When being bogged down by way of a mountain of unpaid debt, it could oftentimes feel like bankruptcy is the final and only available choice to regain your financial security. But many individuals are reckless in filing bankruptcy, taking it as a simple way out. Bankruptcy is really a serious action, the outcome of that may stay attached with your credit apply for a complete 10 years in some cases, haunting you as you attempt to have the loans that you might want, rent a condo, buy a house, as well as obtain insurance at a reasonable rate.
And since more and more potential employers now check the credit record of their prospective employees, a bankruptcy notation on your credit file can also decrease your chances of having the dream job that you’ve been working so very hard for. Because of this plethora of reasons, smart borrowers are looking at consolidation of their debts via hard money loan in place of the drastic measures of bankruptcy.
What Are Hard Money Loans?
Hard money loans are loans which are made utilizing the funds of private money lender and many borrowers are receiving an easier and more hassle free time securing loans for consolidation of unpaid debt than other more traditional options. Being approved for this kind of loan is easier than traditional loan products because approval is based more upon assets than on credit history.
Private lenders are not held to the strict lending and underwriting practices that govern bank lending, and this permits them the freedom to loan money to a better amount of borrowers, even people that have bad credit.
Advantages of Hard Money Loans
Hard money loans can allow you some rest from your debt even more quickly than the usual conventional loan can. Although every borrower differs, those borrowers who take advantage of these loans can end up free of debt with a couple of years; traditional debt consolidation can take a decade or longer. That is due in large part to the deflated rate of interest that is found in hard money lending, which puts your debt at a far more manageable level and lets you pay more of the total principle that is owed on your debt each month.
Hard money loans are better for your credit than bankruptcy, obviously, but perhaps even better than loan consolidation with a normal lender. Why, you may ask? To put it simply, most of the debt consolidation companies available only worsen the specific situation that borrowers are facing. Hard money loans enable you to build positive payment history by actually paying off the debt you owe faster, without falling behind.
When you take a hard look at bankruptcy, look at a hard money loan. Bankruptcy can leave a stigma on your credit record that takes a big part of your lifetime to overcome. Bankruptcy demonstrates in among the harshest ways possible that you are more than ready to leave from your own debt, and your responsibilities. Hard money loans can offer you freedom over your finances once and for several, while avoiding bankruptcy.
Hard money loan 