high interest – Informare Wissen Und Koennen http://informare-wissen-und-koennen.com/ Sat, 19 Mar 2022 02:55:08 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://informare-wissen-und-koennen.com/wp-content/uploads/2021/11/cropped-icon-32x32.png high interest – Informare Wissen Und Koennen http://informare-wissen-und-koennen.com/ 32 32 4 budget cuts people who have paid off their student loans swear by https://informare-wissen-und-koennen.com/4-budget-cuts-people-who-have-paid-off-their-student-loans-swear-by/ Fri, 18 Mar 2022 09:10:38 +0000 https://informare-wissen-und-koennen.com/4-budget-cuts-people-who-have-paid-off-their-student-loans-swear-by/
  • Paying off student loans is daunting, but starting with one spending area can make it easier for you.
  • People who repaid their loans reduced their food expenses, housing costs and other savings.
  • Some married couples lived on one income while using the other’s salary to pay off the debt.
  • This article is part of the “Better, Smarter, Faster” series focusing on effective choices you can make with your money to achieve big life goals.

When making resolutions about paying off student debt, it’s easy to set unrealistic goals and focus only on the big picture. But instead of reviewing every dollar you spend, it can be easier to look at the details: Cut spending in one area of ​​your budget at a time, working gradually towards your debt repayment goal.

We asked seven people who paid off their student loans which changes made the biggest difference.

1. Pay attention to food expenses

“At one point, we were spending $1,000 on food,” says credit expert Jasmine McCall, who worked with her husband Jay to pay off $96,452 in student debt over four years, of her monthly expenses. Once they got that reality check, the McCalls focused on cutting groceries and restaurants before tackling other areas where they could cut back.

The McCalls were also living off Jay’s $85,000 salary while allocating all of Jasmine’s $88,000 salary to their student loan debt. Living on one partner’s salary while using the other partner’s salary to pay off debt is a common strategy couples use to speed up the process of paying off debt.

2. Reduce the rent where possible

Imani Porter in Washington, DC, and Danielle Desir in Connecticut both moved in with their families while paying off their student loans. Not everyone has the privilege of relying on their family to save on rent, but Porter and Desir say it’s helped speed up their debt-paydown journey. Porter paid off $25,000 in debt in one year, while Desir paid off $61,823 in four years.

Software engineer Nickolas Natali moved into a van for a year to drastically reduce his living expenses and pay off $59,000 in one year. However, Natali doesn’t recommend van life for everyone. He told Insider, “I was peeing in a bottle and hiding under curtains held up with magnets so no one could see me, and yeah, that wasn’t sexy at all.”

3. Reassess insurance needs

After being fired from her job, debt repayment coach Ja’Net Adams took a hard look at her family’s finances to see where she could save money. Because Adams had worked in the pharmaceutical industry, free health insurance was usually part of benefits. Once she lost her job, she had to look elsewhere for coverage. “Thank goodness that was when Obamacare was happening,” Adams told Insider.

She also called her home and auto insurance providers to see if she qualified for a lower rate or if there was a cheaper package available. “We had too much

car insurance

and too much home insurance,” says Adams. “We saved $300 to $400 a month just by downsizing.

Once she found a new job, she was able to speed up the process of paying off her debt by maintaining those same insurance budget cuts.

4. Take a look at 401(k) contributions

With a combined income of $125,000 a year, Ashley Patrick and her husband were contributing 11% to their 401(k). A 401(k) plan is an employer-sponsored retirement account that lets you put a portion of your salary, before taxes, into an investment account that earns compound interest.

To prioritize paying off high-interest debt, Patrick and her husband put their 401(k) contributions on hold to focus on paying off $25,000 in student loans in just 10 months.

This does not mean that it is necessarily recommended to stop long-term pension contributions. Since retirement savings are a compound interest investment, saving as early as possible makes a huge difference. If you decide to put your retirement savings on hold to pay off your debts (or perhaps just reduce them temporarily), make sure you don’t forget to take them back in the future.

Lenders who refinance non-degree student loans https://informare-wissen-und-koennen.com/lenders-who-refinance-non-degree-student-loans/ Tue, 15 Mar 2022 23:33:18 +0000 https://informare-wissen-und-koennen.com/lenders-who-refinance-non-degree-student-loans/

If you have student loans but no degree, managing your repayment can be more difficult, especially if you’re hoping to refinance. Most lenders require a degree for refinancing, but there are a few exceptions. Here’s where to start if you’re trying to refinance your student loans without a degree.

What is student loan refinancing?

Student loan refinancing is the process of consolidating current student loans into a single new loan with a private lender. This gives you an interest rate determined by your credit rating and history (and those of your co-signer, if you have one).

Although you can refinance federal and private loans, you lose all of your federal protections when you refinance loans you got from the US Department of Education. For example, you are no longer eligible for income-based repayment plans, federal deferment, or civil service loan forgiveness. But you might qualify for a lower interest rate than you’re currently paying, which might make refinancing worthwhile.

Can you refinance student loans without a degree?

Most lenders require borrowers to have a college degree in order to refinance student loans. However, each lender has different eligibility criteria, so the lack of a degree does not automatically exclude you from the possibility of refinancing. Lenders usually require a bachelor’s degree, but they may accept associate’s degrees or no degree as long as you are employed or have a regular source of income.

