Today on MyMoneyLife with Chuck Bentley

There was a time when if you wanted to borrow money, you had to sit down face to face with a loan officer at the bank.

All that went the way of buggy whips with the arrival of credit cards and home equity loans, but now personal bank loans are actually making a comeback.

According to SmartMoney.com, the credit crunch and the collapse of housing values are making personal loans more popular with banks and borrowers. In fact, personal loan applications have gone up more than 10% at some banks.

Here are 3 things you should know:

1. In the last 2 years, credit card companies have cut $1.5 trillion from cardholders’ credit lines, and they’re expected to keep on doing so through the end of 2012.  That could drive up the demand for personal loans even more.



2. You must have a regular income to qualify, and you’ll probably need a checking and savings account with the bank in order to get a personal loan.  Banks want to sit down face to face with borrowers to determine their credit-worthiness.



3. Personal bank loans range from $3,000 to $100,000. Interest rates on personal bank loans are now running from 8% to a staggering 26%. So they’re not cheap at all.

My advice, don’t look at personal loans as an easy way out of money trouble.  If your credit card company has lowered your credit limit, consider it a blessing and avoid taking on any new debt.

And if you need help getting your finances under control, that’s why we’re here. I hope you’ll go online and learn more at Crown.org.

Dos and Don'ts of Credit Cards

The primary cause of financial problems for most families is the misuse and abuse of credit cards.

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Credit Card Interest and Fees

By the Fair Credit and Charge Card Disclosure Act of 1988 credit card issuers are required to provide applicants with detailed information.

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Using a Credit Card

There is nothing wrong with using credit cards if people are able to discipline their use by following some very simple guidelines.

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Rollover Method for Paying Off Credit Cards

There is a light at the end of the debt tunnel. By applying some simple principles, you can begin to pay off credit cards and become debt free.

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Other Resources:

• ABCs of Money Package
• Career Direct
• God's Principles for Operating a Business
• Business By the Book
• Crown Mvelopes