We’ve all included better financial management in our New Year’s resolution. We promise to save money, spend less and even invest because we want to be wiser with our finances.
But let’s face it; we will need fast cash at some point, whether it’s for paying an overdue bill or fixing a broken-down car or buying a new mobile phone when your old one fell in the loo.
If you ever find yourself in dire need of quick cash in 2019, make sure to keep these loans in mind:
Personal Loan
A personal loan is one of your best options for getting fast cash because it has fewer requirements than a traditional loan and approval time is also shorter. Most personal loans are also unsecured, which means that you don’t need a collateral to borrow money, and they have lower interest rates than most credit cards making them a better option for consolidating debt, paying for a variety of purchases and smooth your cash flow.
There are several types of personal loans. An unsecured loan doesn’t require a collateral but has a slightly higher interest rate. A secured personal loan, on the other hand, requires a collateral like an asset or your personal savings.
A fixed rate loan offers a fixed monthly payment for the term of loan while a variable rate loan follows a benchmark rate that will affect your monthly payments. To get approval, a lender will usually look into several factors including your credit score, salary and paying capability. Most lenders offer fixed rates and flexible payment terms for personal loans. You just have to find the right lender to make sure that you take advantage of these privileges. AmOne is one company that does these types of loans check out their review from www.loanreviewhq.com to find out more about them.
Debt Consolidation Loan
If you accumulated debt in 2018, the New Year is the best time to get off them with the help of a debt consolidation loan. Consolidation means a lender will pay off several loans into one large amount. So, instead of paying several lenders, you will only make a single payment to one lender. A consolidation loan is considered a good option for paying off debt because larger loans have lower interest rates than smaller ones. You will also be given a longer term to repay your loan, which means that your monthly payment will be lower.
You can choose from several types of consolidation loans depending on your needs. A student consolidation loan is for paying all your loans from when you were in school and having them in one fixed monthly payment. This will help lock the interest rate on your student loans so they don’t continue to increase.
An unsecured consolidation loan or signature loan is good for paying off your credit cards because it has a lower interest rate. A home equity or second mortgage loan may also be used to pay credit card debt, but it’s a lot riskier because you are taking out a loan against your home. This means that if you are unable to make payments, you might lose your home.
Payday Loan
As its name suggests, a payday loan is a short-term loan that you can take out to get through a financial rough spot. While experts believe that this type of loan doesn’t really help you, it could be useful if you really need cash and your paycheck is still not due anytime soon. To apply for a payday loan, you will need to write a check for the amount that you want to borrow and an additional fee. You typically leave the check with the lender and they cash it out when your loan is due. If you can’t repay it yet, some lenders will allow you an extension, but it comes with extra fees. To make sure that you don’t get into trouble with accumulated fees, make sure that you pay your loan on time.
In the end, it’s very important to take responsibility for repaying your loans on time, no matter what type of loan you take out. This will not only give you the opportunity to apply for another loan if you need it in the future, it also helps protect your finances from further debt. In addition, it will also give you a good credit standing if you pay debts on time. Of course, it pays to always stay on top of your money and only take out a loan when it’s absolutely necessary.
