Loan & Credit

Jan 30 2017

10K Personal Loan With Bad Credit (2K, 3K, 5K) #guaranteed #personal #loans

#loan for bad credit
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OHIO LOAN FIND

10K Personal Loan With Bad Credit (2K,3K,5K)

Many borrowers need a personal loan for 10K (ten thousand dollars), but the reasons why they need the loan is completely different depending on each individual situation.

Often if somebody has borrowed 2K, 3K, or 5K in the past they end up owing a lump sum of 10K or more.

Usually these loans taken prior have high interest rates attached to them is the borrower(s) had bad credit when they applied for the loan. This is not a good position to be in and by borrowing 10K they think they can have one payment per month to make instead of various other payments.

In other words, these borrowers are in essence getting a debt consolidation loan on their own accord instead of paying for an attorney or trustee to set up a payment schedule based on just a fraction of what is owing. These borrowers hope they can somehow get out from underneath their debt and not go through the shame involved when setting up a settlement plan with their creditors.

Most of these creditors are credit card companies, department stores, and their family banking institutions via lines of credit and overdraft accounts. Unfortunately many times the 10K they are trying to borrow is not even enough to pay off all of their loans.

Of course there are people who need 10K for other purposes, such as the purchase of a car, some home renovations, or a family vacation. Just did this is the case then you could be increasing your complete debt load even more putting yourself in a even more precarious financial position going forward, and it may be something you ll regret later. You may end up being in a position where you can t service the debt on everything you have borrowed and you are just prolonging the pain until you do have to get a structured settlement plan set up with your creditors through trustee.

10K Personal Loan at 11% for 3 Years

For a ten thousand dollar loans we will run the numbers so you can see home much it is going to cost you in the long run, and what it does for you in the short run. For this 10K loan we are going to use an Interest rate of 11% for the sake of argument and we ll use a 3 year pay-back schedule with payments being at the beginning of each month. Below are the results.

Amount borrowed = 10K dollars

Interest rate = 11%

Length of loan = 3 years

Payment periods = monthly

10K Dollar Loan Results for 3 Year

Total Amount to be payed: 11,695.52

Total amount of interest 1,695.52

You can see very clearly that you are paying a little bit over $500 a year in total interest payment charges. Your payments are reasonable at $320. This kind of loan is fairly common throughout the United States. Next we will look at a 10K dollar loan over 5 years at 7.5%.

10K Personal Loan at 7.5% for 5 Years

If you have a pretty good FICO score with the credit bureaus you can perhaps be approved for a loan at an interest rate of 7.5%. This is a considerably lower APR and will save you allot of money over time. For this loan you will be paying the bank back every 14 days (what they call biweekly) and you will be paying back the loan over a five year period. Of course this is also a loan for 10,000 dollars. See below. Take special note of how low the biweekly payment is here only 91 dollars paid every two weeks!

Amount borrowed = 10K dollars

Interest rate = 7.5%

Length of loan = 5 years

Payment periods = biweekly

10K Dollar Loan Results for 5 Years

Total Amount to be payed: 11889.41

Total amount of interest 1889.41

10K Personal Loan at 23% for 7 Years

If you have a bad credit rating, with a FICO score of 550 (as far as the credit bureaus say) then your interest rate is going to be much higher. The banks and private lenders will see more risk in lending to you and as a result they try to protect their interests by charging you, along with thousands of other borrowers, a very high interest rate.

This way if a few borrowers default on their payment(s) they will still be ahead in the long run.

Now watch how expensive this loan is over the full during of the 7 year term. See the most important part here is that the principal of the loan is 10K, and the interest on the note is over 8K. This is a very expensive form on lending in which the borrower is paying dearly at the cost of  borrowing point. The fees on a loan like this could be very high as well, so you will have to keep that in mind too. Often the lender in this case will be a private lender.

Amount borrowed = 10K dollar

Interest rate = 23%

Length of loan = 7 years

Payment periods = monthly

10K Dollar Loan Results for 7 Years

Total Amount to be payed: 18144.67

Total amount of interest 8144.67

Written by CREDIT


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