Personal Loans with Midwest Regional Funding
Do you have a financial goal in mind that may seem lofty or unattainable in your present financial conditions?
Perhaps now is the time to open that sports bar you’ve always envisioned owning. Maybe you’d like to take an extended break from work to travel the world. You could also simply desire more spending money for the weekends to take your significant other on a few lavish dates. The vast majority of people in this world have SOMETHING in which they could utilize a few more bucks. Regardless of your specific desire for some immediate cash, a personal loan is an avenue one could take to accomplish their financial goals.
Let’s take a look at personal loans in more detail.
What are they
A personal loan is defined as money that you borrow and pay back with interest over a period of time agreed upon before issuance. This loan can be used for 1 or more purposes by the individual and are highly versatile in nature. A few examples of common uses for personal loans are:
Debt consolidation loans
Home improvement loans
Medical bills
Divorce costs
Small business expenses
Vacations
Weddings
Holiday shopping
Funeral costs
Moving expenses
There are few things that a personal loan can’t be used for. This list is just a small sample of the possible applications of personal loans.
Unsecured Vs. Secured
Personal loans can come both secured and unsecured. The contrast can be made in the following ways:
Secured - These types of loans require collateral (something of value to put up against the loan). Examples of collateral are cash in a savings account, a house, an expensive car, or expensive artwork or jewelry.
Unsecured - These types of loans do not require collateral. To be approved for an unsecured loan you generally need to have a higher credit score and income. These types of loans are generally harder to get because the lender will probably have a hard time getting their money back if you don’t pay them.
Fixed Vs. Variable
Fixed and variable refers to the rate of interest that you pay on the loan. The interest rate is agreed on prior to the issuance of the loan.
Fixed Rate - Fixed rates of interest cannot change. These types of loans are much more common.
Variable Rate - Variable rates of interest can fluctuate throughout the length of the lease. These fluctuations are usually tied to the interest rate at which banks and other institutions are able to borrow money.
How to compare loans
The 3 primary ways that personal loans can be compared and contrasted are: the interest rate, loan term, and fees. Most financial institutions appear to be relatively similar in this regard. That being said, strict attention to detail is paramount in the understanding of the terms of your personal loan. The better awareness you have of the details of your personal finance, the more capable and prepared you will be to meet the challenges of the finance world.
- Interest rate - This is the rate of interest that you will pay over the course of the loan. Examine these with a lot of scrutiny. Merely a 1% change can make a substantial monetary difference.
- Loan term - The length of time designated to repay the loan. Generally, the longer the term, the lower the payment, and vice versa.
- Fees - Be sure to inquire about any other fees that you may be charged for before signing the loan papers. Be aware of every possible charge that can be accrued.
Be sure to thoroughly research exactly what you are signing for before entering into an agreement for a personal loan. Additionally, it is usually a good idea to get a few different offers before making a decision. The first loan offer may ultimately not be the right one for you.
Should you apply for one?
This can only be answered on a case to case basis and is dependent on what exactly you need the money for, as well as the current (and sometimes past) state of your finances. However, if any of the following apply to you, then we’d recommend looking into applying for a personal loan:
- You’ve done the necessary amount of research and are certain you possess the resources to repay the loan within the set time frame.
- You’re comfortable and ready to take on the responsibility of repaying.
- You absolutely need the money and don’t have any other way of getting it. This is not the ideal scenario for applying, but is undoubtedly the most crucial.
We hope that you found this article valuable in understanding what a personal loan is. If you’re interested in speaking with a professional regarding personal loans feel free to reach out to us!
Different ways your debt is hurting you
The main thing that we want people to understand is all the different ways that their debt is hurting them. Living life with debt is like running up a hill with a weight vest and wondering why other people are beating you. Once you have a good understanding of how your debt is weighing you down, you will be eager to get rid of it.
Since you have to spend money each month repaying your debt, you have less income to save and invest.
Let’s say you pay $200 per month on debt payments. That’s $2,400 for the entire year! If you didn’t have to pay this debt you’re essentially adding $2,400 to your income.
Not only is it difficult to make the monthly payments on your debt but it also hurts your ability to borrow more money. This could be a problem if you’re looking to buy a house or start a business in the next 5-10 years.
Okay - we’re done being negative! Now it’s time to talk about solutions.
Let’s talk about
your debt!
Having debt is usually something that most people don’t like to talk about. Granted, it’s probably not something you should bring up on a first date but that doesn’t mean you shouldn’t talk about it! In fact, talking about your debt is a really good step in the right direction. That’s because everyone’s financial situation is different. The best way to make a decision is to speak with a professional about your specific needs.
Have you ever heard the phrase “the best way to make sure you understand a concept is to explain it to others”? By talking with us about your debt you’ll have to vocalize exactly what your personal situation looks like (don’t worry, we don’t judge).
Having lots of debt can easily feel like a hopeless situation and we all know that hopeless situations are the easiest to ignore. However, ignoring it won’t make the problem go away. Instead, understand your debt and let us help you attack it.
We have seen every different situation in the book, trust us. There isn’t much that surprises us anymore. The good news is that we are always able to help point people in the right direction! Even if you just want to get some advice we are happy to help.
Got questions?
We are ready to help.
Call us and let's talk!
We are here to bring
your plans to life.
You work hard, and we know it. Nothing takes the wind out of your sails more than a financial set-back or other unexpected problem. When you fall on hard times you don't have to go it alone. Whether you're re-organizing or starting over, Midwest Regional has a compassionate team of experienced agents standing by to help.
We'll help make your dreams a reality.
Sincerely,
Midwest Regional Team
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