There are many types of loans that are available.
Borrowing is usually an easy thing to do as many financial companies wish to lend to individuals. However, it is not just brokers and financial institutions that lend. There are also places like zopa.com where people can lend to other people. Always approach your bank first if you are in need of a loan. They are probably best placed to judge whether you can afford a loan. If they are not willing to lend to you, it might indicate that a loan is not what you need as you may have difficulty in servicing it. Never borrow from friends or family. It will always be an issue between you until it is re-paid, and it will be more of an issue if you ever struggle to repay the loan.
Many people take out loans in order to pay off other loans. This is not always the best idea. If you are having difficulty servicing your current loans, you should speak to us at Cleardebts.co.uk
. Maybe we can stop the interest from building up and up and arrange with the people that you owe money to take payments from you that you can afford.
If you are interested in a loan then there are many choices, and there are, of course, infinite things that you can do with the extra money. Some of the most popular types of loans are as follows. You can read more about them in the sections in the left-hand menu.
- Equity Release – If the value of your house is higher than the amount of money outstanding on your mortgage, you have ‘equity’ in your property. This can be used, sometimes, to borrow against.
Crisis Loan – The UK government, through JobCentrePlus, does give people small interest free loans. You have to have some kind of crisis or emergency (such as you need rent and are about to be evicted) and there is no one else that will lend to you.
Bridging Loan – When you need money for a short period of time, like for example when you are buying a house before the sale of another house has gone through, you may want a bridging loan.
PayDay Loans – Some companies will give you cash, the same day, usually up to £1,000. This then has to be repaid when you next get paid. So it is for a very short period of time, but it can help people for a few days.
Whenever getting a loan it is always important to understand the interest you are being charged. Look at the ‘APR expalined
’ section of this website if you are unsure.