If your financial problems have reached the point where you do not see a way out and you feel as though you are drowning in debt, your best way out is through declaring bankruptcy. Filing may well allow you to get your finances back on track
Thankfully, there are now several web sites that are there to help people like you with bad credit to find the fast personal loans that you need. When you have bad credit, the first thing that you should be looking for is a loan company that
You may see ads promising -
- Self-Liquidating "LOANS!"
- Investment Capital Overnight!
- Your "LOAN" has been Approved!
- BORROW Money And Never Pay Back!
- etc.
A self-liquidating "LOAN" is fiction. You will never get a loan that youwill never have to pay back from anybody. You need to be very careful whenyou are presented with the opportunity to get "money for nothing!"
A true, self liquidating "LOAN", standing on it's own, is a pipe dream - it'sperpetual motion. A loan that pays itself off is of NO benefit to the lender-so, Why Would They Do It? The answer is simple - they WON'T!
Con men typically ask for up-front fees to get people a Self-LiquidatingLoan. "Your "Loan" Has Been Approved" is their typical ploy. Since there is NOsuch thing as a Self-Liquidating "Loan" this should be a tip off that allthey want is your money and you will never see such a "LOAN"! Remember themoney MUST come first, and if they can't prove to you how the money willcome first to create such a transaction, you will lose any money you pay tothese con men.
Also beware of the con men that do not charge front fees but want to see ifyou qualify for such a "LOAN", then notifies you later that you have beenapproved for a "Loan" and want you to pay points, closing costs, advanceinterest fees, etc.
But there is a way to use this CONCEPT!
In a Self-Liquidating Loan CONCEPT there are no such expenses! Themoney comes first, then the transaction is created using a Roll Account(Compensating Balance)!
A Self-Liquidating loan actually does NOT exist. I know you see several adsin many publications advertising such a loan. There has been a mystiqueabout these loans. Many people believe that to get a so-called SelfLiquidating, Loan one only needs to apply and like magic, there it is! Amulti-million dollar loan with money pouring out of the envelope! Not so -but the Self-Liquidating Loan concept is done every day and you can learn how!
There is ONE way for a TYPE of self-liquidating loan to exist. Remember, Isaid *type* of self-liquidating loan.
A better term for a "self liquidating loan" would be a Roll Over Loan, RollProgram or a Compensating Balance Loan.
What is a Roll Over Loan?
Simply put - a roll over loan is a security-based loan that starts out with asecurity such as a CD, zero coupon bonds, government savings bonds,debentures, bank notes, etc. as collateral for the loan and as final paymentfor the loan.
These can be purchased at a fraction of their end value and can be used ascollateral for a loan.
Example 1a:
An example would be Government Zero Coupon Bonds. These bonds canbe bought at a discount of normally 33% of the face value. A $1,000 facevalue bond could be bought for around $330. The government guaranteesyou a return of $1,000 or a $770 profit. Offering this secured financialinstrument to a financial institution as a compensating balance for your loancreates a form of a self-liquidating loan. Borrow $1,000 and receive $770.
Example 1b:
Another example would be life insurance or annuity. If you have an annuitythat pays a fixed or variable amount it would be possible to instruct thisfinancial instrument to be used as a compensating balance for the loan youwant to take out. In fact many times the insurance company could be in aposition to arrange this form of a self-liquidating loan via an annuity.
Example 2:
You will need to find an investment group that functions in an offshoreenvironment. (An offshore environment provides you with higher interestrates and higher returns on your money along with lower lending rates.) Use thisgroup to leverage your money, thus creating a compensating balance. Thiscreates, in effect, a "self liquidating" situation. In this example you notonly receive a "loan" but you will receive a residual income besides!
Final Note.
Remember, if there is no security placed up front, NO lender will evenconsider providing a loan under these conditions. However, there are placeswhere you can find information on how to create a roll program! You justhave to find one that you can trust.
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Roll Over Loan, Self-liquidating Loans, Self-liquidating Loan, Self Liquidating, Roll Over, Over Loan, Compensating Balance
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