Deciding Which Loan To Take Out

As soon as I realized that my personal financial picture was a little bleak, I started thinking about taking out a personal loan. I wasn't really looking forward to going into debt, but I knew that if I wanted to solve a few short-term problems, a loan would be the way to go. I talked with a few of my local financial institutions to get a good idea of what they could offer me, and then I sat down to go over the paperwork. It was incredible to see how much money I could save by securing a lower interest rate. Check out my blog for more information about loans.

What To Do When The Collectors Are Calling


If you have fallen into financial distress, knowing that you owe people and businesses money can be a paralyzing situation. It's common to feel anxious and worried when collection agencies call or send you mail. You might be embarrassed, frustrated and concerned for your future. If you are in this predicament, taking a few steps can help minimize your stress levels and get you back on the road toward a better financial future.

Know Your Rights

The Fair Debt Collection Practices Act was established in 1996 to protect people who owe debts. You don't have to worry that debt collectors will call you in the middle of the night, make personal threats or divulge your financial information to your roommates, family members or coworkers. Collection mail must be sent in an envelope, never a postcard. Collectors cannot call you at work if you tell them not to. You can even request, in writing, that they cease communication with you altogether.

Knowing your rights can help you calm down and stop the cycle of panic. Even though you are in collections and not able to pay your bill, you must be treated fairly by those attempting to collect the debt.

Talk to Your Creditors

Many times, people try to avoid their creditors when they owe money. Don't do this! First, your creditors have no choice but to continue to try contacting you if you are answering the telephone or returning calls. If you answer the phone and talk to them, or, better yet, call them on your own, you may find that they are very amenable to making payment arrangements. Once arrangements are made, collection calls should stop, as long as you adhere to the agreement.

In some cases, payment arrangements are not permitted, but by explaining the situation, the creditor can let you know if there are other options. If it is your mortgage company, for example, homeowners assistance may be possible. If you have defaulted on a car loan, you might be able to arrange to turn in the car to avoid a traumatic repossession from taking place in your driveway or office parking lot.

Gather Up the Funds You Can

It's possible that you might be able to pay off some of your bills by making a concerted effort to gather up additional funds. For example, some people choose to take on a part-time job in the evenings and to put that income toward debts. You might also have luck selling extra items around the house.

If your financial situation is temporary, a quick loan might be the answer you are looking for. This type of loan is generally due to be paid back within 30 days. If you are just starting a new job and won't be paid for a few weeks, or if you know you have income coming in later in the month but need to make a payment now, a quick loan can allow you to disperse funds the way you need to for fast relief. Just be aware that you need to stick to the terms of the loan to avoid late fees and additional finance charges.

When you are in the midst of financial difficulties, making any payments or dealing with creditors can feel overwhelming. It might help to remind yourself that many people have gone this type of situation and pulled themselves out of debt. Keep in mind that the people calling you from the collection agencies might have had money problems in the past too, and that they want to help you settle your debts. Do what you can to work with them in order to regain your financial footing.


5 August 2015