4 Lenders Who Will Refinance Student Loans For Borrowers Without A Degree

If you’re exploring refinancing options, compare a few different lenders to gauge where you qualify and what interest rates and terms are available to you. The lenders below don’t require a degree to refinance, so they’re good places to start your search.

Citizens Bank

As long as you have made at least 12 consecutive payments on your student loans and have at least $10,000 in eligible loans to refinance, you may qualify for a Citizens Bank refinance loan.

Citizens Bank has relatively low rates and five term options available. However, there are a few downsides to keep in mind: you can’t release a co-signer until you’ve made 36 payments on your new loan, and the minimum loan of $10,000 is quite high.


Although you may not need a degree to refinance your student loans with PNC, you will need to have at least $10,000 in student loans and 24 months of consecutive payments before you qualify for refinancing. A stable employment and income history is also required.

PNC offers a generous 0.5% discount for setting up autopay. However, borrowers without a degree are subject to high interest rates and a maximum loan of $25,000.


Discover will refinance as little as $5,000 and up to $150,000, making it one of the most flexible refinance lenders around. There are also no fees, not even late fees, and the cap rates are relatively low.

Keep in mind that Discover only has two repayment options – 10 or 20 years – which can be limiting. Additionally, postgraduate loans and loans taken out while you were enrolled less than half the time cannot be refinanced.

Massachusetts Education Finance Authority (MEFA)

MEFA refinance loans require you to have made at least six consecutive payments on time on the loans you wish to refinance, but this does not require a degree. This means you may qualify for refinancing sooner than with other lenders. Rates are low and you can find out if you prequalify without a credit check.

That said, MEFA doesn’t offer variable interest rates, so it’s not the right choice if you want the lowest interest rates on the market. You will also need to have at least $10,000 in eligible loans to qualify for refinancing with MEFA.

Other ways to repay your student loans

Refinancing is one way to pay off your student loans, but it’s not always the best option for everyone. Consider other repayment options, including:

  • Income Oriented Repayment Plans: Available for federal student loans, income-based repayment plans base your monthly payments on your income and household size. So if you’re not working right now, your payments can be as low as $0 per month. The remaining balance on your loans is canceled after 20 or 25 years, depending on the plan you choose.
  • Debt avalanche method: If you have a lot of student loans, the debt avalanche method can help you organize your debt. With this method, you’ll make regular payments on all of your loans, but put all the extra money into the loan with the highest interest rate. Do this until the loan is paid off, then switch to the loan with the highest interest rate until all of your loans are paid off in full. This strategy will reduce the amount you end up paying in interest on your loans.
  • Federal Loan Consolidation: If you only have federal loans, consider getting a direct consolidation loan. Like refinancing, this combines all of your loans into one manageable payment, but it won’t cause you to lose access to federal benefits. You won’t save any money with this method, but it might be worth it if you don’t want to risk switching to a private lender.

Learn more:

The Truth About Payday Loans: Exorbitant Annual Interest Rates https://informare-wissen-und-koennen.com/the-truth-about-payday-loans-exorbitant-annual-interest-rates/ Tue, 15 Mar 2022 11:00:00 +0000 https://informare-wissen-und-koennen.com/the-truth-about-payday-loans-exorbitant-annual-interest-rates/

When you face an unexpected expense, a payday loan may seem like the ideal solution. Applying is quick and easy, and you can get the money you need in just a few hours. But before you take out a payday loan, be sure to read the fine print. Payday loans come with very high APRs, and if you can’t pay them back on time, you’ll end up paying even more fees and interest. So, is a personal loan really worth it?

What are payday loans and how do they work?

A payday loan is a short-term, high-interest loan that is usually due on your next payday. The idea is that you will use the money you borrow to cover unexpected expenses or to tide you over until your next paycheck arrives. Payday loans are also sometimes called cash advance loans or check loans.

Orville L. Bennett of Ipass.Net explains how they work: Let’s say you need to borrow $300 for an emergency expense. You write a post-dated check for $345 (the loan amount plus fees and interest) and date it for your next payday. The lender keeps the check and cashes it on the date you specify, usually two weeks later. If you don’t have enough money in your account to cover the check, you’ll be charged an NSF check fee.

Payday loans are usually due in full on your next payday, but some lenders will let you extend the loan if you can’t afford to pay it off all at once. Just be aware that interest rates and fees will continue to accrue until the loan is paid off.

Ipass identifies payday loans as a loan which can be a useful tool in times of financial emergency, but they should only be used as a last resort. Make sure you fully understand the terms and conditions before applying and be ready to repay the loan as soon as possible. Otherwise, you could end up paying a lot more interest and fees than you originally borrowed.

If you’re looking for an alternative to payday loans, consider online personal loans. Personal loans are a great way to consolidate debt, finance major purchases or cover unexpected expenses.

And unlike payday loans, personal loans come with fixed interest rates and payments, so you’ll always know how much you’ll have to pay each month. Plus, you can usually get a personal loan with bad credit. So if you’re struggling to qualify for a traditional bank loan, an online personal loan might be the perfect solution.

The risks associated with payday loans.

As with any type of loan, there are risks associated with payday loans. Here are some things to watch out for:

– Payday loans come with very high APRs, and if you can’t pay them back on time, you’ll end up paying even more fees and interest.

– If you can’t repay the loan on time, you could end up with costly NSF fees.

– Payday loans can hurt your credit score if you miss payments or fail to repay the loan.

– Payday lenders may try to aggressively collect debts from borrowers, which could lead to harassment and even legal action.

