! When people are throwing around words like recession and depression it's no time to get greedy about which job you will or won't take.
About the Author:
Is it possible to get signature loans with bad credit? Yes! You'll find no credit check signature loans on Mark's website, Loan-Doctor.org.
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