5 Personal Loan Mistakes You Can’t Afford To Make

The versatility of personal loans makes them attractive to consumers in need of extra funds. Personal loans can be used for helping consolidate debt, to renovate or remodel your home, financing travel, or anything you desire. Whatever you need the financial help of a personal loan for, you can’t afford to make mistakes when choosing the best personal loan for your needs. Mistakes could hurt your finances for years to come.

To get the best personal loan for your circumstance and to keep your finances healthy, avoid these mistakes:

1. Failing to compare options

Don’t settle for the first personal loan offer you receive. Interest rates, fees, and terms can vary immensely between lenders. In addition to checking with your bank or credit union, check with online lenders for offers. Competition between online lenders is stiff, so many will offer you lower rates than you’ll find with your bank or credit union.

2. Overlooking fees

Many borrowers are looking at the loan rates when comparing loan offers. Borrowers who overlook the fees and costs of each loan may end up paying far more than expected. Many lenders charge an origination fee. The origination fee is typically calculated as a percentage of the amount borrowed, usually 0.5%-2%.

3. Lying on the application

Not only is lying on your application illegal, but it can also hurt your chances of getting approved for a loan. Not all lenders check all details of your application so a lie may not be noticed, but if a lender realizes you gave inaccurate information, they can deny the loan. If the loan has already been issued and the lender realizes you lied, they can consider the loan a default and immediately ask for repayment. Be honest with lenders.

4. Skipping over the fine print

Before signing a loan agreement, lenders should always review ALL of the contract. Reviewing allows you to notice things like fees or terms that may differ from your first offer. Be on the lookout for hidden details because they can be proof of the lender being a predatory lender.

5. Not changing spending

If you’re borrowing a personal loan to consolidate debts or because you’ve mismanaged your money, you risk ending up in a worse financial situation if you borrow a loan and don’t adjust your habits. Before taking out a loan, borrowers should revaluate spending. Adjust your budget to avoid being in even more debt after you take out a loan.

Automate Healthy Financial Habits With These 3 Tips

Following healthy financial habits, especially those related to our long-term savings and goals can be challenging to maintain. Automating these healthy habits is key to keeping up with them and staying financially fit.

Here are three ways to automate healthy financial habits:

1. Set up auto-pay for your bills

Having your bills on auto-pay is a great way to simplify bill pay as well as save time and avoids having to worry about payment due dates and late fees. Have recurring bills set up to automatically be paid from your checking account, ideally as soon after your paycheck has been deposited as possible. With the bill payments taken out not long after your paycheck is deposited, you’ll have a good idea of how much money you have left to spend.

2. Set up an automatic transfer to your savings account

Saving goals are much easier to meet if you have a predetermined amount set to automatically deposit from your checking into your savings account after your paycheck hits. It’s far less tempting to spend money you should be saving if it’s not in your checking account because it has been deposited automatically into your savings.

3. Automatic contributions to a retirement account

Does your employer offer retirement plans like a 401k or 403b? Signing up for automatic transfers allows you to make the best of your tax benefits because the money put into these retirement accounts is not taxed. These automatic contributions provide you with a lower taxable income and the security of knowing you’re putting money away for your retirement. Consider making automatic contributions to an IRA account if you don’t have access to a retirement account through your employer.

A Final Word

Developing healthy financial habits is a process. Taking advantage of opportunities to automate some of these habits is a great way to force ourselves to keep up with our habits and ultimately, to reach our financial goals.

How to Save More Money

Many people want to learn how to save more money. However, many times they do not know all the ways to do this effectively. With the right information, this can be done easily without hardly any effort. Here are some things that you should know.

Credit Cards

Using credit cards can be good and it can be bad, depending on how you make use of them. Some people use them without thinking about the monthly payments that they are going to have to make. This can get out of hand very fast. So by using your credit cards wisely and sparingly can help your money situation greatly. However, if you are just spending and spending, then when the bills start rolling in you can get overwhelmed quickly when you cannot handle the payments.