So before taking out a payday loan, make sure you weigh the pros and cons. If you can’t afford to repay the loan in full on your next payday, it’s probably not a good idea to borrow the money. There are other options available, so be sure to explore all of your options before deciding on a payday loan.

If you’re considering taking out a payday loan, be sure to check out our guide to the best payday loans first. We’ll help you find a lender who offers fair interest rates and reasonable repayment terms.

Payday loans aren’t for everyone, but if you need cash fast and have no other options, they can be a helpful way to get through a tough financial situation.

How to avoid high APRs when taking out a personal loan?

When looking for a payday loan, it’s important to compare interest rates and fees from different lenders. Here are a few tips :

– Compare the APRs of different lenders. Payday loans with lower APRs will cost you less interest and fees over the life of the loan.

– Avoid lenders that charge application or origination fees. These fees can add up quickly, so it’s important to find a lender that doesn’t charge them.

– Look for lenders who offer flexible repayment terms. If you can’t afford to repay the loan on your next payday, be sure to inquire about extending the repayment term. Just be aware that this will increase the overall amount of interest you pay.

– Do not accept any loan before having carefully read the terms and conditions. Payday loans can be expensive, so it’s important to know exactly what you’re getting into before signing anything.

If you take these steps, you’ll have a much better chance of finding a payday loan with reasonable interest rates and fees. Remember to always research the best deal before applying for a payday loan. High APRs can quickly drain your bank account, so it’s important to find a lender that offers fair rates and reasonable repayment terms.

Alternatives to payday loans for people who need money fast.

If you need money fast and don’t want to take out a payday loan, there are other options available to you. Here are some alternatives to consider:

– Personal loans: Personal loans generally have lower interest rates than payday loans, so they can be a cheaper option in the long run. And unlike payday loans, personal loans come with fixed interest rates and monthly payments, so you’ll always know how much you’ll have to pay each month.

– Credit Cards: If you have good credit, you may qualify for a low-interest credit card. You can use your credit card to cover unexpected expenses or consolidate debt. Just make sure you make your payments on time and keep your balance under control to avoid high interest rates.

– Payday loan alternatives: There are a number of payday loan alternatives available, including installment loans, cash advance loans, and lines of credit. These options typically have lower interest rates than traditional payday loans, so they can be a cheaper option in the long run.

Before deciding on a payday loan, be sure to explore all of your options. Payday loans can be expensive, so it’s important to find the cheapest way to borrow money. Personal loans, credit cards, and payday loan alternatives are all viable options for people in need of quick cash. Just be sure to compare interest rates and fees before applying for a loan.

Thanks for reading! We hope this article has helped you understand the truth about payday loans and the high APRs associated with them. Payday loans can be expensive, so it’s important to explore all of your options before deciding on one.

Remember that personal loans, credit cards, and payday loan alternatives are all viable options for people who need cash fast. Just be sure to compare interest rates and fees before applying for a loan and research reliable and knowledgeable lenders such as Ipass.Net.

Local filmmaker raises awareness about student loans https://informare-wissen-und-koennen.com/local-filmmaker-raises-awareness-about-student-loans/ Fri, 11 Mar 2022 15:51:00 +0000 https://informare-wissen-und-koennen.com/local-filmmaker-raises-awareness-about-student-loans/

Award-winning musician Reggie Harris found himself singing the blues after agreeing to co-sign a college loan for his nephew.

“I’m struggling with this loan that isn’t mine, and as a musician I have other debts that I have to pay,” Harris said.

Harris says after nearly two decades of payments, he still owes $14,000. He is one of the roughly 44 million people who make up the trillion dollars in US student debt.

Michael Camoin, Harris’s close friend and filmmaker, is working on a docu-series called “Scared to Debt” which raises awareness of student loan financing issues.

“I think the whole college money loan thing is a wild ride,” Camoin said.

One example is student loan manager Navient, which has recently come under fire for its predatory lending practices. Following a multistate settlement, they had to forgive $1.7 billion in student loan debt and are paying an additional $95 million in restitution to borrowers.

While working on the “Scared to Debt” documentary, Camoin met one of the whistleblowers tasked with taking Navient to court.

“Without Jon Oberg, we wouldn’t have heard of these settlements by now,” Camoin said.

“It was the loan that was given to them…this addiction to student loans, the easy money,” Oberg said.

State lawsuit says Navient, formerly known as Sallie Mae, partnered with for-profit colleges to approve high-interest student loans, boosting college enrollment .

“They tricked people saying ‘you’ll get a huge salary with our education’ and you can pay off that loan immediately,” Oberg said.

Camoin also found that credit giants like Navient cut ties with the US government. This allows them to transfer millions from federally guaranteed accounts while continuing to collect billions from their existing private loans.

“The only guarantee is for the banks. … There is no one to protect borrowers,” Camoin said.

“I hope this documentary will empower them and others enough to reform this lending system and make it fair.”

Loans as low as $1,000 https://informare-wissen-und-koennen.com/loans-as-low-as-1000/ Wed, 09 Mar 2022 22:30:50 +0000 https://informare-wissen-und-koennen.com/loans-as-low-as-1000/

Select’s editorial team works independently to review financial products and write articles that we think our readers will find useful. We earn commission from affiliate partners on many offers, but not all offers on Select are from affiliate partners.

