Are you a resident of California and think you need a subprime loan? If you are at the point where you have fallen behind in payments, or you are at the point where you can only afford to make the minimum monthly payments on your mortgage, vehicles, debt consolidation loans, and credit cards then you might be saved by a subprime loan – maybe!

If you are in dire straits as described above you may not be able to afford to put gas in the tank, buy enough groceries, outfit yourself (or your family) with adequate clothing, and keep up on your phone bills, utility bills, heating bills, and water bills. You need to get some help and you need to get it ASAP.

You will have to borrow money, and you most certainly will fall into the subprime personal loan market. If you just go ahead and borrow money from a subprime lender without any thought into how you are going to rebound from your precarious financial situation, you could very well make things even worse. Why? Because unless your financial situation is due to a layoff or a medical condition within the household, you have been living beyond your means, and that has to change.

Don’t get me wrong, I’m not slapping your wrist here because you are not alone in your need for a subprime loan – if you see my foreshadowing above, you can see that I’m suggesting your subprime loan should be in the form of a debt consolidation loan. You need to lump all of your debt(s) into one (with or without an attorney or trustee) and make one payment per month, but that is only the given factor in a last chance (before bankruptcy) subprime loan.

Usually if you borrow money as a subprime loan this means that you stuck with wild interest rates and there is no real counselling or financial advice given. You don’t have an opportunity to negotiate a “pennies on the dollar” pay-back to your creditors either. So you see the reasoning here? Getting just another so-called subprime loan with a high APR of 10 % to 20 %, or even higher, just exasperates the situation. I believe that I have repeated myself in this article, but I want to make the point clear.

My advice is to make an appointment with a trustee to negotiate a settlement with your debtors and pay back as much money that you can without placing too much of a financial burden on yourself and/or your family. Usually with a negotiation like this you pay back only a portion of your debts and you don’t have to declare Chapter 7 or Chapter 13 bankruptcy.

So don’t be swayed by some of the predatory subprime lenders you may see online or offline. Take a good hard look at your financial situation and ask yourself if just another subprime loan will do you any good. Ask yourself if your financial situation is close to being as bad as the scenario in the beginning of this piece.

….you may not be able to afford to put gas in the tank, buy enough groceries, outfit yourself (or your family) with adequate clothing, and keep up on your phone bills, utility bills, heating bills, and water bills

What To Do If You Get Approved for a Subprime Loan

The first thing to do is pay off your debtors as much as possible and still leave enough money over to use on leveraging your personal finances. A perfect example would to use some money for training so you can learn a new trade or career – or maybe use it for selling your home, and downgrading your home temporarly. It may be time for tough choices and for chaning your spending habits and earning habits. I know how hard it can be to change spending habits and lifestyle habits, but change they must.

There are literally thousands of things you can do differently to save money, and stop spending money. There are ways you can go about changing your entire family budget and bring yourself from the brink of bankruptcy to indefinite solvency. Don’t rule out hope because it is hope that will give you the gumption to fully realize the will power and determination required to make the much needed changes in your lifestyle and day-to-day choices.