Thanks for your question on hardship loans and getting financial help when you are financially struggling. If you do not have any collateral, what you seek is a signature loan, which is also called an unsecured loan or personal loan. Personal loans are risky for lenders due to their lack of security and relatively high default rate. Therefore, most lenders charge high interest rates on personal loans, especially those for people with a checkered credit history. You should first try to explore if you can qualify for a refinance loan, and try to refinance your mortgage. If you do not own a home, or cannot qualify for a refinance loan, then turn to alternative personal loan products, but beware of the cost and the interest rates involved.
You may find that using an unsecured personal loan to consolidate debt can actually cost more than continuing regular debt payments. Depending on your financial situation, there may be a few alternatives to a traditional personal loan that could assist you in resolving your debt.
I have six suggestions for you and your quest for a hardship based loan:
First, read the Federal Trade Commission document, "Payday Loans Equal Very Costly Cash: Consumers Urged to Consider the Alternatives." You may not be considering a payday loan (I strongly discourage payday loans), but the FTC's suggestions are sound and I recommend reading this document to determine if any of the suggested alternatives to payday loans will work for you.
Second, consider a loan from Prosper, which is a peer-to-peer lending and investing company.
Third, another peer-to-peer lending and investing company is Lending Club, at which you may find a lender.
Fourth, if you have a 401(k) account, ask your 401(k) plan administrator if loans are allowed under your plan. Not all plans allow loans, or limit loans to certain circumstances. I do not recommend taking a hardship distribution from a 401(k) account unless your situation is dire.
Fifth, visit the Bills.com Loan Resources page to find out more about the loan options available to you.
Finally, if you own a home, you may want to consider a mortgage refinance to tap into the equity you have in your home. Bills.com makes it easy to compare mortgage offers and different loan types.
See the Bills.com mortgage refinance savings center to get no-cost quotes from up to four pre-screened mortgage lenders.
Lastly, if you are financially struggling you should simultaneously explore the services of a debt relief provider. You can learn more about debt settlement, credit counseling, debt consolidation loans and all other forms of debt relief at the Bills.com debt relief hub.
I hope this information helps you Find. Learn & Save.