Before you apply for a loan you will want to make sure that you can comfortably cover payment, this is your opportunity to get your credit back on track - don't turn this into a situation where your credit will end up worse than it was. It is important that you pull out your pay stubs and review all your living expenses such as rent, car (gas, maintenance, insurance, etc), food, utilities, clothing and all other living expenses and make sure that you are not going to over-extend yourself. It's too easy to put yourself on road to financial ruin, always remember to be responsible with your debt load and that banks will lend you money to point where you will be dependant on loans of rest of your life - after all that's banks business is to make money from loans. I personally have never taken out a loan to maximum of what a bank will lend as it is almost always too much because they usually calculate your loan on before tax dollars and fact is you need to live off of after tax dollars.

This article courtesy of http://www.quicloan.com. You may freely reprint this article on your website or in your newsletter provided this courtesy notice and author name and URL remain intact.

What is a Roll Over Loan?

Simply put - a roll over loan is a security-based loan that starts out with a security such as a CD, zero coupon bonds, government savings bonds, debentures, bank notes, etc. as collateral for loan and as final payment for loan.

These can be purchased at a fraction of their end value and can be used as collateral for a loan.

Example 1a:

An example would be Government Zero Coupon Bonds. These bonds can be bought at a discount of normally 33% of face value. A $1,000 face value bond could be bought for around $330. The government guarantees you a return of $1,000 or a $770 profit. Offering this secured financial instrument to a financial institution as a compensating balance for your loan creates a form of a self-liquidating loan. Borrow $1,000 and receive $770.

Example 1b:

Another example would be life insurance or annuity. If you have an annuity that pays a fixed or variable amount it would be possible to instruct this financial instrument to be used as a compensating balance for loan you want to take out. In fact many times insurance company could be in a position to arrange this form of a self-liquidating loan via an annuity.

Example 2:

You will need to find an investment group that functions in an offshore environment. (An offshore environment provides you with higher interest rates and higher returns on your money along with lower lending rates.) Use this group to leverage your money, thus creating a compensating balance. This creates, in effect, a "self liquidating" situation. In this example you not only receive a "loan" but you will receive a residual income besides!

Final Note.

Remember, if there is no security placed up front, NO lender will even consider providing a loan under these conditions. However, there are places where you can find information on how to create a roll program! You just have to find one that you can trust.

This article courtesy of http://www.quicloan.com. You may freely reprint this article on your website or in your newsletter provided this courtesy notice and author name and URL remain intact.