Personal Loans - 3 Tips For Responsible Borrowing

Personal loans -- unlike student loans, mortgages and auto loans -- do not have a specific use tied to them. Personal loans are to be used at your discretion for whatever large financial expense you may need to cover. This includes expenses such as major car or home repairs, medical bills, or even a wedding.

Personal loans are normally unsecured and fairly easy to apply for. The life span of the loan is relative to the amount borrowed and depends on how small or large the loan is.

Personal loans may seem similar to payday loans in that they both provide a means to access a large amount of cash quickly, however, they are different when it comes to repayment. Personal loans normally have fixed payments set out for the life of the loan, whereas a payday loan requires borrowers to repay the loan in one lump sum by their next pay date.

If you're thinking of taking out a personal loan, follow these tips to become a more responsible borrower.

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Shop around.

When you're in a bind, you might be inclined to take the first offer you're presented with. However, when you're in the market for a loan, the saying "haste makes waste" holds true. Personal loans tend to come with very different terms and conditions depending on the company.

Today, with loads of personal loans being offered online, it’s especially important to take the time to thoroughly compare the loans available. Make note of the eligibility requirements, the minimum and maximum available to borrow, as well as the APR to evaluate which loan would suit you best.

Always read your loan agreement.

Your loan agreement will explicitly state all the details regarding your loan. Some important details to note from your loan agreement are the loan amount, the payment amount due, the due date and the number of payments to pay off the loan.

You should also make note of any options to repay the loan early and if there are any penalties associated with early repayment. Repaying the loan early can save you a lot on the total interest owed.

Don't take out a loan for a higher amount than you need.

The easiest way to get caught in a debt trap is to borrow more than you need. The larger your loan, the more you'll need to repay. The best way to get your finances in order is to focus on spending within your means so you don’t end up owing more than you can afford to pay off.

Personal loans are a great way to get out of debt when you use them responsibly.

Blue Trust Loans provides personal loans of up to $1,250 in your account as soon as the next business day. Apply now for your personal loan.

Hummingbird Funds, LLC is a sovereign enterprise, an economic development arm and instrumentality of, and wholly-owned and controlled by, the Lac Courte Oreilles Band of Lake Superior Chippewa Indians (the “Tribe”), a federally-recognized sovereign American Indian Tribe. This means that the Hummingbird Funds’ installment loan products are provided by a sovereign government and the proceeds of our business fund governmental services for Tribe citizens. This also means that Hummingbird Funds is not subject to suit or service of process. Rather, Hummingbird Funds is regulated by the Tribe. If you do business with Hummingbird Funds, your potential forums for dispute resolution will be limited to those available under Tribal law and your loan agreement. As more specifically set forth in Hummingbird Funds’ contracts, these forums include informal, but affordable and efficient Tribal dispute resolution, or individual arbitration before a neutral arbitrator. Otherwise, Hummingbird Funds is not subject to suit or service of process. Neither Hummingbird Funds nor the Tribe has waived its sovereign immunity in connection with any claims relative to use of this mobile site. If you are not comfortable doing business with a sovereign instrumentality that cannot be sued in court, you should discontinue use of this website.