Friday, February 26, 2021

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New Baby Loans – Why & How to Get One

Posted: 25 Feb 2021 08:16 AM PST

Summary

  • Having a child is expensive; there are a number of different costs associated with having a baby, including doctor’s visits, clothing, care items, and more
  • Getting a birth loan to help you cover the costs of having a baby?
  • New baby loans can give you the financial aid you need to cover expensive medical costs, diapers, and so much more

Bringing a new life into the world is a wonderful miracle, but it is a miracle that comes with considerable costs. Many new parents don’t realize the economic costs of having a baby.

Childbirth alone typically costs close to $10,000. You also have to think about all of the doctor’s visits, clothes, diapers, food, toys, strollers, cribs, and other items you will need to purchase as well.

Luckily, new parents can get baby loans to help them cover the costs of everything associated with their beautiful new child.

New baby loans are a type of personal loan designed with new parents in mind.

Having a baby is expensive. If you’re feeling the financial pinch, before or after having a baby, then a baby loan may be the right financial choice for you.

If you’re ready to compare interest rates on baby loans in your area, enter your ZIP code above.

What is a new baby loan?

Birth loans, or baby loans as they are sometimes referred to, are personal loans designed for new parents.

There are auto loans, home loans, student loans, and all types of other loans available. Why shouldn’t there be a loan option for new parents?

Baby loans can help new parents save money when compared to using a credit card for the same costs. You can often secure a lower interest rate on a baby loan than you can on your average credit card.

You will need to qualify for a baby loan with a lender. There are specific baby loan lenders, and there are also general lenders like your bank or credit union where you can go to apply for a baby loan.

How do I get a new baby loan?

You get a birth loan by applying with a lender. There are many baby loan lenders who will allow you to submit a loan application online. Otherwise, you will have to go into your bank or credit union and fill out a baby loan application in person.

This application will require your personal and financial information so that the lender can make a decision about how much money you will qualify for and what your interest rate will be.

How much money can I get in my new baby loan?

How much your baby loan is approved for will depend largely on your income, credit score, and current assets.

Lenders are not going to give you massive amounts of money that you cannot afford to pay back. They will look closely at your income and determine how much money you can realistically afford to borrow.

The birth loan you are offered will be customized based on your financial and personal information. While we can’t give you an exact figure, we can tell you that many people can qualify for baby loans up to $20,000.

What personal information will I need to include in my baby loan application?

Lenders often want to see a number of different personal and financial pieces of information in order to process your loan request.

You can expect to share your current employment details, possibly a past employer as well, pay stubs, financial statements, your credit score, and potentially more, depending on the lender.

If your credit score is too low, your lender may require you to have a cosigner as well before they give you a new baby loan. A cosigner mitigates the risk the lender is taking by agreeing to pay your debts should you fail to make your loan payments.

If you want more information about personal loans, check out this helpful resource from Experian.

Is there anything else I need to know about new baby loans?

Baby loan servicing is often done by specialized lenders. You likely won’t have a previous relationship with these lenders like you would with your bank or credit union.

When opening any line of credit, it is important to completely understand the terms of your loan agreement.

Be sure you read through your baby loan agreement carefully, and do not sign the loan agreement until you completely understand what you are agreeing to.

Does your loan have a penalty for prepayment? Many lenders stick this clause into their loan agreements. This means you will be penalized for paying your loan off early. Why do they do this? It is an effort to ensure they maximize the interest payments they receive from you.

If you take the time to fully read and understand your baby loan agreement, you can ask your lender to strike a ridiculous fee like a prepayment penalty from your loan agreement. You should never be charged for paying early.

Other hidden fees that you may want to look out for are loan processing fees. These are charges for nothing more than creating a loan.

If you read through your agreement and understand that this is being charged to you, you can ask your lender to remove this fee or else take your business elsewhere.

New Baby Loans: The Bottom Line

The cost of having a baby and raising them in their first year of life is very high. Parents do not need to struggle. New baby loans exist to help parents cover the high costs of childbirth and early development.

Don’t wait until you are overwhelmed financially to seek help in the form of a loan. If you’re ready to apply for a birth loan, enter your ZIP code below to compare baby loans in your area.

