Why Should You Avoid Georgetown Funding?
Georgetown Funding personal finance and debt consolidation offers are bait and switch. Georgetown Funding has begun flooding the market with debt consolidation and credit card relief offers in the mail with the website My Georgetown Funding. The problem is that the terms and conditions are at the very least confusing, and possibly even suspect.
The interest rates are so low that you would have to have near-perfect credit to be approved for one of their offers. Best 2020 Reviews, the personal finance review site, has been following Georgetown Funding, Tate Advisors, Plymouth Associates, Credit 9, Americor Funding, Safe Path Advisors, Silvertail Associates, etc.).
Best 2020 Reviews closely monitors personal loan offers, debt reduction, and credit card consolidation offers sent through direct mail to consumers.
Technology and online services have made it very convenient for us to apply for loans. You no longer have to wait weeks or months to know if you have qualified or not.
Affordable rates and the prospect of financial ease makes it tempting to take out a personal loan. It could allow you to reduce your financial stress, rearrange your finances or finally let you fulfill a life-long goal.
Before you go and apply for one, there are a few things you should know.
What are Personal Loans?
To take out a personal loan means to borrow a certain amount of money from a bank, credit union or online lender. The borrowed sum has to be repaid as fixed weekly or monthly payments over a few years.
Personal loans are usually unsecured loans that do not require you to put up personal assets as collateral. Secured loans require some form of asset, for example, your house, car or any real-estate property, as collateral that can be repossessed if you miss out on payments.
An interest rate and fees have to be paid in addition to the borrowed amount of money. The terms, cost and repayment plan vary with the financial institution you approach for a loan.
Personal loans can be obtained in a matter of a few days, depending on your qualification and requirements.
How Do You Take Out a Personal Loan?
Certain conditions need to be met to qualify for an unsecured personal loan. It would be helpful to have a high credit score. The lender also looks at your monthly income, your past financial history and how well you could pay off debts.
Banks, credit unions and private lenders have their own specific qualification requirements and eligibility criteria. Lenders can be strict or lenient with their repayment policies – the size of the loan changes with the type of loan and your financial stability.
It would be best if you searched for a lender that offers your preferred interest rates and repayment terms. They will ask you to submit a complete application, along with your personal information, income verification documents and loan details.
Is a Personal Loan Right for You?
The first thing you should take a look at when considering to take out a personal loan is your financial budget. Can your monthly income support you enough to pay off installments?
You can apply for a personal loan for any legal reason, whether business, leisure, investments or purchasing. That being said, it is important to consider if a personal loan correctly suits your purpose.
Different loans exist for different purposes. Mortgages are suited for real estate purchases, car loans for automobile purchases and student loans for educational purposes. They give benefits specific to their purpose, which a personal loan does not. For example, federal student loans have a very low interest-rate. If you take out a personal loan in this scenario, it will only end up costing you more in the long run.
Circumstances Where You Can Take Out a Personal Loan
1. Emergency Medical Expenses
Since personal loans can be obtained quickly, they are suitable to cover any unforeseen medical expenses. Major injuries, dental work, cosmetic surgery, chronic illnesses, fertility treatments and other procedures can have high medical expenses. Personal loans can help cover those at short notice. Make sure to avoid debt consolidation scams.
2. House Remodeling
If you wish to upgrade your home, remodel the kitchen floor, build a swimming pool in your backyard, a personal loan can help you achieve that. You won’t have to wait to save up a large sum to build your dream house.
3. Planning a Big Move
Changing your residence for personal, business or career purposes can be costly if you’re moving long-distance. Coupled with renting out a new place, purchasing furniture and necessities, it may be in your interest to take out a personal loan. This ease in financial burden will help you focus more on the other major changes in your life.
4. Special Occasions
Engagements, weddings, having children are all life goals, however costly. Personal loans are useful in this sense to let you enjoy your present as comfortably as possible. It allows your savings to be untouched for your future, whether for your retirement plan or a vacation.
5. Taking a Break
Everyone enjoys a vacation now and then, but not everyone prefers spending their life saving on it. If you want to treat yourself by taking a break and planning a luxurious cruise or a European tour, it may be in your interest to take out a personal loan.
6. Pay Off Your Debts
Debt consolidation is one of the primary reasons people choose to apply for a personal loan. The monthly payments add a strain on their income, and using a loan to pay off the debt can give them peace of mind and reduce stress. It is far simpler to combine all outstanding balances into a single monthly payment.
7. Funeral Expenses
Funerals can bring an unexpected expense that could be difficult to cover without a loan. Funeral home services, burial plot, casket and even the deceased’s outstanding expenses need to be paid for by the family members.
Crixeo, a popular personal finance review site, has recently started following debt consolidation and personal loan companies like Fiona, 5k Funds, SPF Saves, and Tripoint Lending.
Takeaway
You can work out other aspects in your budget that will negate your need to take out a personal loan. Make a habit of spending less than your monthly income. You could also get another job, rent out a spare room, or borrow some funds from friends or family.
Not everyone’s finances give them enough leeway to pay off a loan for years comfortably. Ironically, the APR rates on personal loans could have you collecting more debt than you paid off. Therefore, you need to ask yourself if a personal loan is suitable for you.
You should do your research, carefully weigh your options, and make a responsible decision when considering to take out a personal loan. Your financial future for the next few years is dependent on it.