Being in debt can be a difficult position for even the most well-intentioned of us: sometimes, unexpected events occur that change the view of our financial landscape in an instant.
Taking on debt is a major psychological effector. All of a sudden, your brain would do anything rather than sink itself further into further indebtedness. This can prevent you from taking certain actions necessary to vault yourself out of debt or delinquency of payment – critical actions, ones that will lessen the exponentially negative effects of retaining debt over lengthier time periods.
As such, the idea of taking out a personal loan Â over a short period in order to address lingering repayments, sudden up-front bills or existing debts seems like a highly counterintuitive one. This really is the biggest conundrum: facing down debt, why would you take on a personalÂ loan? Â However, the time factor I previously mentioned is of great importance: a well-designed personal loan solution will generally help you consolidate and repay your other outstanding debts where possible in a short amount of time, getting you back on track financially and allowing you to build the savings you need.
This is where alternative lenders shine. Unlike major (bank) lenders, we take your goals and plans for future financial stability into account – rather than just your credit score. And unlike payday loans or other products designed around a very short term, our goal is to reduce the impact of compounding fees and repayment pressures over time.
Personal loans have long been regarded by some as tools to facilitate discretionary purchasing, often in a relatively unsafe or unstable manner. It’s time to reconsider their effectiveness as motivators and platforms for personal financial reorganization.