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How to Get Help When You’re in Financial Trouble
NEW YORK, March 3, 2023 (Newswire.com) - iQuanti: Despite the best intentions to properly manage our finances, our efforts sometimes get derailed by unplanned bills and mounting debt. Fortunately, there are options when it comes to addressing money problems, like taking out a personal loan or borrowing from loved ones. In this post, we'll give you five strategies you can consider using to help you get out of financial trouble and back on the right track.
1. Take out a personal loan
If your money issues are due to an unexpected expense like a large medical bill or home repair, consider taking out a personal loan.
Personal loans are commonly used for a variety of purposes, including the financing of major purchases, or paying off high-interest debt. In most cases, this will be a better option than putting the expense on a credit card because a personal loan can often have a lower interest rate for a qualified applicant.
A personal loan can often be a secured loan. This means that something of value like your home or vehicle must be pledged as collateral to secure the financing. Keep in mind that defaulting on a secured loan could lead to forfeiture of the asset.
2. Leverage the equity of your home
If you've owned your home for several years, you might be able to use the equity you've built to help you get the funding you need with a home equity loan.
Equity refers to the value of the home that you, as the homeowner, would be entitled to if it were sold. For instance, someone who owes $100,000 on a home valued at $250,000 would have equity of $150,000.
A loan using the equity of a home can take one of two forms. The homeowner can either get a home equity loan and borrow a lump sum amount or use a home equity line of credit, typically known as a HELOC. A HELOC grants the homeowner access to a revolving line of credit until the principal must be repaid, which can be for a period ranging from five to 10 years, and the borrower only needs to pay the interest charges during each periodic billing cycle.
Keep in mind that as with a secured personal loan, defaulting on a home equity loan could lead to forfeiture of the asset.
3. Borrow from family or friends
You may want to consider asking family or friends for financial assistance if you cannot get a loan from a bank or other lender.
If you take this route, it's in everyone's best interest to be sure the terms of the loan are put in writing. Even though these are people who care about you, and you care about them, no one will want to get into any disagreements about the loan and then have it negatively affect the relationship.
4. Prepare for the next time
If you're experiencing financial trouble right now, there's no reason not to be proactive to prevent more damage. Preemptive damage control can be accomplished through a variety of simple steps:
- Make a budget and stick to it
- Switch to cash instead of using credit cards
- Focus on paying off your debts using an acceleration strategy like the debt snowball method, i.e., pay off smallest debt(s) first.
The Bottom Line
There are many resources you can turn to for help if you encounter financial troubles. Personal loans, a home equity-based loan, or assistance from loved ones may be able to help you to meet your debt obligations. If the problem is more serious, you should consider reaching out for professional guidance.
Contact Information:Keyonda Goosby
Public Relations Specialist
[email protected]
(201) 633-2125
Original Source: How to Get Help When You're in Financial Trouble
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Consumers Are Most Worried About Making These Types of Payments in 2023
NEW YORK, March 2, 2023 (Newswire.com) - Credello: Consumers always have bills to pay. What some individuals and families are focused on now is wage growth not keeping up with the pace of inflation. Some have taken on more debt in recent years. Others have dipped into savings to keep up with their most crucial bill payments.
Some consumers have taken on loans with collateral, also known as secured loans. Some with better credit have opted for unsecured personal loans, while still others are using credit cards to pay for many of their monthly expenses.
Whichever way you're paying your bills, it might interest you to know which payments American consumers are most concerned about as we progress further into 2023.
1. Food
In a recent Fannie Mae National Housing Survey, American consumers mentioned that they were more concerned about paying their food bills than anything else. Many cited the prices of specific food items that have increased recently.
The grocery store is usually where Americans notice sharp price increases. Because of that, it's not surprising that many expressed frustration over having to pay more for the same food staples that cost less not that long ago.
2. Medical Care
Some individuals have healthcare plans through their work. Those that do often still have to pay hefty copays when they seek medical care, though. Those who are self-employed must pay for healthcare plans on their own, and that's expensive.
The cost of virtually all medical procedures and many medications seem to keep going up. It's unlikely that will change anytime soon, since America appears in no hurry to implement a universal healthcare system.
3. Gas
Paying more when gassing up the car was another concern for many American consumers. Higher gas prices mean it costs more to drive to and from work. Taking care of various errands costs more as well.
This concern is at least starting to be mitigated by one change in automotive technology. In recent years, more individuals than ever have been driving hybrid cars and electric vehicles. Those that do are finding some relief because they're paying less for gas, or they're no longer paying for gas at all in the case of EVs. It seems likely this trend will continue.
4. Rent and Mortgage Payments
Rent and mortgage payments are additional expenses on American consumers' minds. Last year, more of them expressed concerns about their possible inability to keep up with the monthly rent on their apartments or mortgage payments for homeowners.
Renters seem disproportionately more worried about payments than homeowners were about mortgage payments. The number of individuals belonging to both groups who feel nervous about future payments is going up, though.
How Can You Pay These Bills?
There are no simple answers to these concerns, but certain actions are possible. Consumers can ask for raises at work. If those are not forthcoming, they can update their resumes and look for better-paying jobs within their fields. They can take on second jobs in some instances.
They can purchase generic food products at the grocery store, should that be necessary. They can also buy bulk food items, saving themselves money that way.
The next vehicle they get can be either a hybrid or an electric car. Since more companies keep coming out with hybrid models and EVs, used ones are also becoming available. These are more affordable and attractive options for consumers who can't afford brand-new vehicles.
There are also unsecured personal loans available from lending entities and secured loans where you put up something valuable as collateral. Credit cards are another way to pay monthly bills. You should avoid that unless it's necessary, though, due to the high interest rates these cards usually charge.
While rising costs can be frustrating, consumers have options that can help alleviate some of the stress they might be experiencing.
Contact Information:Keyonda Goosby
Public Relations Specialist
[email protected]
(201) 633-2125
Carolina d'Arbelles-Valle
[email protected]
+1 305 849 8443
Original Source: Consumers Are Most Worried About Making These Types of Payments in 2023