Are you worried about how you are going to survive financially? Well, you’re not alone. The economy is in bad shape. Incomes have dropped by 10% from what they were last year. With the rising cost of utilities, food, gas and other necessary living expenses, many people are running out of cash long before their next paycheck.
The economic crisis has not bottomed out and is not expected to until sometime in 2010. Financial advisers are suggesting people tighten their belts a little tighter by adopting a budget and sticking to it. Cut out all unnecessary expenses, pay off credit cards and keep one or two credit cards with the lowest rate and start a savings account. It’s easy to say but hard to do.
Paying off huge credit cards balances and keeping the mortgage on the house current is a struggle for most Americans today. But when you’ve done all you can do and bank loans have all but dried up, here are a few sources of cash you might try:
Virgin Money has two types of loan programs. Social Lending which formalizes loans between family and friends and Traditional Lending, you borrow from Virgin Money.
Let’s say you need extra money to pay off credit cards, to fix the car or for a down payment on a new home and you think mom or dad might help. Relatives or friends would probably feel more comfortable loaning you money if the loan was formalized and handled by a third party. Virgin Money negotiates the terms and repayment schedule. The interest rates can be lower and the terms more flexible than a traditional bank.
Maybe you are trying to sell your home and can’t find any bank approved buyers. Virgin Money offers FHA, fixed and adjustable rate mortgages. Get the information you need from Virgin Money.
Reader’s Digest lists lendingclub.com as a possible source of cash. They offer low rates and fixed monthly payments on personal loans, auto, debt consolidation, student and home improvement. If your credit is good, you can get a lower interest rate than you would receive from more traditional sources.
Lending Club has been written up by CBS News, The Wall Street Journal, The New York Times, ABC News and quite a few more. Read the news coverage and see what you think.
Since traditional loans are harder to get and social lending clubs have become a viable source of loans, the Securities and Exchange Commission is busy trying to form regulations and approve each club. Two clubs awaiting approval are Loanio.com and Prosper.com. They have suspended operations and hope to reopen soon. At the rate the economy is crashing, let’s hope it’s soon!
Loanio.com and prosper.com are for riskier loans. They facilitate loans between borrowers and lenders. Be sure to gather as much information as you can and understand the risks and your rights before you borrow or lend.
Private Student Loans
The demand for student loans has increased while the availability of loans has decreased. GreenNote is a social lending club for student loans and they provide fixed rates and no co-signer or citizenship is needed. Relatives, friends or anyone who wants to invest in you, can fund your education. GreenNote formalizes the loan and handles all the details, including repayment. Read news and press releases for GreenNote.
Be careful, these loans are real and need to be paid back. Missed or late payments will be reported to credit bureaus.