How To Borrow Money If You Can’t Qualify For A Personal Loan
One of the first signs that you are in serious financial trouble is that notices start arriving in the mail, offering you personal loans, claiming that you are pre-qualified for amounts approximately equal to half of your annual income. The cruel irony is that, if you try to apply for those loans, they will either charge you high interest rates or reject your application entirely. Thus, they will make your financial situation worse, either by an inquiry that lowers your credit score or by another monthly bill where you struggle to make the minimum payment. Think of those personal loan notices as a symptom of your debt problems but not a solution to them. If your financial situation is so bad that you are tempted to apply for the personal loans for which you receive unsolicited offers, you should resist the temptation to apply and instead contact Philadelphia debt collection abuse lawyer.
The Next Best Thing to Personal Loans
Debt consolidation loans, which are unsecured personal loans with low interest rates, have helped numerous people avoid filing for bankruptcy or defaulting on their debts. These loans are not so easy to get. If you have little credit history, or if lenders consider it too risky to lend to you, then personal loans might not be a realistic solution for you
If you need quick access to several thousand dollars in cash, then there are several ways to get it, aside from conventional personal loans. These are some financial products that, like a personal loan, enable you to borrow a substantial amount of money and then pay it back over a long period of time. For example, you should not take out an unsecured personal loan with a high interest rate if, instead, you have access to one of the following financial products:
- Using your credit cards to take out major purchases or, in a pinch, take out cash advances
- Personal lines of credit
- Home equity loans or home equity lines of credit
- Peer-to-peer loans
- Refinancing your home mortgage
Of course, some of these options are only available if you own your home. Even then, you are risking losing your house if your financial situation gets worse after you use your house as collateral for a loan.
Would You Borrow From Your Older Self or Your Heirs to Get Cash Today?
If you have a retirement account, it is possible to borrow money from it, but it is not advisable. If you are unable to pay back the loan, the unpaid balance counts as taxable income. It is also possible to borrow against your life insurance policy if you have one, but this means that, if you don’t pay it back, the payout amount your estate receives will be less, leaving less money for your heirs to inherit.
Contact Louis S. Schwartz About Credit Card Debt
A Philadelphia consumer law attorney can help you find alternatives to personal loans if you are unable to qualify for one. Contact Louis S. Schwartz at CONSUMERLAWPA.com to set up a free, confidential consultation.