Sunday, December 11, 2016
Get The Right Loan To Suit You
Money and financial woe can pile tonnes of stress on our lives when we really don’t need it to. Sometimes the best way to get out of a financial bind is by taking a loan. Yes, you may not want to and it could appear like the wrong thing to do, however if you’re careful you can use a loan to consolidate all of your debts so you know exactly what you owe and you owe it to one lender instead of multiple.
Standard Personal Loan (Fixed Rate)
Fixed rate loans are essentially a rate of interest on the amount you’ve borrowed which does not change or fluctuate. It means you pay the same amount every month so you know exactly where you are with your outgoings. The loan offers great security and the interest rates can be quite good depending on how much you borrow, usually upward of 1000 gets you better interest rates, but don’t let this bump you up above the amount you originally wanted to borrow.
These have extremely high interest rates and fees, so you should only use these if you’re desperate. They are also known as advancement loans, as they are an advance of your wages. There are some decent companies which can help you with structured settlement loans, and another benefit is that there is usually a great turn around time from application to money in your account, normally no longer than 24hrs. They can be great if you have an unexpected bill, such as car maintenance.
With a secured loan you can borrow higher amounts of capital secured against an asset such as your car or house. The interest is usually variable which means you can end up paying higher interest over the course of the duration. Also, if you cannot keep up with a payments you can lose whatever it was secured against. The benefit is that you can really reduce monthly payment by prolonging the loan from up to around thirty years, giving you a comfortable repayment rate, albeit for a long time.
Certainly a type of loan, using a credit card is essentially getting a loan to pay for certain items. Many people put things like holidays on their credit cards and pay them off over the year. They can be great interest rates with even 0% ones on offer, but they do usually go up after an initial period so bigger purchases should be made within this time frame. There are many different types of credit card with varying annual fees, so it really does pay to choose exactly the right card for you. They can also help you get a better credit rating if you use them properly.
These can be really useful types of loan, but make sure they’re planned, tell the bank you’d like one and they’ll arrange it for a far better fee than an unplanned overdraft. They can be more money saving than payday loans and allow you to choose however much you like, within reason, for the same fee. The trick is not getting to far into it, because then each month you’ll end up back in your overdraft and paying the fees, again, they’re a short term option. Again, you should shop around for the best overdraft rates, then you can find one with fairer rates or more suitable to your needs.