Lansing, Mich. (WLNS) With millions of people out of work, and unemployment causing frustration statewide, people are in need of money. According to money expert Denise Kieser, if you are in need of cash there are certain loans to look into, and other to avoid.
Kieser suggests always looking into loans with the lowest interest rates, which often times is your banking institution. Kieser says many credit unions are offering hardship loans, deferred payments on preexisting loans, and expanding credit card limits.
For home owners, look into re-financing your home, or getting an equity loan.
Kieser says, a last resort is to dip into your retirement fund. She cautions this option but says because of the CARES Act you can borrow from your 401K and 403B and not have to pay an early withdrawal fee. There are two options, you can make a hardship withdrawal or you can borrow the money in the form of a loan. Kieser recommends the loan because you can pay it back.
The option Kieser says to steer clear of, is payday lending loans. Typically, same day cash advance loans have the highest interest rates, and allow the shortest amount of time to pay it back.
Kieser advises, before you consider borrowing any money to come up with a plan.
“Know exactly what we need the money for, how long are we going to use the borrowed money and than what are our expectations for future income earnings in repaying the money because we want to make sure we do not go to far into debt during the crisis.”
For more information on loan options click the following links.