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Finance 101: Different Types of Loans to Meet Your Needs

Finances can only go far with unwise budgeting and improper financial planning: this is the hard truth that people need to face. But even with personal restrictions not to spend cash or just the decision to live by a strict budget, there will always come a time for immediate and necessary spending.

Say an urgent hospital bill has left your pockets drained or college tuition forced you to crack that piggy bank open. The following question will always be: what must be done to make your ends meet?

The usual resort, of course, is to apply for fast cash loans. The problem, however, is the lack of knowledge about them and the payment conditions attached. To save one from all the complexity, a personal loan is always within reach.

Different circumstances call for varying types of loans, and discussed below are loans you may find suitable to apply for.

Secured Personal Loans

As the term suggests, these loans are secured by collateral. Agreements made under this type of loan authorize lenders to seize property or other assets should there be a settlement failure. The good thing about secured personal loans is their relatively low interest rates for borrowers and lower risks for lenders.

Unsecured Personal Loans

Applying for this type of loan saves you from putting assets on the line. You can sleep just fine knowing your car and home, for example, are still yours and not temporarily filed as security payments. However, this carries a more considerable risk for lenders. As a result, they compensate by charging a higher annual percentage rate, usually between 6 to 30 percent.

Fixed-rate Loans

If you happen to follow a strict financial plan, then fixed-rate loans will surely alleviate some of your money-related issues. Their fixed monthly rate guarantees no sudden increase will occur, giving you just the comfort of not having to change and adjust your budget.

Variable-rate Loans

Variable-rate loans are those with interest rates that rely heavily on banks' benchmark rates. With this, your monthly settlement, together with interest costs, can increase or decrease based on your bank's rate fluctuation. While this may seem unstable and risky, their APRs are much lower than those with fixed monthly rates, which makes sense if you plan to settle your debts within a shorter term.

Debt Consolidation Loans

Combining all of your debts into one single loan is tremendously helpful for those who can no longer manage their debt. It usually involves low interest rates, making it a good resort for anyone who does not want the hassle of multiple payments month in and month out. You just need to take care of one settlement to cover all your debt.

Co-Sign Loans

Worry not, as low credit scores don't automatically lead to a rejection of an application. You can ask for someone to act as your co-signer, who will then be responsible for settling your payments should you fail to do it yourself. One practical tip that will get you approved and lower your APR is having a co-signer with excellent credit.


Regular and emergency expenses surely drag people's wallets from one month to another until nothing is left. With constraints faced by people with mounting payments and limited spending power, applying for loans can ease the way.

Let your financial struggles be a thing of the past with the help of When Ends Don’t Meet. Apply for personal loans in Pelham, AL, to ferry you through rough waters. Reach out to us and get your loan now!

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