Manage a Financial Crisis With the Right Loan Product

25% of African Americans have less than $5 dollars should they liquidate all their assets. This figure is alarming considering the high cost of living in the U.S. and if disaster strikes, there are very few options to turn to when it comes to a financial emergency. Those who are concerned about the Biblical principles of getting into debt will need to do a fair amount of research before deciding on the right product. Debt is a heavy yoke for the borrower and should only be a last resort. 

Choose The Option That Best Matches The Need

There are a number of finance options out there that cover a multitude of needs and many debt issues arise due to the incorrect use of finance. Before applying for finance, it’s important to determine whether it’s a very short-term need or a very long term need. For instance, replacing a car battery is a one-off expense that can be done over the short term, while an extended hospital stay without cover is a longer-term option. Credit cards and overdraft facilities are better suited to the short term, while personal loans and term loans are better for the longer term options.

Request A Few Quotes To Compare The Offers

It’s not every day that a major bank comes along and dedicates $60 million to increase African American homeownership. Those in the market for finance need to weigh up their options, by deciding which financial product to go with and comparing relevant quotes from various lending institutions is a must. This means taking into account each item that adds to the installment such as interest charges and service fees. It also means taking into account the term the institution is offering and the total repayment of the loan over the period. Some institutions might have a better interest rate, but make up for it in high service fees.

Use The Envelope System To Stay On Top Of Payments

One of the best ways to manage the repayments on a loan, is to ensure that the budget accommodates this new loan through the envelope system. Once the paycheck rolls in, take the cash and stick it in an account until it’s time to make the payment. This way, the funds won’t be used for other items and staying on top of the repayment becomes a little easier. It’s also a good idea to monitor statements to ensure there aren’t any unnecessary charges levied against the account, for instance, club membership fees on clothing accounts and subscription services that never get used.

Those unforeseen moments when savings aren’t enough to tide a financial situation over may call for a loan, and it’s important to choose the right one when the time comes.