A Renter in Debt? Take Out a Bad Credit Personal Loan

On average, homeowner households earn 95% more than renting households per year. With 26% of a rental households disposable income being spent on renting, in comparison to 15% of homeowners on their houses (not including maintenance), it is unsurprising that people who rent find it harder to manage and turn to bad credit personal loans for help.

It's easy to fall into the rent trap. As monthly rents take over ¼ of their income, debts for renters can easily pile up. It is very difficult to make any savings towards a deposit for a home and very easy to get bad credit if you skip payments on things like credit cards to try and make ends meet. Fortunately, renters with bad credit can still apply for a bad credit personal loan.

A bad credit personal loan is an unsecured loan. This means that unlike a home equity loan you do not have to pledge a valuable item such as a home or a car to guarantee repayment. If you rent this makes perfect sense as you do not have a home to pledge anyway!

A really useful thing to know is that a bad credit personal loan can be used for just about everything including:

? Buying Christmas presents

? Furnishing a rented home

? Paying off credit card bills

? A new car

Most companies that offer bad credit personal loans are not interested in what the money will be used for, they are merely interested in whether the person taking out the loan will be able to make the repayments or not. If you have bad credit then you will need to seek appropriate lenders who offer a personal loan for people with bad credit, but there are an abundance of specialist lenders available.

The main advantage to using such a loan is that unlike a credit card, the credit is non-revolving. This means that the interest rate and the term of the bad credit personal loan are fixed at the outset. The monthly repayments are always the same and this makes it far easier to allow for in a monthly budget.

As these loans are unsecured and for bad creditors, they do carry a higher interest rate than a home equity loan, but if you do not have a home then this narrows your choices substantially.

Peter Siu is a successful freelance writer providing valuable advice for consumers when applying online for credit cards, student credit cards as well as other personal & mortgage loans. You can visit his sites at http://www.uscreditcenter.net http://www.ukcreditcentre.com and - His numerous articles offer moneysaving tips on a number of topics.

Latest News


Washington Post

US Rethinks Roles of Fannie, Freddie
Wall Street Journal - 11 hours ago
The main focus is on the government-backed buyers of home loans: Fannie Mae, created in 1938, and its younger cousin, Freddie Mac, formed in 1970. ...
Government plans new credit, mortgage programs O Jornal
Lenders Become Proactive New York Times
Mortgage relief gets stuck Cape Cod Times
Las Vegas Sun - TheStreet.com
all 2,140 news articles

The Star-Ledger - NJ.com

General Growth gets 2-week reprieve on loans
Chicago Tribune, United States - 2 hours ago
The real estate investment trust said it and the syndicate of lenders "are continuing their discussions" on a longer-term extension to the loan, ...
GGP Gains Two-Week Extension on $900M Loans GlobeSt. com
General Growth gets 2-week extension on $900 million in loans Chicago Daily Herald
General Growth Properties gets loan reprieve The Associated Press
Reuters - RTT News
all 121 news articles

Wall Street Journal Blogs

Restoring the flow of credit to entrepreneurs
Los Angeles Times, CA - 10 hours ago
A Treasury Department program aims to make it easier for lenders to find buyers for the loans they make. By Cyndia Zwahlen The credit crunch looks like an ...
Forbes: Let the Small Business Administration work Austin American-Statesman
SBA Applauds Treasury Action to Bolster Secondary Market for Small ... MarketWatch
Feds hope to unfreeze SBA, consumer lending Bizjournals.com
Wisconsin State Journal - FOXBusiness
all 123 news articles

findingDulcinea

Can the Federal Government Save the Student Loan Market?
findingDulcinea, New York - 27 minutes ago
by Anne Szustek The Federal Reserve recently announced a $200 billion lending facility for private student loan lenders. Is this the best way to make higher ...
The Fed boosted emergency loans to banks and firms The Associated Press
Fed Commercial Paper Holdings Rise to $295.1 Billion (Update2) Bloomberg
"Oops, We Meant $7 TRILLION!" What Hank and Ben Are Up to and How ... OpEdNews
The Cutting Edge - Examiner.com
all 455 news articles

New York Times

Turning Around the Idea of Student Loans
New York Times, United States - 11 hours ago
“This is a five-year loan, and that helps ensure a certain amount of longevity for this project.” Justin said he first became interested in poverty issues ...

Student debt levels portend rising loan default rates
Indianapolis Star, United States - 8 hours ago
They were aiming to win big so they could pay off their student loans. "If you don't try, you can't win," said Brown, a 26-year-old marketing consultant. ...

Hedge Fund Manager Hendry Bets on Deflation With UK War Loans
Bloomberg - 3 hours ago
The “Jolly Long Bond,” as Hendry calls the war loan, will be the most reactive to deflation because not having a maturity means it has long duration, ...

Loss of college loans lender may have little effect
Spartanburg Herald Journal (subscription), SC - 3 hours ago
The financial aid director for Spartanburg Community College stressed that these types of supplemental loans are separate from the Stafford Federal Student ...

Detroit's Big 3 Will Try Again To Get Federal Loans
NPR - 4 hours ago
They're going to try, again, to convince Congress to give them federal loans. They say they need the money to avoid an industry collapse. ...

Boston Globe

Problem-solver
Boston Globe, United States - 8 hours ago
Bair's plan to systematically modify 2.2 million loans for defaulting borrowers has drawn widespread support - except from the Bush White House. ...
Avoiding your own mortgage collapse The News Journal
Efforts are under way to head off foreclosure Philadelphia Inquirer
all 4 news articles

Resources