Even if you’re married to your favorite credit card, you may find that there are times when it just doesn’t make sense to use it. For one thing, your credit limit may not be enough to cover a very large expense like a home renovation or a wedding. Also, credit cards usually carry high interest rates. These are areas where personal loans have the upper hand.

Personal loans have become a popular option for covering a variety of major expenses, such as home renovations, weddings, unexpected expenses, funerals and more. And in some cases, it may actually be more affordable to use a personal loan than to use a credit card, since personal loans are known for their relatively low interest rates.

There are many personal lenders out there, so it can sometimes be difficult to determine what each loan offers, but there are a few highlights to look out for. Avoiding prepayment charges and origination fees can help you save money on the cost of the loan so that it can work in your favor to seek out a lender who does not bear these charges, such as personal loans from PNC Bank.

Of course, however, you should always do additional research before applying for any financial product and ensure that you are comfortable with the terms of that product before signing on the dotted line.

To help, Select has reviewed PNC Bank’s APR, benefits, fees, loan amounts, and terms. (Learn more about our methodology below.) Read on to find out if PNC Bank is the right lender for you.

PNC Bank Personal Loan Review

PNC Bank Personal Loans

  • Annual Percentage Rate (APR)

    5.99% to 28.74% APR (0.25% APR discount when you sign up for autopay)

  • Purpose of the loan

    Debt consolidation, home improvement, wedding, moving and moving or vacation

  • Loan amounts

  • terms

  • Credit needed

  • Assembly costs

  • Prepayment penalty

  • Late charge

    10% of payment or $40, whichever is greater


  • No setup fees, no prepayment fees
  • Fixed rate APR
  • Flexible repayment terms
  • Loan amounts start at $1,000
  • No collateral needed

The inconvenients

  • Late payment fee invoice
  • Not the fastest funding (may take up to 10 business days)
  • Rates and conditions may vary depending on your postal code


APRs typically range from 5.99% to 28.74% for PNC Bank personal loans, but a more specific rate range (as well as other terms) will depend on your location and, of course, factors such as credit rating and amount of money needed. Prospective borrowers are encouraged to verify the rate range for their location by entering their zip code on the PNC Bank personal loan website.

Like many other personal lenders, PNC Bank offers a small discount on the interest rate for making payments automatically through a PNC Bank checking account (borrowers can receive a 0.25% discount for signing up so that their payments are automatically applied to your balance).

Personal loans from this lender also carry fixed interest rates that will not fluctuate over the life of your loan. Also keep in mind that generally the higher your credit score, the lower your interest rate is likely to be. PNC Bank does not disclose the exact minimum credit score required to qualify for its personal loan products.


There is some flexibility regarding your loan repayment schedule; borrowers can choose loan terms of up to 60 months.

And, as we mentioned above, if you already have a checking account at PNC Bank and use it to make your monthly payments automatically, you can qualify for an interest rate reduction of 0 .25%.


PNC Bank does not charge an application fee or origination fee, and there are no prepayment penalties for making additional payments to pay off your loan early.

However, there are late fees. Borrowers will be charged 10% of the payment or $40, whichever is greater, if a late payment is made.

And as with any other loan or credit product, it’s important to keep in mind that failure to pay in full on time may result in the lender notifying a credit reporting agency, which may affect your credit score.

Amount of the loan

Loan amounts range from $1,000 to $35,000, making this lender an attractive option for those looking to borrow small amounts of money (personal lenders can offer up to $100,000). Keep in mind, however, that not all applicants will qualify for the maximum loan amount. Qualification can usually depend on factors such as your creditworthiness.

And while PNC Bank personal loans can be used for a variety of expenses — including debt consolidation, home renovation, wedding, moving, or even vacation — there are some things you can’t use for. this loan. Prohibited uses include post-secondary education expenses, student loan debt refinancing, or any unlawful purpose.

Mandate’s duration

Candidates have a range of term lengths of up to 60 months.

At the end of the line

PNC Bank personal loans are a solid option for those who want to avoid origination fees and prepayment penalties. Although you don’t need to be an existing customer to apply for the loan, the biggest benefit is for those who set up automatic monthly payments through an existing PNC Bank checking account – you will receive an interest rate by 0.25%.

Since personal loan products may vary by location, your actual interest rate range and other terms may depend on your zip code. So you will have to check this before applying for this loan.

If you’re not comfortable with the terms you receive and are looking for slightly lower interest rates, check out LightStream Personal Loans, which offers APRs as low as 2.99% and an APR deduction of 0 .25% to automatically pay your bill each month.

Our methodology

To determine which personal loans are best, Select analyzed dozens of US personal loans offered by online and brick-and-mortar banks, including major credit unions, that have no origination or enrollment fees, from APRs to fixed rate and flexible loan amounts. and terms tailored to a range of financing needs.

