First Financial  
First Financial  

First Financial Personal Loans

Escape Credit Card Debt: Debt Settlement or a Personal Loan?

Cutting credit card to get personal loan

Many consumers have received phone calls explaining that they can settle their credit card debt for a fraction of its total. While this is possible, taking the debt settlement route can have negative consequences on your long-term financial health.

Debt settlement works this way:  a company acts as an intermediary, making calls to your credit card company or another creditor for you.

The personal loan, on the other hand, is simply a lump sum of money you win from a bank or alternative lender after filling out an application form and submitting some financial documentation.

But to further guide you in deciding which path to take, here are the risks and rewards of debt settlement versus the personal loan.

Risks of Debt Settlement

Debt settlement comes with the following potential risks.

  1. Credit Damage.

A debt settlement company negotiates with your creditor to demand less money that what you actually owe. Your creditor, in turn reports this event to the credit bureau, explaining in detail that your debt was settled for less than how much was owed. Credit bureaus degrade your credit score.  Further, seeing this history future car, home and bank lenders will be reluctant to do business with you.

  1. Implications on taxes.

The money you escaped paying isn’t the free pass debt settlement companies imply. The IRS will demand a slice of this “discount” in your taxes. You will pay taxes on it as if it is income. Your debt settlement company sends information to the IRS and to you. In fact, if you do choose to use a debt settlement company, make sure to ask up from what the tax implications are.

 

Rewards of Debt Settlement

Debt settlement does help consumers reduce their debt. Also, when you try of applying for a loan when you still have not fixed your debt yet, you are certainly going to have a hard time. As a matter of fact, lenders are highly unlikely to be willing to work with you if this is the case. But when you do eliminate your debt, you will be attracting more lenders to work with you and even open up a lot of other opportunities for your own success.

  1. Save more money.

Giving your lender a lesser amount of the amount owed leaves more money for you to use to buy a car, home or other asset. Make sure you maximize the amount forgiven you will only be successful in this when you have already mastered the labyrinth of debt settlement.

  1. Put an end to the collection.

Aggressive creditors can make your life a nightmare. Even more frightening, when you do not respond, they file a lawsuit which could be served in public and end up garnishing your wages. Debt settlement puts this interference to a stop.

 

Risks of Personal Loan

  1. High interest rates.

Many are surprised that personal loan rates are typically sometimes twice as high or higher than home and auto loan rates. The better your credit score, the lower rate you will get. Still, those with personal loans pay a lot of end their creditors calls.

  1. Penalties for early payoff.

Some lenders charge high penalties if you pay the loan off early. Make sure to read the terms and regulations of the contract or ask your loan officer. First Financial personal loans never have penalties for early pay off.

  1. Complications that are unnecessary.

A personal loan should be simple:  you apply for a personal loan, the company pays for your debt, and in turn, you will be going to pay the company. View additional fees or meeting with bankers with suspicion.

Rewards of Personal Loan

  1. Improved credit score

The thing about having a personal loan is that it can pay off your credit card debt in no time. The credit bureaus also see this move as a commitment to pay the debt rather than escape it by going into debt settlement. This move reveals your habits of paying your debts and impresses lenders.

  1. No risked property.

A personal loan does not require property for collateral. Therefore, if you do default on it, you aren’t at risk for foreclosure or repossession.

A+ Rated First Financial Personal Loans for Borrowers of All Types, Even Bad Credit

When considering personal loans, don’t forget that online lenders have the automation and reduced overhead to offer the best loans and terms. First Financial is the national leader in providing personal loans for borrowers of all types, even bad credit borrowers. Just fill out our simple application form, and get the money in your account in a matter of days. The Better Business Bureau rates First Financial A+ because we make customer service our highest priority.

 

Is Now the Right Time for a Personal Loan?

Making a decision about the economy

Is your job stable enough to justify a personal loan? 

Until 2012, many viewed having a personal loan as risky. Having to pay for money you didn’t have would drive a consumer further into debt, jeopardizing their financial situation.

Today, the economic outlook has changed. Economists predict that 2017 will see a slight rebound.

First: wages are actually growing. According to the Atlanta Federal REserve Board, wages have enjoyed their fastest in crease in the past year. With unemployment at a low 4.6% today, most economists explain that the U.S. is at “full employment.” As workers get harder to come by, wages will rise.

The rise in consumer spending of 3.8% in just the last six months, too, boosts the U.S. Gross Domestic Product which helps the overall economy. This may have been a result of the rise of the employee’s wages over this time also. This is highly comparative to the 3.6 percent of gain for the take-home pay, thus a noticeable drop in the savings rate. The perceptions of the individual also about sending is better than the average and this has come to be stable for the previous months of observation. It is highly likely that they would have their expenditures increasing as directly proportional to the wages that they get to receive in their respective jobs.

Another factor that can be viewed as an advantage is the construction of more houses. The more of them that are built, the lower the prices could go. Houses with lower prices than the usual average price can be a driving force for the individuals to avail, thus setting the economy to be rocketing. The apartments have the most gain for this, though. This is because multifamily starts have an increase of 14 percent over the previous year while the single family has an increase of a mere 1.3 percent.

