Does Your Taste in Handbags Reflect Your Taste in Loans? | Renee & Shanice

Updated: Jun 7, 2020

Good morning Honeys,

How is your morning going?

I love handbags, especially high-end designer ones. I would take a Birkin over a man any day. Although the prices can make any woman nervous. I get the same feeling when I think of loans, as you can tell, personal finance is my passion. I shudder to think of how much money people are spending on interest and fees because they don’t know how to choose their loans.

With so many types of loans available, it's completely understandable that it can be overwhelming to most people. So, as usual, I'm going to do my best to make things simpler.

1. Secured Personal Loan

A secured personal loan is like a Hermes Birkin Bag, it’s a large amount of money, but if you wait long enough, it can become an excellent investment. This type of loan is perfect for doing home renovations since, in most cases, you can get back a return on your investment.

The problem with is the type of loan is that it will take a lot of time to get, like the Hermes Birkin bag.

2. Unsecured Personal Loans

An unsecured personal loan is like a Chanel Classic Flap, it’s a great bag, but there are no guarantees that you will make your money back. Since an unsecured personal loan comes in the form of a line of credit, the application process is a little easier than a secured personal loan. It as a higher interest rate, and you will also get less money which you must pay back on a monthly basis.

So, it's not a Birkin, but it's still a great bag and for less money.

3. Title Loan

A title loan is like a Gucci bag, it’s great to have one, to say you can afford it, but in the long run, it has no real value. You get a title loan when you own a car or a boat. You can use it as insurance to get cash. The lender will keep the title until the loan is repaid in full and usually within 30 days.

4. Pay Day Loans

Payday loans are like purchasing any tiny bag, like the one from Valentino's trend. Seriously, what are you supposed to do with them? Payday loans are the worst types of loans since they charge a crazy high fee to get the least amount of money. They target the poorest and the most gullible of disparate people.

Since they use your paycheck as collateral for the loan, they will automatically withdraw the money from your bank account on your payday. Then charge you fees and interest up to 400% until the loan is paid in full.

5. Payday Alternative Loans

The Alternative Payday Loan is like the Basket bag, it's a complete waste of money but, looks great on Instagram. It is a better option than a payday loan since you have a longer time frame to pay the money back, about 6 months. You will pay fewer fees but it's still not the best. It just looks better.

6. Home Equity Loans

Home Equity Loan is your Dior bag, you get all the benefits and quality of a designer bag but at a better price point. You can use the money that you’ve made on your home up to 85%, and you can do what you want with the money.

But be wise since you have to make sure you can still afford your new mortgage payments. Yep, it ups your mortgage payment since you're borrowing against your home equity.

7. Credit Card Cash Advances

This is like the street corner bag, that you find on Canal Street, it's not really a designer handbag, but it can fool some people. Cash advances are like fake money, with a daily interest rate of over 27%. Yep, the second you withdraw that money, you will be paying big time.

So, if you borrow $100, you will pay $27 per day until the money is paid in full. Cheap knockoff.

8. Pawnshop Loan

I’m not going to lie, a pawnshop loan is not the worst thing, it’s the best way to get your hands on a small amount of cash fast. The interest is regulated by the state, and if you pay back the money on time, you can retrieve your item. It’s like a Coach bag, excellent price, and with good resale value.

I hope I've made the 8 types of loan more understandable, but if not please feel free to ask me any questions you might have ☺.

TTYL and by the way…Have a great day

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