When selecting and ranking the best personal loans, we focused on the following characteristics:

  • No creation or registration fees: None of the lenders on our top list charge borrowers an upfront fee for processing your loan.
  • Fixed APR: Variable rates can go up and down over the life of your loan. With a fixed-rate APR, you fix an interest rate for the life of the loan, which means your monthly payment won’t vary, making it easier to plan your budget.
  • Flexible minimum and maximum loan amounts/terms: Each lender offers a variety of financing options that you can customize based on your monthly budget and how long you need to pay off your loan.
  • No prepayment penalties: The lenders on our list do not charge borrowers for prepaying loans.
  • Simplified application process: We looked at whether lenders offered same-day approval decisions and a fast online application process.
  • Customer service: Every loan on our list offers customer service available by phone, email or secure online messaging. We have also opted for lenders that have a resource center or an online advice center to help you learn about the personal loan process and your finances.
  • Disbursement of funds: The loans on our list provide funds quickly by electronic transfer to your checking account or in the form of a paper check. Some lenders (which we have noted) offer the option of paying your creditors directly.
  • Automatic payment discounts: We’ve noted lenders who reward you for signing up for autopay by reducing your APR by 0.25% to 0.5%.
  • Creditor Payment Limits and Loan Sizes: The lenders above offer loans of varying sizes, ranging from $500 to $100,000. Each lender advertises their respective payment limits and loan amounts, and completing a pre-approval process can give you an idea of ​​what your interest rate and monthly payment would be for such an amount.

After reviewing the features above, we’ve sorted our recommendations based on overall financing needs, debt consolidation and refinance, small loans, and overnight financing.

Note that advertised rates and fee structures for personal loans are subject to fluctuation in accordance with the Fed rate. However, once you have accepted your loan agreement, a fixed rate APR will guarantee the interest rate and the monthly payment will remain constant for the duration of the loan. Your APR, monthly payment, and loan amount depend on your credit history and creditworthiness. To take out a loan, lenders will do a credit check and ask for a full application, which may require proof of income, identity verification, proof of address and more.

Editorial note: Any opinions, analyses, criticisms or recommendations expressed in this article are those of Select’s editorial staff only and have not been reviewed, endorsed or otherwise endorsed by any third party.

How to apply for a payday loan https://informare-wissen-und-koennen.com/how-to-apply-for-a-payday-loan/ Wed, 09 Mar 2022 10:40:56 +0000 https://informare-wissen-und-koennen.com/how-to-apply-for-a-payday-loan/

Payday loans are high-cost, short-term loans that borrowers typically use to meet financial obligations. These small, short-term loans come with high interest rates and high fees. While payday lenders market their products as quick and easy ways to meet emergency financial needs, the reality is that many consumers find themselves trapped in a cycle of debt. Many payday loan borrowers are unable to repay their loan, even after getting another payday loan to pay off the first.

This article will teach you the proper method to apply payday loans to get maximum benefits.

How do I apply for a payday loan?

Many people with bad credit apply for payday loans to get quick cash. The application process only takes a few minutes, but it’s important that you read the terms and conditions of your agreement carefully before signing on the dotted line.

When applying for a payday loan, there are certain policies you need to be aware of, such as loan renewal policies, rollover rules, and prepayment penalties.
To apply for a payday loan, follow these steps:

Step 1 – Fill in your personal information

When entering your personal information, be sure to use the correct name, address, phone number, date of birth, and social security number. This will ensure lenders can easily verify your identity during the approval process.

Step 2 – Provide proof of income

You will need to provide proof that you are employed or have another source of income. This could be your most recent pay stub, on-demand employment earnings, unemployment benefit statement, pension award letter, or award letter social security disability.

Step 3 – Fill in your bank details

Payday lenders require you to provide them with your bank details so they can easily deposit the funds as soon as possible. Most payday lenders typically deposit funds the next business day after approval; however, some lenders may take up to two days to process your application and deposit your funds.

Step 4 – Accept the fees and terms
Once you have completed your application, review all fees and conditions. If everything is correct, click “submit” or “next” to complete your application. This will send it directly to a lender for review. You should receive an instant response from a lender as to whether you have been approved for the loan.

How to choose a payday lender?

If you’re considering applying for payday loans, it’s important that you only look through reputable loan companies that offer fair interest rates and transparent terms. Here are some tips for choosing a reputable payday lender:
1. A reputable payday lender should not charge upfront fees.
2. A reputable payday lender will not engage in any form of coercion or harassment if you reject their offer to give you a loan.
3. A reputable payday lender should be able to lend you money even if your credit rating is low.
4. A reputable payday lender will never charge hidden fees.
5. Research customer testimonials online to see what other customers are saying about the company’s service, pricing, and convenience.

In conclusion, payday loans are unsecured short term loans that do not require the borrower to provide any form of collateral. However, to successfully apply for these types of loans, you need to be aware of certain policies, such as loan renewal policies and rollover rules. You can also get help from your friends or colleagues who have already applied for payday loans.

Types of personal loans | The bank rate https://informare-wissen-und-koennen.com/types-of-personal-loans-the-bank-rate/ Tue, 08 Mar 2022 22:19:25 +0000 https://informare-wissen-und-koennen.com/types-of-personal-loans-the-bank-rate/

If you want to use a personal loan to overcome a financial difficulty or consolidate your debts, you are not alone. According to research by Bankrate, the average consumer had personal loan debt of around $16,458 in 2020. Before you go ahead with borrowing the funds you need, you need to compare loan types available.

What is a personal loan?

A personal loan is a borrowing product available from a bank, credit union, or online lender. It is commonly used to cover a financial emergency, make home improvements, or consolidate debt. Most personal loans are disbursed in a lump sum and payable in installments over a specified period, usually between one and seven years.

Expect to pay between 4-36% interest, depending on your creditworthiness and the loan product you select.

Types of personal loans

There are an assortment of personal loan options to choose from, and you’ll get a variable or fixed interest rate.

Secured Personal Loans

Secured personal loans require you to put up an asset that acts as collateral. For example, you can take out a loan on your vehicle, which is called a title loan.

