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#Money doesn’t grow on trees, unfortunately, and sometimes you need to borrow money in a pinch for a cash infusion. Even pre-pandemic, Americans borrowed money to bridge the gap between paychecks, cover unexpected expenses, or finance larger purchases like home improvement projects or cars.

A recent Forbes survey found that many Americans who borrowed money experienced more financial benefits in the long run. In the survey, 69% of those who have borrowed money in the past said it made their financial situation better compared to 6% who said it made their situation worse. Those whose finances benefited from borrowing money likely followed responsible practices to avoid pitfalls.

Borrowing Money in America r/LoansPaydayOnline

Only a small percentage of Americans prefer to not borrow or have never borrowed money. Of those, 8% prefer to use personal savings while 19% have never borrowed money. Among Americans who are open to borrowing money, \personal loans and credit cards are the most common methods.

It’s much easier to avoid financial pitfalls if you use personal savings or an emergency fund, and, therefore, avoid borrowing money altogether. But for some, borrowing money is a necessity, especially for unexpected expenses. Whether you borrow money through a \payday loan, personal loan, credit card, line of credit, or friends and family, it’s essential to ensure you can afford the monthly payment obligation. Doing so will help you leverage the money more effectively and keep your finances in shape throughout the process.

One way to decrease your monthly payment is through lower interest rates. Because your credit score is a key factor in determining your interest rate, it’s in your best interest to improve your credit score before borrowing money. The lowest interest rates are typically reserved for those with good to excellent credit (a FICO score of at least 670). Less than half of Americans fall into this range.

Not only is improving your odds of receiving a lower interest rate a handy way to avoid financial pitfalls, but Americans say that the lowest rates and fees are most important when looking to borrow money. Coming in a close second and third are high loan amounts and long repayment terms, respectively.

Borrowing Money Improved Financial Situations

Borrowing money doesn’t always have a negative impact on your financial situation. In fact, 69% of Americans said borrowing money made their financial situation better.

Although more than half of Americans said their financial situations improved from borrowing money, 6% of Americans said their situation worsened. Financial situations typically worsen due to an unexpected hardship or by not following responsible debt practices. To avoid financial pitfalls when borrowing money, we recommend you:

• Pay your bills on time or early to avoid hurting your \credit score
• Borrow below your means and within your budget
• Take the time to find the lowest rates and fees to reduce overall borrowing costs
• Improve your credit score or apply with a co-signer to increase your chances of receiving the most favorable terms
• Don’t overspend if you’re using a credit card or line of \credit
• Set up automatic payments to never miss a payment
• Monitor your monthly statements
• Consolidate high-interest debts into one streamlined payment

These responsible practices are key for both current borrowers and the 73% of Americans who plan to borrow money in 2023. LendPlans.com is an All in One offer that combines 3 financial products - personal, payday and installment loans. The offer has a user-friendly step-by-step request form that makes customer experience super simple and enjoyable. Another great thing is an option to recognise customers and login them into their accounts with a pre-popped request form. \#paydayloans

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