Many homeowners have been struggling with their debt problems in which seem impossible to be eliminated because they would rather spend their money for other uses than using it to pay off their debt. As a matter of fact, it's not that they are not aware of the consequences of racking up too much unpaid debt – it is because that they are unable to accumulate enough financial funds to wipe out their outstanding debt. As applying for a personal loan from a traditional bank could be a quick fix of your debt problems but it's indeed a risky move as most traditional banks would normally grant loans to their applicants if they use their houses as collateral.
You may have heard of many homeowners lose their homes to foreclosure – therefore, it's also possible that a homeowner loses his home because of some missed monthly personal loan repayments. The main concern for financially troubled homeowners is this – Is it possible to find a financial solution that can solve your current debt issues without risking your house? Here are some tips to follow:
1. Seek a BBB recognized non-bank lender – As traditional banks do not accept loan applications without any collateral, it's time to move on to seek appropriate financial solution from non-bank lenders. These lenders normally listed their services via Better Business Bureau's (BBB) business directory. Avoid those lenders that claimed that they are BBB accredited but their services are not listed in business directory. They could be scam artists that prey on vulnerable homeowners.
2. Apply for the right loan package – If you do not want to use your home as collateral for your loan application, then you have to apply for a bad credit unsecured personal loan package. Comparatively, this cost of this particular loan is much expensive than other secured loans as the non-bank lender has to bear the risk of having applicants who could not repay their loans as agreed.
3. Shop for the best possible deal – You need to shop around different BBB accredited non-bank lenders for better loan deals. Choose the right loan deal based on its total loan amount, interest rate applied and flexible monthly loan repayment plan. It's not worth to apply for an unsecured personal loan with unreasonable interest rate although it has low monthly repayment plan.
4. It's easier to obtain a small amount unsecured personal loan if you have a bad credit history – It's easier to obtain smaller loan amount – for instance, less than $ 10,000; especially if you have a low credit score as well as low disposable personal income (DPI). If you need to apply for a larger loan amount, apply for a unsecured co-signer loan which it requires a guarantor who has a good credit score and high DPI.
In conclusion, it is possible that you can apply for a personal loan without using your house as collateral, in order to resolve your financial problems. Be aware of its risks and always stay persistent in paying off your loan promptly.