References:

The post New Baby Loans – Why & How to Get One first appeared on Loans.org.

Financing End-of-Life Care

Posted: 25 Feb 2021 08:15 AM PST

Summary

  • End-of-life care is an important service given to those who are in the final weeks, months, or years of their lives
  • Financing end-of-life care services can be very costly, but luckily government programs or insurance cover these costs most of the time
  • Palliative care provides more than just aid in accomplishing daily tasks; it also provides emotional support and companionship in life’s final days

Caring for a loved one near the end of their life can be costly and time-consuming. End-of-life care is usually handled by professionals in-home or in a nursing home.

The cost of this care can be expensive. What about financing end-of-life care?

There are no specific financing companies or lenders that cater themselves to end-of-life care like there are for other types of personal loans. In many cases, there are government programs or insurance plans that will cover the majority of the cost of palliative care.

If there are additional costs associated with end-of-life care, you can choose to finance this with a personal loan or by using savings or other financial means.

We’ll take a closer look at palliative care, financing options for end-of-life care, and more. If you’re ready to compare interest rates on loans to finance end-of-life care, enter your ZIP code above.

How much does end-of-life care cost?

The cost of end-of-life care will depend on a number of different factors, including how sick an individual is, how much help they need, etc.

While exact costs are hard to pin down, end-of-life care costs statistics show that these costs account for ten percent of all health care spending in the United States. You can read more about this staggering figure from NPR.

End-of-life care is generally referred to as palliative care by health care professionals. Palliative care is usually covered by insurance or government programs, but we will explore this further below.

What is palliative care?

This is a specialized type of medical care for people living with a serious illness or near the end of their life.

Palliative care is not necessarily trying to cure anything. This type of care is designed to ease the pain of disease and assist in accomplishing daily tasks like dressing, cleaning wounds, etc.

Palliative care also provides people with a little companionship near the end of their life. This type of care can offer comfort and emotional support too.

What is included in palliative care?

Palliative care includes quality of life care designed to make a person’s daily existence a little better. These care services can include:

  • medication
  • emotional support
  • symptom relief
  • help with daily tasks
  • help with understanding your disease or condition
  • coordinating with your other doctors

Palliative care can include a number of different things. Anything that can help make a sick person’s life a little better or easier generally falls under the umbrella of palliative care.

Who pays for palliative care?

In the grand majority of cases, palliative care costs are covered by health insurance, government program, or life insurance policies. In some cases, these coverages may not fully cover all of the costs associated with this care.

In these instances, you would need to pay for the rest of the care yourself through some other means. If you have Medicaid or Medicare, you should speak with your health care program about your needs and coverage.

If you are struggling to find financing for end-of-life care, you can likely get relief through another government program.

If you have concerns about the costs of palliative care, a financial consultant or a social worker from your palliative care team can help you go over your payment options.

How do I finance end-of-life care?

There are no specific companies that offer palliative care financing. However, this doesn’t mean you don’t have financing options. You could always seek a personal loan.

Personal loans are different than student loans or auto loans, but they can be an effective way to help you pay for medical bills that you can’t afford.

When getting a personal loan for end-of-life care, you need to be careful that you are not getting taken advantage of. These loans often have higher interest rates than auto loans, and there are a lot of companies that will quickly approve you for a loan with no collateral.

Lenders could shy away from you if you are near the end of your life. This creates more risk for them and makes the recovery of their money less likely. You may need to get one of your children or someone else to co-sign your loan agreement with you in order to get a loan.

Taking out a loan makes more sense for children of those who need palliative care, but this option should be a last resort after all government assistance and insurance options have been exhausted.

Financing End-of-Life Care: The Bottom Line

You likely won’t have to worry about financing end-of-life care. Government programs, health insurance, and life insurance programs generally cover most of the costs associated with end-of-life and palliative care services.

If you really need to pay for this type of care out-of-pocket, you could explore personal loan options, but this isn’t a great option for this type of care.

Make sure you speak with your Medicare representative, palliative care team, and a financial consultant to fully explore all of your financial options when it comes to financing end-of-life care.

If you’re ready to compare financing rates for end-of-life care, enter your ZIP code below.

References:

The post Financing End-of-Life Care first appeared on Loans.org.

Can you finance funeral and burial expenses?

Posted: 25 Feb 2021 08:14 AM PST

Summary

  • Final expenses and funeral costs can be very expensive
  • If your loved one didn’t leave enough money or have a life insurance plan in place to cover these costs, you will have to pay for these expenses
  • The unexpected costs of a funeral can put a significant financial strain on you and your family
  • There are financing options for funeral and burial expenses

When someone you love dies, the last thing you want to worry about is money. Still, you want to make sure they have a nice burial and service.

Can you finance funeral and burial expenses?

It shouldn’t surprise you that you absolutely can finance a funeral, and you have a couple of different options that you can choose from, including a personal loan.

Many people purchase life or final expense insurance policies to cover their funeral costs when the time comes, but still, many others do not.

If you need help with funeral costs, you should keep reading to find out the different options you have when financing a funeral.

Funeral expenses can be very costly, and if you don’t have extra cash lying around, you might be at your wit’s end wondering how you will pay for a nice funeral.

If you’re ready to finance a funeral, enter your ZIP code above to compare rates on personal funeral loans.

How much do funerals cost?

Average funeral costs range from $7,000 to $12,000, but costs also depend on a number of different factors, including whether or not the body will be cremated.

This is not an insignificant amount of money. Most people don’t have this kind of money just lying around.

If someone you love dies unexpectedly, the cost of the funeral and other final expenses could fall on you.

What do you do if you don’t have the money to pay for a funeral or burial expenses?

Luckily, there are options available to those who have lost someone and need to finance their funeral. You can read more about funeral expenses on the Federal Trade Commission website. They also offer helpful tools to help you calculate the total costs of the funeral.

Are there funeral loans?

Yes, lenders do offer funeral loans. In fact, there are many lenders who specialize in funeral loans.

The companies that specialize in funeral loans may be your best choice since they will be prepared to handle the unique needs of a funeral service.

Generally, funerals are not planned very far in advance. Someone dies, and then their service must be planned.

Funeral loan companies are aware of the unique time constraints and work to make sure that you have the money you need to give your loved a proper burial or cremation.

Could I get a personal loan to finance a funeral instead?

You could choose to get a personal loan instead of a funeral loan, but these two types of loans are basically the same anyways.

Funeral loans are written as personal loans. The advantage of choosing a funeral loan company is that your repayment terms may be unique to funerals.

Whereas if you get a personal loan from your bank or credit union, the terms of your loan will be the standard personal loan terms that the lender offers everyone.

At this challenging time of your life, it may be in your best interests to choose a specialist. However, you should compare terms and interest rates and find the best loan for your financial needs.

Obviously, with a funeral, you will have less time to shop around than you would if you were just looking for a personal loan to cover other expenses or costs.

What do I need to know about financing funeral and burial expenses?

Funeral loans and personal loans are different from auto loans, student loans, and credit card debt. Personal loans can have a huge impact on your financial future in a positive or negative manner, depending on how you manage your debt.

You need to remember that you are going to pay more for your loan than the total value of your loan due to interest rates. You also need to remember to carefully read the terms of your loan agreement. You could get stuck with all sorts of fees designed to make lenders money.

There are a few fees you should make sure are waived or not included in your loan agreement. One is prepayment penalties.

If you pay your loan early, you are penalized; lenders do this to make sure they get all of the interest they can out of you.

The other fee to keep a close eye on is a loan origination fee. This is basically a fee for taking out a loan. Many lenders will charge one percent of the total loan as a fee. Ask to get this fee waived.

Funeral loans are personal loans so remember to look for these hidden fees in your loan agreement.

Will my credit score affect my funeral loan?

Since funeral loans are personal loans, which are unsecured loans, your credit score will have a big impact on the terms and interest rate of your funeral loan.

If you have a low credit score, you will have higher interest rates. It is a good idea to weigh all of your options before you choose to take out a personal loan with a poor credit score.

We understand that you don’t have a lot of time to assess your financial path forward when it comes to funerals, but it is important to make sure you weigh all options before taking out a loan.

Financing Funeral and Burial Expenses: The Bottom Line

Funeral loans are personal loans designed to cover the costs of final expenses. You can choose to get a personal loan from your banking or lending institution, or you could choose to work with funeral-specific lenders.