However, if you do not feel that there is an increase in your wage over the previous months, then you should ask for a raise. The U.S. Census Bureau has already increased the median incomes during the previous year after it has its years of falling or just being stagnant. You can just as your employer to give you a raise. If not, then it are better for you to look for another company that could serve you well as you have served them.

What could this say about the economy of the country? It can be that the business all over the place is booming in such a way that it creates a great many opportunities for the employees to get their own savings and even encourage personal loans.

Unlike a housing loan or a car loan for that matter, a personal loan can be used for the tuition fees of your children, or for the expenses of your travels when you feel like paying another place a visit just for mere relaxation, or anything else that you may want in your life. Further, if you want your personal loan to be secured as you should, you will be required to have a collateral such that it could back your personal loan. Some common cases for this are having a house or a car to comply the said requirement. You can also have your personal loan unsecured, and in this case, you would not need a collateral for your loan.

week1_monday

Does a Better Economy Translate into Favorable Personal Loan Rates?

We certainly think so!

As economic conditions continue to improve, Janet Yellen at the Federal Reserve Bank will increase interest rates. That means rates on all loans will increase, although not too fast and not by too much.

Those considering a personal loan should do it right now while it is still early. Most Americans have been putting off home improvements and car upgrades because of concern over the economy. The above information should give you the confidence that we are in a stable period.

 

 

Trust A+ Rated First Financial to Get You a Personal Loan Fast and at the Best Rates!

When considering personal loans, don’t forget that online lenders have the automation and reduced overhead to offer the best loans and terms. First Financial is the national leader in providing personal loans for borrowers of all types, even bad credit borrowers. Just fill out some forms, upload documents and get the money in your account in a matter of days. The Better Business Bureau rate First Financial A+ because we make customer service our highest priority.

 

 

 

5 Signs It’s Time for a Personal Loan

cash from personal loan

While the prospect of a personal loan can be intimidating, trepidation didn’t stop Donald Trump, the founders of Starbucks or flamboyant Virgin Airlines owner Richard Branson when they needed funds. A short-term loan goes a long way in providing a better quality of life and setting up a flush future.

In our blog post, “When the Personal Loan Works Better than the Credit Card,” we explain that the personal loan can:

• raise a credit score
• save a borrower half in monthly interest charges when compared to credit card rates
• help borrowers plan (because the monthly payment is fixed.)

The personal loan can actually brighten your financial picture. Considered an installment loan rather than revolving credit, when you use it to consolidate credit card debt, banks see it as your dedication to paying it off rather than defaulting or going into bankruptcy in order to escape it. Experian and TransUnion often raise your credit score within a month or so. See? The personal loan isn’t so bad!

While you will be in debt with a personal loan, the regular payments (often sent automatically from your account through bill pay), help you budget better for the month. Knowing a set amount will come out of your bank account keeps your urge to splurge under control.

Now that you know the personal loan is a common way people pay for purchases and/or emergency expenses, read the following most common scenarios where people use personal loans.

1. You are paying credit card debt at the average rate of 15% or more (23%? 29%) when you can most likely get an unsecured personal loan for 7 to 10%.
2. Collections agencies are calling you about medical bills. NerdWallet Health’s survey found that 56 million Americans have trouble paying their medical bills. More frightening, 35 million American adults get collections agencies calls for them bills and they cause 17 million Americans to receive a lower credit rating.
3. Moving expenses become overwhelming. U.S. News found the average cost of a move within a state is $1,170, and between states, $5,630. These expenses are most often necessary for family members to earn a living. When a company doesn’t foot the bill, they land on individuals. Putting these expenses on credit cards just sets you up for high interest expenses. The personal loan only calculates interest on the principal amount, not the principal plus the interest the way credit cares do.
4. Your car or computer isn’t running. Unless you live in a city like New York or San Francisco that has reliable public transportation, you’re going to need a car. Even GoCars and ZipCars prices add up, particularly if used regularly. Most important, however, a car adds to your quality of life.
5. Your home equity isn’t sufficient for critical home repair expenses. Failing to qualify for a second mortgage doesn’t mean you have to go without a working water heater, air conditioner or mold remediation. All of these things are critical for your family’s health and well-being. Home prices have remained steady for several years now and chances are your home value will go up if you stay in it long enough.

It’s in these five circumstances that most Americans seek out personal loans.

A+ Rated First Financial’s Personal Loans: Manage from Home and On-the-Go!

First Financial has the most competitive rates for high-credit-score borrowers. We even welcome those with fair, poor and bad credit because they make up 56% of the current American population. Use your laptop or tablet to make payments, review statements, and update account information. You can even check your rate without impacting your credit score!

Apply now for a personal loan with First Financial, A+ rated by the Better Business Bureau!


First Financial

First Financial ® Corporate Headquarters 2850 Womble Road Suite 100-604 San Diego, CA 92106

Client Service Center: Main: 1-800-315-7791 Fax: 1-800-215-0217 (Monday–Friday 5:00am–6:00pm Pacific or 8:00am–9:00pm Eastern)

Merchant Services / High Risk Merchant Accounts: 1-800-950-0212 Fax: 1-800-215-0217

 

First Financial® is a Federally Registered Trademark

©1994-2017 First Financial®, All Rights Reserved. All other products and company names are trademarks of their respective companies.