Home » Home and Family

There Are Good and Bad Lenders Can You Tell

Aug 13, 2008
With the credit crisis putting many lenders into a veritable shutdown mode, being ever more wary of awarding new loans to anyone with even a smidgen of past personal strife, it's become increasingly difficult for many people to now get the loans that in many cases they need to survive, largely due to their past reliance on loans. Many institutions have popped up to handle this massive downtrodden market, in the form of secured loans companies and payday loan companies. These companies charge massive interest rates because they know the clients who will be in need of their services will not have any other options. This may not be the case, and we'll look into these companies further and show how you can stay out of their clutches.

These high interest rate lenders prey on your insecurities and the frailty of your situation. They want you to view them as the shining white knight here to save you in your darkest hour when no one else will, and that you're lucky they're giving you the time of day. The truth of course is the complete opposite. They are anything but a savior, charging rates that all but guarantee to continue your spiral downward, even on small loans. They want you to feel like you're lucky they'll deal with you, which is nonsense.

These companies will only give you a loan if you give them a secured deposit against the loan (in other words you aren't even getting a loan, you're paying sky-high interest on your own bloody money) or a post-dated check so they can remove money from your account the second it hits on your next payday. As such these companies take virtually no risk whatsoever in dealing with you.

For the risk they take on they should be supplying you with the lowest interest rates on the market, but of course they don't, because they don't have to. You need them. Of course they'll deal with you, who wouldn't under the circumstances? These companies are no saviors; they're leeches, sucking the life out of their nearly dead hosts.

The thing to learn is that you don't need them, and these companies will not help you. Taking out a $100 payday loan to buy food is just going to leave you $150 short for food next month. You have to break the cycle, or ideally, never get into it with them. If that means selling something to buy the food instead, so be it. If it means eating nothing but bread and peanut butter for a month, so be it. You have to determine what's important to you. A lifetime of debt, stress and struggles, or a short term sacrifice for the greater good?

With effort you can get out of debt and turn things around it may take the assistance of a debt consolidation loan. If you have to sell off some of your possessions or make large cuts to your budget to do so, you shouldn't even hesitate. Not doing so is simply costing you 50% more of everything down the line. Selling a $1,000 stereo for $200 may seem like a massive loss, but if it saves you from going into an endless cycle of bad loans, it could save you thousands of dollars in just a few years.

Get your debt down, work on improving your credit score in every way possible, and leave these bad loans and bad lenders in No Man's Land where they belong.
About the Author
Unmask more on the topic of bad credit debt consolidation loans today!
Rating:
Please Rate:
(Average: Not rated)
Views: 136
Print Email Report Share
Article Categories
    • Artists
    • Gambling
    • Humanities
    • Humor
    • Movies
    • Music
    • Photography
    • Tattoos
    • Television
    • Classic Cars
    • Motorcycles
    • Recreational Vehicles
    • SUVs
    • Trucks
    • Vans
    • Branding
    • Business Opportunities
    • Careers and Jobs
    • Corporate
    • Customer Service
    • Direct Mail
    • Entrepreneurship
    • Ethics
    • Financing
    • Franchising
    • Home-Based Business
    • Human Resources
    • Import and Export
    • Leadership
    • Management
    • Market Research
    • Marketing and Advertising
    • Negotiation
    • Network Marketing
    • Networking
    • Organizational
    • Presentation
    • Project Management
    • Public Relations
    • Small Business
    • Strategic Planning
    • Team Building
    • Telemarketing
    • Training
    • Data Recovery
    • Databases
    • Games
    • Hardware
    • Networks
    • Operating Systems
    • Programming
    • Security
    • Software
    • Spyware and Viruses
    • Ask an Expert
    • College and University
    • Home Schooling
    • K-12
    • Languages
    • Online Education
    • Psychology
    • Accounting
    • Credit
    • Currency Trading
    • Debt Consolidation
    • Insurance
    • Investing
    • Leasing
    • Loans
    • Mortgage
    • Mutual Funds
    • Personal Finance
    • Stock Market
    • Structured Settlements
    • Taxes
    • Wealth Building
    • Coffee
    • Cooking
    • Gourmet
    • Recipes
    • Wine and Spirits
    • Acne
    • Aerobics
    • Alternative Medicine
    • Beauty
    • Cancer
    • Cosmetics
    • Depression
    • Diabetes
    • Diseases and Conditions
    • Fitness Equipment
    • Fitness
    • Hair Loss
    • Heart Disease
    • Medicine
    • Men's Health
    • Muscle Building
    • Nutrition
    • Skin Care
    • Supplements and Vitamins
    • Weight Loss
    • Women's Health
    • Yoga
    • Feng Shui
    • Gardening
    • Home Appliances
    • Home Security
    • Interior Design
    • Landscaping
    • Affiliate Programs
    • Article Marketing
    • Auctions
    • Audio
    • Banner Advertising
    • Blogging
    • Broadband
    • Domain Names
    • E-Books
    • E-Commerce
    • Email Marketing
    • Ezines and Newsletters
    • Forums
    • Internet Marketing
    • Link Popularity
    • Pay-Per-Click
    • Podcasting
    • RSS
    • Search Engine Marketing
    • Search Engine Optimization
    • Security
    • Social Media
    • Spam
    • Video
    • Viral Marketing
    • Web Design
    • Web Development
    • Web Hosting
    • Copyright
    • Cyber Law
    • Intellectual Property
    • National, State, Local
    • Patents
    • Regulatory Compliance
    • Trademarks
    • Buying
    • Selling
    • Baseball
    • Basketball
    • Boating
    • Cycling
    • Extreme Sports
    • Fishing
    • Football
    • Golf
    • Hockey
    • Hunting
    • Martial Arts
    • Running
    • Scuba Diving
    • Soccer
    • Swimming
    • Tennis
    • Dating
    • Divorce
    • Marriage
    • Weddings
    • Astrology
    • Buddhism
    • Christianity
    • Faith
    • Hinduism
    • Islam
    • Judaism
    • Meditation
    • Metaphysical
    • New Age
    • Cable and Satellite TV
    • Cell Phones
    • Communication
    • Gadgets and Gizmos
    • GPS
    • Satellite Radio
    • Video Conferencing
    • VoIP
    • Addictions
    • Coaching
    • Goal Setting
    • Motivational
    • Stress Management
    • Time Management
    • Clothing
    • Electronics
    • Fashion
    • Gifts
    • Jewelry
    • Causes and Organizations
    • Environment
    • History
    • Holidays
    • Men's Issues
    • Nature
    • Philosophy
    • Politics
    • Women's Issues
    • World Affairs
    • Air Travel
    • Camping
    • Cruises
    • Destinations
    • Outdoors
    • Article Writing
    • Book Reviews
    • Copywriting
    • Fiction
    • Non-Fiction
    • Poetry
    • Quotes
    • Screenplay
    • Tools and Resources