debt in the United Kingdom from credit card balances, car loans,
overdrafts, etc., have so far claimed over £4,000 per
individual. Correspondingly, the number of personal finance
companies has increased and each claims to offer a better deal
in terms of interest rates and more flexible terms of repayment.
The increased competition has given borrowers a better choice
so they shop around for more suitable terms of repayment and
a competitive interest rate. Whether it is to get around a
temporary cash crunch or to tide over a financial crisis, one
has many options and the financing companies are simply eager
to be of service. We list below some types of loans to assist
you in choosing a suitable one.
of Loans :
Car Loan – Car loan, which
is taken out to buy a car, can be obtained from
your car dealer, but one can’t assure you’ll
get the best deal. Other options are: you can
either go for straight loan/ hire purchase or
Personal Contact Purchase (PCP). In a straight
loan/hire purchase, you can’t own the car
unless you’ve paid the loan. On the other
hand, in PCP you can walk away with your car
after paying upfront the amount which can be
followed by monthly payments and closing amount.
Loan - Selling your home and buying a new one isn’t
an easy task. If your timing isn’t right you may have
to pay for the new house even before you sell the old one.
At this point you can apply for Bridging Loan. This scheme
will help you borrow money for a short term and repay the
amount borrowed along with the interest once you sell your
Loan - Making your monthly payments on your debts
can be an asking task if you’ve a few credit cards
and some personal loans in addition to your mortgage. Debt
Consolidation loan lets you borrow enough money to pay-off
all your current debts, excluding your mortgages. You get
a smaller interest rate and thereby it reduces your monthly
payments. However, you should ensure whether you can afford
this new payment, as consolidation loans are secured on your
Loans - If you’re renting accommodation, you’ll
not be able to borrow money secured on your home. In such
case Tenant loan helps you to borrow money in absence of
security on the loan. However, you’ll have to propitiate
the lack of security on the loans with higher interest rates.
Loan - Bank loan is available from the banks and
the loan money received helps it to pay the interest on the
savings and deposits of its customers. It’s the difference
between the interest they pay out and the interest they charge
which helps them make money.