Loans
Taking out a loan is a way of putting large purchases or ventures within
reach, such as a house, car, or home improvements. It would take the average
person a long time to save up enough money to pay for such things with
out the use of a loan. But before you rush out and get that loan you should
consider the different types of loans and how you're going to make repayments..
There are two types of loans;
• Secured - often called a homeowners loan as it requires
some sort of collateral for the loan to be taken out against.
• Unsecured - this type of loan does not require collateral, which
often results in higher rates of APR.
For either of these two loans APR can be charged at fixed or variable
rate.
Keeping up with repayments - you should be thinking about;
• Your income
•
Your current outgoings
• How you would manage if you were unable to work
•
Payment protection insurance
If you are sensible about the amount you can afford to pay back and have
taken all of these points into consideration before you take out a loan,
you shouldn’t have any problems. However, if you do run into difficulties
it is important that you contact your lender as soon as possible.
Other organisations which will offer advice and support include;
• Citizens Advice Bureau
• Community Debt Advice Centre - providing debt counselling and
a self help pack which can be downloaded.
•
Debt Advice Centre - a number of links to relevant organisations.
• National Debt Line, tel. 0800 808 4000 - a free and confidential
help and support service.
|
Finance
