3 Types of Loans That Can Help You Get Out of Debt Think real estate
Have you ever noticed how many credit card offers you start getting when your finances are a little tight? It’s as if they know every little detail about you and like vultures circling around for the feast. This is often what it feels like even if it is not exactly the case. The reason is that during such times we become desperate and start looking for anything that could help us get out of a traffic jam. We’re starting to ignore the fine print because we don’t want to know the interest rate. We don’t want to know how bad the deal is.
Internally, we know that most offers to help us get out of financial trouble are going to really deepen us. We get so many mixed messages that it’s hard to know what and who to believe when the walls start to close. The people who tell you not to get a payday loan are usually people who have never needed one. This is really easy advice for them to give. But they don’t really offer you a better way forward. While it may be hard to believe, there are actually loans that can help rather than hurt. Here are three:
Sometimes a sale can be a leaseback loan. It’s a sell the house option that allows you to continue living in the house. You have sold the house and you decide to stay there under a rental agreement. In the meantime, you get 75% of the upfront sale price to do as you see fit while the rest is spent on the lease option. If times are financially tough, this option can put a substantial amount of money in your pocket without leaving you destitute. You are free to redeem if things change for the better. It can also serve as a smooth transition from a property model to a rental model.
Not all home loans are this good. Some loans will leave you with too little money to get the help you need and make repayment of the loan almost impossible due to forfeiture conditions. You will find yourself with no home and no money to get by. So be sure to check the fine print before signing on the dotted line. When the sale is also the loan, you have the tools to substantially improve your situation.
It can be difficult to get a good emergency loan, especially emergency loans for single mothers with bad credit. Yet this is often the person who needs the loan the most. They could be in this situation through no fault of their own. But they are the ones who have to cope, not just for them, but for the child who is totally dependent on them.
The key to emergency loans is being able to pay them back as quickly as possible. Once the interest starts to build up, so do the problems. This is the type of loan that one might have to get when their utilities are disconnected. You want to get the loan before the disconnection because it is always much more expensive to have it reconnected than to stop the disconnection. For larger loans for things like rent assistance, check with your local housing authority for options. There are always options.
A debt consolidation loan
A debt consolidation loan is specially designed to take all of your high interest credit card debt and consolidate it into one payment per month at a much lower interest rate. This means that you will be saving a lot of money each month while keeping your bills and rebuilding rather than destroying your credit. It’s the kind of win-win solution that anyone with high interest rate debt should consider.
Leasebacks, emergency loans, and debt consolidation loans are just the tools to help you when life gets a little too tough. Remember that loans are only temporary solutions that will help you while you put in place long term solutions.