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It Is Never Too Late to Solve Your Money Problems

After I entered the job force at 18, I had money problems for quite a number of years. I earned a decent income, but I lived paycheck to paycheck and just felt like I would never get ahead financially. One day, determined to get ahead, I decided to record every purchase I made for a month to find out just where my money was going. I learned a hard lesson that day that small purchases here and there throughout the month really add up. I committed to a much smaller budget and began stashing savings away. Then, I researched the world of investing and made a few strategic ones with some of my savings. I am now doing much better financially, and I want to help others who need it, so I am starting a blog. Come back often for money management tips and tricks explained simply!

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Four Reasons A Signature Loan Is Better Than A Credit Card

Finance & Money Blog

Paying for certain purchases requires you to borrow money so that you can pay off the purchase over time. This way, you are not spending a ton of money all at once. However, not all methods of borrowing money are the same. For example, you could apply for a credit card, which would be different than applying for a loan. A signature loan is also very different from all other options because it allows you to apply for a loan without any collateral. Here are four reasons you should consider a signature loan over applying for a new credit card:

  1. It's Going to Take a Longer Period of Time to Pay off the Purchase: If you are making a purchase that is going to take you several months or a year to pay off, then a signature loan is best because the interest rates aren't as high as they are with a credit card. The only time you don't pay interest with a credit card is if you pay it off in full every month. However, if you are leaving debt on there, chances are you are going to pay a lot of interest on that debt. 
  2. You are Looking for a Fixed Payment: If you are looking for a fixed payment, then a signature loan is also a great option because many lenders offer a fixed payments with a fixed interest. This way you are spending the same amount every month, which is ideal if you are on a budget and don't want to spend more than what you agreed to originally when making your purchase. 
  3. You Only Need a Certain Amount: If you are looking to make a one-time purchase and you only need a certain amount on a loan, then a signature loan will work best because you can apply for the amount you need without the amount going up. For example, credit cards often allow the user to have an increase in the credit line. This isn't always ideal though if you don't want to hold onto a credit card for a long period of time, but instead just want to pay off the debt you owe and be done with it. 
  4. ​You Are Looking to Pay in Cash: If you want to make a certain purchase with cash, then a signature loan is great because you can have the money directly deposited into your account and then withdraw it if needed in order to pay in cash. Then you can have the funds automatically debited from your account every month in order to pay off the loan.

When you know these four reasons a signature loan may work best for you, then you can see why it's best to apply only for this type of loan over others in certain situations. Speak with a finance company, such as Las Vegas Finance, to learn more about applying for a signature loan.

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1 June 2017