Personal Loans

How Do I Repay my Personal Loans?

When you are considering taking out a loan, it is a good idea to think about the repayment. This might sound a bit boring, but it is really important to make sure that you will be able to repay it so that you can know that you will manage. Therefore, there are a few steps that you should take before taking out the loan to check that you will be able to do this,

Calculate how much the Repayments Will be

To start with you need to work out how much the repayments will be. You need to find out from the lenders exactly how much you will be expected to repay and when. Do not try to guess this amount, get a precise figure because it is really important that you have exactly the right figures. You may be able to work it out using a calculator on the website of the lender too. