- Personal Finance
$20000 Loans For People With Bad Credit
Lately there have been a lot of people that have lost their life savings by putting it all on red, or in housing terms, leveraging up to the hilt, taking money out of their houses, and then spending the money on either another house or on three hundred dollar jeans and eighty thousand dollar cars and boats. While this is the fun life it is also financially reckless and has caused a lot of heartache as home prices have gravitated back to their historical mean, which is to say housing prices have crashed hard.
What all this has done to the consumer is make them climb into a hole and hide while they hope that their house will come back to the previously high prices. Instead of hoping to wait it out they should have lowered the asking price on their homes and gotten out of the overleveraged ATM that they call home. Doing this would have provided huge liquidity and they would be in far better shape then they are now.
So if you are one of the people that finally can’t afford your house payment, have had your cars repossessed, and lost your TV what are you to do? After all you now have bad credit and are flat broke. Well a lot of people are looking for huge loans right now. Are you looking for $20000 loans for people with bad credit? It is not the end of the world but it is worth taking a step back and asking what the heck has to happen for you to pay back any loan that you are able to get accepted for.
So now that you realize what needs to change in your life and you have a plan to pay back the loan that is both realistic and according to the loan covenants what do you do for $20000 loan? Basically you have several different options. The best of which is to just sell your boat and or cars to fund your life but you can also go to lenders and see what is available.
Several things come into play when getting a loan of that size. Do you have anything that does not already have a lien against it? If so you can get an asset backed loan which will be relatively cheap compared to a non collaterized loan. If you have good enough credit however you can still get an unsecured loan for $20000 but it is usually a lot harder and more expensive.
My Honest Advice For $20000 Loan Seekers
This is going to be some honest brutality. If you're looking for a $20000 loan to solve your problems, you might want to consider bankruptcy. If you need a loan that large and you have bad credit, you are in WAY over your head. You might be able to get a bad credit loan for $5000. You might even be able to get a bad credit loan for $10000, but if you need $20000 you are going to have to come up with an asset that doesn't already have a lien because otherwise you are going to have a very difficult time. I would recommend unloading all of your stuff and finding a bankruptcy attorney.
If Your Home Is Paid Off
If your home is already paid off, your problem is probably solved. All you need to do is take a look at home loans for people with bad credit. Your home will of course no longer be paid off but you'll at least have some cash to get on top of all of your bills.
Michael Scott Declares Bankruptcy
Most people are really afraid of bankruptcy but if things are this out of hand, I think you should give it some honest consideration. My friend's dad declared bankruptcy in 1998 and now is worth almost 100 million dollars. Sometimes it's worth restructuring and starting over.
You can take a look at what I have on personal loans for people with bad credit, signature loan requirements, and Wells Fargo signature loans but my honest opinion is that you are going to have a really hard time finding anything that will work unless you have a rich uncle.