Credit Score

Some people, who do not keep a check on their credit score and history, find out when it is too late that there are false charges on their statements. This can cost you a lot of money in the long run. The longer a bill is left unpaid the more interests and late charges you will have. So if you have a charge that is not yours on your statement then you are losing money.

In order to save more money, you need to be sure that you are keeping a check on your credit statement to make sure that everything is correct. If there is something wrong, you need to contact the company to get it straight so that you are not losing money.

Budget

You may feel that you do not need a budget. However, this is one of the main things that you need in order to succeed. You will want to know how much money is coming in as well as how much money is going out. You may be surprised by how much you are spending on non-necessities items. This kind of spending can drain your money quickly. It isn’t bad to buy some things, but when you are trying to save, you have to choose how you spend money wisely or you will probably not have any extra to save.

Cut Back

After you see how you are spending, you can then find ways to cut back. For example, if you buy coffee from a coffee shop five days per week, then maybe you can cut back to two days per week and then the money that you would have spent the other days can be saved. It can be hard to stop doing some of the things that you are doing, but if you start small you will not even notice it in the end.

Save wherever you can save more money, you are going to have to save everywhere that you can. You may be surprised money that can be saved at the grocery store just by looking at the prices of the name brand and the store brand. Finding special buys on some of the things you have to buy such as household cleaning supplies. There are so many ways to save but you have to be willing to look at your spending and find ways to spend less then take that money and save it.

 

 

Ways to Eliminate Debt

Debt may be overwhelming someone’s finances. For those who have nightmarish visions of being hunted by creditors, it is time to take control of your debt. This article looks at some of the best ways to eliminate debt.

Apply Common Sense

Using some common sense is the best way for someone to reduce his or her debt load. The top reason individuals accumulate so much debt is that of the ease with which one can use credit. People seem not to realize the amount they have already spent. Before they realize it, they are maxing out their credit cards every month. A smart way for a person to figure out how much they are spending is by paying for everything with cash. Through making cash payments, one will get a better appreciation for each hard-earned dollar.

Avoid Impulse Buying

In order to freeze debt, a person must freeze his or her spending. This is particularly important if one does not have an income to deal with such high debt levels. By continuing to incur more debts, an individual will soon not have enough money to pay the interest. Therefore, it is important to avoid making impulse purchases unless in the case of emergencies.

Come Up With a Plan

There is a saying in the financial world which goes like failure to plan is a plan to fail. This saying applies to all individuals, including family households. One should start by developing a plan that will take him or her to a debt-free zone. A person needs to know the total amount of debt and the length of time it takes to pay off in accordance with the current payment plan.

The next part is to establish a budget. An individual should list all his or her revenues and keep tabs on their expenses. This gives them a better idea of the amount of money coming up, as well as whether it is possible to sustain one’s current spending habits or not. Once he or she has an idea how much they are spending, they can then cut back on unnecessary expenses.

Research Options for Saving Money

It is advisable to search for money-saving options such as credit card offers and low-interest rates. One should shop around before settling for a creditor. Most people are cynical about banks as they feel getting a loan is still as difficult as it was several decades ago.

For those who don’t have time to shop comparing rates, fill out the personal loan application form here and let us match you with lenders offering you the best rates.

 

Disclaimer: Modern Lending Solutions (modernlendingsolutions.com) is not a lender. We offer a matching service for connecting potential borrowers with financial institutions. Loan amounts, rates, and terms will vary based on lender’s decision, and approval is not guaranteed.
Offers provided to customers feature rate may no greater than 35.99% APR with terms from 61 days to 180 months. However, your actual rate depends on credit score, loan amount, loan term, and credit usage and history, and will be agreed upon between you and the lender. An example of the total amount paid on a personal loan of $5,000 for a term of 36 months at a rate of 10% would be equivalent to $5,808.09 over the 36-month life of the loan.