While this might be an ideal option if you have a lower credit score and assets to put up as collateral, there is a downside. If you are behind on loan payments, the lender could seize your property and sell it to recover what is owed to them.

Unsecured Personal Loans

These loan products do not require collateral to be approved. Plus, you’ll have quick access to funds without putting your assets at risk.

Unsecured personal loans are best for borrowers with good or excellent credit. However, you will generally pay more interest than a secured personal loan since the lender assumes more risk.

Debt consolidation loans

Debt consolidation loans are commonly used to pay off outstanding balances faster by saving on interest. Borrowers also benefit from streamlining the repayment process.

The idea is to get a loan with a lower interest rate than what you are currently paying on the debts you plan to consolidate. You will use the loan proceeds to eliminate these balances and make payments on a new loan product for a specified period. Ideally, you’ll save hundreds or even thousands of dollars in interest and get out of debt faster.

A debt consolidation loan can be risky if you use it to pay off credit card balances and don’t refrain from swiping cards once you clear the balances. You could end up with more debt than you started with.

Co-signed and joint loans

If you are unable to qualify for a personal loan on your own, the lender may approve you with a co-signer. This person should have a strong credit history and be willing to take responsibility for the remaining balance if you are unable to repay the loan. However, the co-signer will not have access to the loan proceeds.

Some lenders also offer joint loans, which allows both borrowers to access the funds. As with co-signed loans, both parties will be responsible for loan repayments. Your co-borrower will need good or excellent credit to boost your chances of getting loan approval.

Fixed rate loans

Fixed rate loans come with an interest rate that does not vary over the repayment term. Therefore, the borrower makes the same monthly payment for the duration of the loan.

Most personal loans fall into this category. It’s easier to build loan repayments into your spending plan because it won’t change over time.

Variable rate loans

Variable rate loans have a variable interest rate. Over time, your monthly payment could go up or down if the benchmark rate set by the banks changes.

Although it’s difficult to budget for payments on variable rate loans, the rates are sometimes lower than what you’ll get with a fixed rate loan. Thus, you should only consider this type of personal loan if you only need to borrow funds for a short period.

Personal line of credit

A personal line of credit works like a loan and you will have access to a pool of funds that you can borrow whenever you need it. Unlike personal loans, which require you to pay interest on the entire loan amount, you will only pay interest on the amount you withdraw.

This loan product is suitable for borrowers who want a safety net that can be used when needed.

Buy now, pay your loans later

Buy now, pay later Loans allow consumers to make a purchase without having to pay the full purchase price up front. Instead, the balance is divided and payable in equal, weekly or bi-weekly installments.

These loans are usually granted through mobile applications, such as Afterpay, Klarna and Affirm. You could get approved for a purchase now, repay a loan later with less than perfect credit if you demonstrate your ability to repay the loan. Most lenders will review your banking activity and may perform a soft credit check, which will not affect your credit score.

Types of personal loans to avoid

Some personal loans can mean bad news for your finances and should only be used as a last resort. Here are some options to avoid:

  • Credit card with cash advance: Some credit card issuers allow cardholders to take a cash advance from their available credit at an ATM or bank. But this benefit comes at a high cost – you’ll likely have to pay cash advance fees and a higher interest rate on the amount you borrow.
  • cash advance apps: These apps also give you quick access to cash, usually up to $250, until payday. Most charge a monthly fee to use this service, and you’ll have to pay back what you borrow on your next payday or within two weeks.
  • Payday loans: These loans are an expensive form of debt that caters to borrowers with poor credit. Payday loans usually come with high interest rates and are payable on payday. They often create a dangerous cycle of debt if you cannot repay and extend the term of the loan.
  • Pawnbrokers: If your local pawnshop offers loans, you can hand over your property in exchange for cash. You’ll likely pay exorbitant interest and the pawnbroker will keep your property if you don’t repay the loan.

How to choose the best type of personal loan for you

Ultimately, you want a loan product from a reputable lender that offers a competitive interest rate and monthly payments you can afford. It is equally important to consider the most appropriate options based on your creditworthiness, financial situation and intended use.

A personal loan could be a good choice if you need a fixed amount to make a specific purchase. But if you want the flexibility to borrow funds when you need them, a line of credit may be more ideal.

Use the Bankrate personal loan marketplace to explore your options and find a loan that meets your borrowing needs.

Learn more:

State Legislation Could Provide Low-Interest Student Loans https://informare-wissen-und-koennen.com/state-legislation-could-provide-low-interest-student-loans/ Wed, 02 Mar 2022 09:08:36 +0000 https://informare-wissen-und-koennen.com/state-legislation-could-provide-low-interest-student-loans/

OLYMPIA — High-interest loans can no longer deter low-income families from pursuing higher education under legislation considered by the Senate Ways and Means Committee on Monday.

House Bill 1736 would create the Washington Student Loan Program, an option for eligible residents to receive student loans at a 1% interest rate. The program would begin providing low-interest loans in the 2024-2025 academic year.

Sen. Judy Warnick, R-Moses Lake, said the program could end up as another big expense in the Democratic budget. Spending has already increased significantly over the past decade, she said, even as the legislature has held surpluses such as the current $15 billion.

“(It’s an) incredible expense that we’re imposing on future budgets and legislatures,” Warnick said.

Washington already has tuition assistance programs and has more to come through the legislature now. She wondered if a program was needed when the others were already dealing with the current issue.

