- 1). Look in your local classifieds under "Lenders, lending, loans", etc. Some may be local. That would be the best case scenario, so you can visit them in person. Regardless, call them and see what their criteria are for personal loans in the range for which you are looking.
- 2). Be prepared to answer some questions about property, income and your general setup. Lenders will do a background check on you anyway to get your total financial picture, so be honest. Try to stay flexible in the terms that they offer, if you can.
- 3). Make sure you are comfortable with the process as you proceed. After you have spoken or met with two or three lenders and have found one that is offering a flat-rate personal or collateral loan, have them give you or fax to you a preliminary contract that you can go over by yourself without anyone there, so you do not feel pressured to accept it without having a chance to think about it and discuss it with your wife or husband. Do look online for their website, credentials, licensing and possibly any negative feedback that could be there. Check with the Better Business Bureau for any complaints.
- 4). Go over the proposal with your lawyer, your accountant, or whoever you trust to be able to spot unethical or unusual requirements or provisions. If you know someone at your bank really well, you can run it by them, if they are willing to look at it. If you want to add or take something out of the agreement, tell them. They are small enough where they can do that.
- 5). Pay off as much of your credit card debt as you can, starting with the highest interest rate card and next, the card with the highest minimum payment. This will free up money to pay the loan payment. You should be given a loan payment schedule showing you how much your fixed payment is and how much the loan balance is reduced each month. The loan will be paid off so much faster this way, with far less going to interest.
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