Make sure you understand all of your options before you take out a loan. If you’re ready to compare funeral loan interest rates in your area, enter your ZIP code below.

References:

The post Can you finance funeral and burial expenses? first appeared on Loans.org.

What You Need to Know Before Taking Out a Loan

Posted: 25 Feb 2021 08:13 AM PST

Summary

  • Sometimes there isn’t enough money in emergency savings, and you need money to pay for medical bills or auto repairs
  • Many people in this situation turn to personal loans to help them cover surprise costs
  • A personal loan could be the right choice for you, but you need to be careful, and you need to make sure you completely understand the terms of your loan

Taking out a loan can have a large impact on your financial future. A personal loan could be a real lifesaver when you’re in financial need, but if you’re not careful, you could wind up with more debt than you know what to do with.

We’re here to help you make good loan decisions and understand exactly what taking out a loan will do to your financial future. There are many things you need to know before taking out a loan and while you are looking for one.

We will go over some essential loan information that you should keep in mind when you are making the decision whether or not to take out a personal loan.

If you’re ready to take out a personal loan, enter your ZIP code above to compare personal loan interest rates in your area.

Why do you need a loan?

What is a loan for? Before you take out a loan you should have a good idea about what you need your loan for. Many people take out personal loans to cover emergency expenses like medical bills or auto repairs. However, this is not ideal.

Many people also choose personal loans over auto loans when it is time to buy a vehicle. If managed correctly this could be a much more beneficial option than working with a dealership’s financing department.

Whatever the case may be, taking out a loan should not be done lightly. Make sure you have a good reason for taking out a loan before you do so.

How do I take out a loan?

If you are wondering how to take out a loan, it is simple. Most people just go to their bank and fill out an application. This is one of the easiest options for taking out a loan.

Getting a loan with your personal bank makes repayment easier. You also already have a relationship with your bank, and they will likely be able to approve your application quicker than other lenders.

While getting a personal loan with your bank may be the easiest option, it may not be the most affordable or offer the best repayment terms. It is wise to shop around and see what types of personal loan offers are available for you.

You can enter your ZIP code on this website to start shopping for personal loans in your area. There are also a ton of online resources that can help you find the best possible personal loan for your needs.

Check out Experian’s online resource for personal loans if you’re interested in reading more about this subject.

How much money can you afford to pay back when taking out a loan?

Once you have decided you are going to take out a personal loan, this is the most important question for you to consider. Just because you can technically make payments doesn’t mean you can necessarily afford the loan you are paying for.

If you’re living month to month without saving money, you are one more disaster away from not being able to make your loan payments. This could cause you to slip into further financial trouble.

What you need to understand is that you are going to pay more than your loan total due to interest.

Depending on your interest rate and your repayment terms, you could be paying thousands of dollars more than what your original loan was for.

Do you understand the terms of your loan?

Lenders build in all sorts of tricky ways to get more money out of you. Before you sign any loan agreement, make sure you know what you are signing.

There are a couple of fees that lenders try to shoehorn into loan agreements that we will notify you about, including loan processing fees. This type of fee is most often seen with mortgages, but personal loans will include them as well.

You could be charged one percent of your total loan or more just for taking out the loan. See if these fees are included in your agreement. If they are, try to get them waived.

Some lenders charge prepayment penalties. That’s right; you could be penalized for paying off your loan too quickly. Why would they do that?

Simple, lenders want to get as much interest out of you as they possibly can. This is why they include this ridiculous fee. We strongly suggest you move to strike this fee from your loan agreement.

All lenders will charge late fees if you make a late payment. You may be able to get these fees waived one or two times, but this is not a good habit to get into. Late payments can hurt your credit score and cost you more in fees.

Taking Out a Loan: The Bottom Line

You should never take out a loan lightly. This is a serious financial agreement you are entering, and there are a few key things to know before taking out a loan.

Be sure that you really need the loan before you agree to it. Loans can be great or terrible for your financial future, depending on how you manage your debt.

If you’re ready to take out a personal loan, enter your ZIP code below to compare loan rates near you.

References:

The post What You Need to Know Before Taking Out a Loan first appeared on Loans.org.
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