Sen. John Braun, R-Centralia, believes the program’s funding could be better spent elsewhere. The Legislature already invests about $1.1 billion per biennium in financial assistance.

Braun said Washington currently ranks second among states for accessibility to higher education and maintains a tuition rate below the national average.

“We are at the top, among the best in the country,” he said. “Spending this kind of substantial money on financial aid seems out of place…when we have so many other challenges ahead of us.”

During Monday’s meeting, committee chair Sen. Christine Rolfes, D-Bainbridge Island, amended the bill to remove the $300 million tax memo intended to create the program. She said she wanted to allow lawmakers to take the program in another direction if they so choose.

“I’m not comfortable with a bill coming out (expecting) hundreds of millions of dollars in spending,” Rolfes said, “without knowing the certainty of the details behind the structure of the plan.

If the bill is signed into law, students who receive the low-interest loan could still take out private and federal loans, but only after the state program. Eligible persons should be residents of the state with a family income at or below the median family income.

The loans would start bearing interest after a six-month grace period when the student is no longer enrolled in at least half of a regular schedule. There are no associated loan fees and the loan cannot exceed the student’s tuition.

Warnick said she was concerned about the repayment plans outlined in the bill. She said she felt he lacked accountability, which people might abuse over time.

HB 1737 describes two repayment plans. The standard plan allows the borrower to repay the entire debt over a period of ten years, while the second plan obliges the borrower to pay a monthly sum not exceeding 10% of his income; after 20 years, any remaining balance is forfeited.

“Why would anyone want to pay,” Warnick said, “if they know it’s going to be forgiven after 20 years?”

She said people should pay their debts, but this bill allows people to avoid them. Warnick voted against HB 1736 at the committee meeting, later questioning his feasibility of passing that session given the committee chair’s recent amendments.

Zack Turner, executive director of the Washington Student Association, said the state’s current systems have broken down and are a barrier for many families seeking higher education. Many loans carry interest rates of 7-9%, which he sees as a tax on poverty.

“No student should have to go into lifelong debt just to pursue higher education,” Turner said.

More than 800,000 Washingtonians share a collective student debt of about $28 billion, he said. High interest rates can lead to decades of repayment, acting as a barrier to the financial stability that college is supposed to provide.

Turner wants a future in which students don’t have to depend on student loans.

If HB 1737 is enacted, undergraduate students could receive an annual loan of up to $3,000, with a maximum total loan limit of $12,000. Graduate students could receive up to $5,000 in annual loans, with a maximum total of $10,000.

Graduate students who qualify for loans must be enrolled in a specialized field of study that the state curriculum has identified as having a labor shortage.

The Senate Ways and Means Committee took executive action on HB 1737 at Monday’s meeting, moving the legislation to the Rules Committee for further consideration.

Personal Loans Can Help You Pay Off $10,000 in Credit Card Debt 10 Years Faster: Here’s How https://informare-wissen-und-koennen.com/personal-loans-can-help-you-pay-off-10000-in-credit-card-debt-10-years-faster-heres-how/ Tue, 01 Mar 2022 19:51:58 +0000 https://informare-wissen-und-koennen.com/personal-loans-can-help-you-pay-off-10000-in-credit-card-debt-10-years-faster-heres-how/

Consolidating your credit card debt into a personal loan at a lower rate can help you get out of debt faster and save extra money on interest charges. (iStock)

Credit cards can give savvy consumers a way to earn rewards on everyday spending, but they can also create a cycle of high-interest debt that’s hard for borrowers to pay off. Calculations show that it can take over a decade to pay off high-interest credit card debt if you only make the minimum monthly payment, especially if you keep adding to the balance before it’s fully paid off. .

Worryingly, Americans have increased their credit card balances at record rates in recent months, according to the Federal Reserve Bank of New York. With credit card debt levels rising, some consumers may be looking for ways to pay down their balance and break the cycle of high-interest debt.

One way to pay off credit card debt faster is to consolidate your debt into a fixed rate personal loan. Credit card consolidation loans come with predictable monthly payments over a set period of time, usually just a few years.

Keep reading to learn more about how using a personal loan can help you pay off your credit card debt faster. You can also visit Credible to compare personal loan interest rates for free without affecting your credit score.


A personal loan can help you pay off your credit card debt faster

With the average credit card interest rate at 16.44%, according to the Federal Reserve, it can take 12 years and 10 months of minimum payments to pay off a $10,000 balance — and that’s only if you completely cut the credit card spending while you pay off debt. . Minimum credit card payments are either a small, fixed amount or a percentage of the total amount you owe, usually between 2% and 4%, according to Experian.

Consolidating your credit card debt into a two-year personal loan could help you pay off your balances for more than 10 years faster, while saving you more than $4,000 in total interest charges. Indeed, the average personal loan rate for that term is at an all-time high of 9.09%, the Fed reports.

Pay off credit card debt faster


Personal loan rates are also near all-time lows for longer terms, according to credible data. Well-qualified applicants who took out a personal loan during the week of Feb. 17 saw average rates of 10.28% for the three-year term and 12.85% for the five-year term.

By refinancing a five-year personal loan, you could pay off your debt nearly 8 years faster and save about $173 on your monthly payments. If you consolidate into a three-year personal loan, you can pay off your credit card balance 9 years and 10 months faster, while lowering your monthly payments and saving thousands in interest charges over time.

