A high-income caller shocked Dave Ramsey co-hosts when he revealed he was considering bankruptcy over debts they argued could be paid off quickly with proper budgeting. Caller With $130,000 Income Reveals Disorganized Finances And Hidden Debts The caller on The Ramsey Show, identified as Peter, told co-hosts Jade Warshaw and George Kamel he was "stressed about bills" and thinking about filing for bankruptcy. When asked about his debt, he initially estimated a little over $25,000. As the hosts probed dee ...

There are only a few more payments left on your loan, and you’re ready to celebrate. But before you close out the account, you need to know what comes next. Paying off a personal loan isn’t simply about clicking “submit payment” one last time. It affects your credit profile, your monthly budget, and even your long-term financial plans. If you walk into the final payoff with no strategy, you could leave potential benefits on the table. Here's what happens when you pay off a personal loan, how it impacts y ...

While personal loans can be used for a wide range of purposes, lenders typically ask about your intended use of the funds — and that information plays a bigger role than you might realize. Your reason for borrowing can impact not only your chances of approval but also your loan amount, interest rate, and repayment terms. Here's more on how the purpose of your loan can affect the borrowing process. Why lenders care about your personal loan’s purpose While you can use a personal loan for almost anything, ...

When you apply for a personal loan, you have to fulfil various eligibility criteria. Some of these include a good credit score, a low debt-to-income (DTI) ratio, age, income, work experience, etc. Your work experience is one of the criteria that is considered when approving your personal loan application. In this article, we will understand how your overall work experience can impact your personal loan application.Impact of work experience on personal loan applicationOne of the criteria that the bank consid ...

Before applying for a personal loan, most people consider their credit score and income only to determine their eligibility. An individual may have a decent credit score of 700+. Yet, in some cases, the loan application may still get rejected. In this article, we will explore some of the reasons why a personal loan application may get rejected inspite of having a decent credit score.Credit score is only one of the eligibility criteriaBanks and NBFCs have various eligibility criteria for personal loans and o ...

Core Insights - Consumer delinquencies are nearing pre-pandemic levels, leading banks to reduce lending activity [1][5][6] - Despite a rising stock market and a 3.8% year-over-year GDP growth in Q2, there are signs of consumer weakness [2] Lending Activity - Banks are adopting a more cautious lending approach after a strong summer, resulting in a softening of originations across most credit products [1] - Consumer credit activity has slightly decreased month-over-month, with new credit account openings aligning with pre-pandemic levels [3] Mortgage Trends - The percentage of consumers with newly opened mortgages has dropped to 0.30% in September from 0.60% pre-pandemic, indicating a significant decline in mortgage activity [4] - Mortgage delinquencies have increased, with overall credit delinquencies rising from 1.02% in August to 1.13% in September, approaching pre-pandemic levels [5][6] Delinquency Details - The most significant delinquency growth is observed in older accounts that are 90-119 days past due on mortgage payments, marking the largest year-over-year increase among all credit products [7] - Elevated living costs and interest rates are contributing to higher delinquency rates, prompting lenders to be more protective of their capital [6][7]

Core Insights - A Reddit user with a high FICO score of 798 was denied a personal loan by Citi due to low balances on revolving accounts, despite a strong credit history and timely payments [1][2] - The denial was attributed to the user's practice of paying off credit card balances before the statement closing date, resulting in a reported zero balance and perceived inactivity by lenders [2][3] Group 1: Credit Utilization and Reporting - Credit card issuers report balances to credit bureaus on the statement closing date, not the due date, which can lead to misunderstandings about credit usage [2] - Maintaining a small balance on credit cards can demonstrate responsible usage to lenders, as opposed to paying off the balance entirely before the statement [3] Group 2: Lender Perceptions - Lenders may view applicants with no visible debt as suspicious, which can impact loan approval decisions [4] - The general consensus among commenters suggests that allowing a small balance to report each month can improve the chances of loan approval while avoiding interest charges [3]

Core Insights - Gold loans are emerging as a preferred emergency credit option in India due to their quick disbursal, lenient terms, and relatively low interest rates compared to personal loans and credit cards [3][21] - The outstanding gold loans have surged 122% year-on-year, reaching Rs 2.94 lakh crore by September 2025, indicating a significant growth in this sector [4][21] - Gold loan interest rates in India range from 8.75% to 22% per annum, which is considerably lower than personal loans (10-25%) and credit cards (36-40%) [5][21] Growth and Market Dynamics - The rise in gold prices over the past few years has enhanced the borrowing potential for individuals using gold as collateral [2][21] - Gold loans are processed quickly, often within hours, making them a viable option for urgent financial needs compared to personal loans that can take 2-7 days [10][22] - The market for gold loans is expanding as borrowers increasingly recognize the cost savings associated with secured loans compared to unsecured credit options [8][21] Borrower Profile and Loan Features - Gold loans are accessible to a wide range of borrowers, including those with poor credit histories, as the gold itself serves as collateral [11][22] - These loans are particularly suitable for short-term liquidity needs, with tenures ranging from 3 to 36 months, and can be used for various expenses such as weddings or minor renovations [13][22] - The documentation process for gold loans is minimal, typically requiring only identity proof and ownership proof of the gold, making it easier for borrowers to access funds [14][22] Cost Considerations and Fees - While gold loans offer lower interest rates, borrowers should be aware of additional costs such as processing fees (up to 5% of the loan) and late payment charges that can increase the overall cost of borrowing [15][22] - The Loan-to-Value (LTV) ratio for gold loans is capped at 75% by the RBI for loans above Rs 5 lakh, but new customers may receive only 60-65% from lenders [17][22] - Understanding the type of interest rate (fixed vs. floating) is crucial for borrowers, as floating rates may change with market conditions [18][22] Current Market Rates - Current gold loan interest rates from major banks include: - State Bank of India: 8.75% p.a. onwards - Bank of Maharashtra: 8.75% p.a. onwards - HDFC Bank: 9.30% p.a. - 17.86% p.a. - Punjab National Bank: Contact the Bank for rates [19][22]

Barclays agrees to acquire US personal loan platform Best Egg for $800 million, part of the British lender’s push to deepen its presence in the world’s biggest economy https://t.co/1vYBjU9jyo ...

Core Insights - A Reddit user, previously with a perfect credit score, is now facing over $177,000 in debt and considering bankruptcy [1][5] Financial Situation - The individual has $118 in total cash and over $160,000 in credit card debt across multiple banks including Bank of America, Barclays, American Express, Capital One, JPMorgan Chase, and U.S. Bancorp [2] - Additionally, there is a personal loan of nearly $17,000 from SoFi with a 12.66% interest rate [2] Employment and Income - The individual was previously employed at a major tech firm with an annual income of approximately $175,000 but is now unemployed and reliant on disability income [4] Community Response - The Reddit community has strongly advised the individual to file for Chapter 7 bankruptcy, with many suggesting it is the best course of action [5] - Concerns were raised about the implications of continuing to use credit cards prior to filing for bankruptcy, as it could affect the bankruptcy case [5] Future Considerations - Commenters urged the individual to think about post-bankruptcy life and the potential consequences of damaging relationships with major banks [6]