Christy Bieber The Motley Fool Published 6:00 AM EDT May 9, 2019 Personal loans have many significant advantages over other types of loans, such as credit cards. The interest rate on a personal loan is typically well below the standard APR on a credit card. And personal loans come with fixed repayment terms and predictable repayment schedules, so there’s no risk of getting mired in debt forever as there is with a credit card. But just because personal loans can be an affordable way to borrow doesn’t mean it’s always a smart idea to take out a personal loan. In these five situations, borrowing from a personal loan lender can be a big mistake. 1. When you can't get a loan at a reasonable rate There are all sorts of personal loan lenders that cater to borrowers with different credit histories and different borrowing needs. Unfortunately, some of those personal loan lenders are unscrupulous and charge very high interest rates and high origination fees. … [Read more...] about Times when it’s not a smart idea to take out a personal loan.
Best rated student loan consolidation
Americans are slipping ever deeper into hock. To cope, many people turn to debt consolidation loans, cash-out mortgage refinancing and retirement plan loans that promise relief, but could leave them worse off. Paying off high-rate debt, such as credit cards, with lower-rate loans may seem like a no-brainer. Unfortunately, many of these loans have hidden costs and drawbacks. And consolidation by itself can’t fix the problems that led to the debt in the first place. In fact, such loans can make matters worse if borrowers feel freed up to spend more. “Consolidating debt seems to create the psychological effect of making you feel like you’ve zeroed it out,” says Moira Somers, financial psychologist and author of “Advice That Sticks.” “Then [borrowers] just start spending up again, until there is no more wiggle room.” Debt levels are hitting new highs Statistics show U.S. households are taking on record levels of debt. Overall household debt, … [Read more...] about Weston: How debt ‘solutions’ could dig you in deeper
Susan Tompor Detroit Free Press Published 3:23 PM EDT Apr 24, 2019 Caution: If you're someone who grabs money management tips after a quick read of a headline or two on Twitter, take note. Don't bank on getting a big break yet on your college debt. "College students who are graduating this year should not count on having their student loans forgiven," said Mark Kantrowitz, publisher and vice president of research for Savingforcollege.com. "They should not put their loans into a deferment or forbearance in the hope that the student loans will soon be forgiven. All that will do is increase the amount they owe." College debt has turned into a political football early during the 2020 presidential race. And we're going to hear a lot more on how to save young — and old — borrowers. U.S. Sen. Elizabeth Warren, D-Mass., unveiled a plan Monday that called for among other things: Cancelling up to $50,000 in student loan debt for every person … [Read more...] about Elizabeth Warren’s plan for student loan forgiveness: Don’t bank on it