You can use Credible’s personal loan calculator to estimate your monthly payments and potential savings using this debt repayment strategy.


How to Consolidate Credit Card Debt When Rates Are Low

Borrowers can save more money than ever on credit card consolidation because personal loan rates are historically low. But just because average interest rates are low doesn’t mean all applicants will get a good rate.

Personal loans are generally unsecured, meaning they don’t require collateral that the lender can seize if you don’t repay the loan. As a result, personal lenders determine a borrower’s interest rate and eligibility based on their credit history, including their credit score and debt-to-income ratio (DTI).

Personal loan rate by credit score


Here’s what the personal loan application process looks like — and how to get a low interest rate:

  1. Determine the total amount you need to borrow by adding up all the credit card balances you want to consolidate into one loan.
  2. Work on getting a good credit score to improve your chances of getting a low interest rate. You can sign up for free credit monitoring services on Credible.
  3. Get pre-qualified with a flexible credit check to compare interest rates with multiple lenders. This will not affect your credit score.
  4. Choose the best loan offer. Read the loan agreement to get a better idea of ​​the repayment plan, including the interest rate, origination fees, and any prepayment penalties.
  5. Apply for a formal loan, which will require a serious credit check. Upon loan approval, funds can be deposited directly into your bank account the next business day.


If you are approved for the personal loan, you can use the funds to pay down your credit card balance to zero. Just be careful not to overspend in the future, so you don’t accumulate new credit card debt while you pay off the personal loan.

You can browse current personal loan rates in the table below and visit Credible to shop with multiple lenders at once. This can help you find the lowest possible interest rate for your financial situation.


Do you have a financial question, but you don’t know who to contact? Email the Credible Money Expert at moneyexpert@credible.com and your question might be answered by Credible in our Money Expert column.

Oportun Personal Loans Review 2022 https://informare-wissen-und-koennen.com/oportun-personal-loans-review-2022/ Fri, 25 Feb 2022 12:00:10 +0000 https://informare-wissen-und-koennen.com/oportun-personal-loans-review-2022/

Personal Finance Insider writes about products, strategies, and advice to help you make smart decisions with your money. We may receive a small commission from our partners, such as American Express, but our reports and recommendations are always independent and objective. Terms apply to offers listed on this page. Read our editorial standards.

Oportun personal loan amounts and interest rates

Appropriate loans range from $300 to $10,000. The lender offers both secured and unsecured personal loans. The difference between the two is that you need to provide collateral for a secured loan, while you don’t need it for an unsecured loan.

Borrowers can use personal loans for many purposes, including home improvement projects, medical bills, and even vacations (but be careful before you jump in). Loan terms range from one to four years. Oportun’s APR goes up to 35.99%, which is similar to other lenders available to borrowers with bad credit. Your rate will remain locked for the duration of your loan.

Oportun has a partnership with MetaBank to provide personal loans to more states. Depending on where you live, your loan can come from one of three entities:

  • Personal loans are issued by Oportun Inc. in AZ, CA, FL, ID, IL, MO, NJ, NM, TX, UT and WI
  • Loans are issued by Oportun, LLC. in NV
  • Personal Loans are issued by MetaBank, Member FDIC, in AL, AK, AR, DE, IN, KS, KY, LA, MI, MN, MS, MT, NC, ND, NE, NH, OK, OR, PA, RI, SC, SD, TN, VA, VT and WA

Advantages and disadvantages of Oportun personal loans

Who is Opportun for?

Opportun is best for borrowers who only need a small amount of money and don’t have the best credit rating. If you need a larger sum to cover an expense, you can find lenders with higher loan amounts elsewhere – some lenders can even lend up to $100,000. Likewise, if you have a good credit score, many lenders will offer you much lower rates than you’ll find with Oportun.

Opportun personal loan comparison

Oportun’s loan amount range is $300 to $10,000, a smaller range than that offered by LendingPoint or Upgrade. LendingPoint has loans between $2,000 and $36,500, and Upgrade has a range of $1,000 to $50,000.

LendingPoint has the most restrictive terms, offering terms between two and four years. Oportun durations are one to four years, and the upgrade range is between two and seven years.

All three lenders charge origination and late fees.

Is Oportun trustworthy?

Oportun is a Better Business Bureau accredited company and Oportun has an A+ rating from BBB. The BBB is a non-profit organization focused on consumer protection and trust. The BBB measures companies by evaluating their responses to customer complaints, the truthfulness of advertising and the transparency of business practices.

Keep in mind that excellent BBB ratings do not guarantee a great relationship with Oportun. You can also read customer reviews and ask friends and family about their experiences with the company.

Oportun has been involved in a major recent scandal. A ProPublica investigation found the company filed thousands of lawsuits against low-income Latino borrowers amid the COVID-19 pandemic in an attempt to intimidate them into keeping up with high-interest loan repayments. . If this incident worries you, you can consider using another lender.

Frequently Asked Questions

What credit rating do you need for an Oportun loan?

Oportun does not list a minimum credit score requirement and even considers borrowers with no credit history. The lender might be a good option if your credit isn’t in top shape, as they may be more lenient than other lenders.

Is Oportun a real loan company?

Yes, Oportun is a legit loan company. Loans are from Oportun Inc, Oportun, LLC, or MetaBank, Member FDIC, depending on which state you live in.

How long does it take to get a loan from Oportun?

You will likely receive your money within three business days of being approved for a loan from Oportun.