As credit card companies increase interest rates and fees, many credit card consumers are looking for alternative sources of credit. Even personal credits are given a second look due to their lower interest rates. But what is a personal advance? A personal loan is an “unsecured” credit line which is similar to “secured” lends in that there is a fixed amount of credit available and a finite time period to rereinburse the credit. For example, you might borrower $15,000 to remodel your home using a personal finance. That $15,000 is only available once and must be repaid over a set period of time which is determined before you borrow the money. On the other hand, credit cards are revolving credit lines. With a revolving line of credit the amount of the loan is available “indefinitely” as long as the card is paid in a timely matter and the account remains open. With a revolving line of credit the amount of the advance is available “indefinitely” as long as the card is paid in a timely matter and the account remains open.
One of the biggest benefits of personal loans is that borrowers are unable to get trapped into a minimum shell outment cycle where they compensate just the minimum while continuing to use the card. Many credit card borrowers who are trapped in the minimum disbursement cycle end up filing bankruptcy because they can no longer reinburse their arrearss. When borrower receives a finances he/she must agree to regive the mortgage by a set date and those specific terms of regivement (amount, due date etc) are predetermined. Unfortunately for borrowers who are experiencing massive credit card balance, personal credits may not be a n option because they require borrowers to have good credit. However, debtors who have emerged from bankruptcy may be able to secure a advance a few years later if they take the proper steps to improve their credit rating.
Allmand & Lee arebankruptcy lawyers in Dallas, TX who specialize in consumer bankruptcy and offer bankruptcy services that help good people through one of the toughest times in their life. For more information please visit us athttp://www.allmandandlee.com/