Thursday, August 2, 2012

The Basics of Home Finances Elude Most Americans

LoansLoans (Photo credit: zingbot)
In today's America, more than one-third of households can barely manage to pay their bills. They are only getting by paycheck to paycheck. The Consumer Federation of America's research reveals Americans are less well off than they were 10 years ago. 

According to the survey of 1,508 US households, 30 percent of families are living paycheck to pay check. They aren't complaining because they feel they are financially comfortable. The have all the things they need to live. The problem is that when an emergency arises, their world is thrown off balance. Without savings or credit they are at a disadvantage to financially solve an emergency cash need.

The lack of income combined with a high cost of living has led many people to take out debt for financial needs but because of the lack of income they are unable to pay these loans back. The result is bad credit or no credit at all. Their only solution is to secure personal loans with no credit check.

There are companies that will give a personal loan for poor credit. These loans can nowadays be done online and with great speed. The funds can be deposited into your bank account in a short period of time.

Because of the convenience and the ability of borrowing with bad credit, the fees for these loans are high. On the websites of these loan companies the rates, fees and late fees are clearly listed. The loan company eLoanPersonal clearly displays the exact amount of fees payable for the amount of money you borrow. There are no surprises. This transparency is refreshing.

When entering into any type of debt arrangement be sure you know all the facts, fees and schedules to pay your loan back. The borrower needs to take responsibility for paying back the loan and should take seriously the risks involved with any loan agreement. Using personal loans on a continual basis is irresponsible and sets you up for a unnecessary cycle of debt.

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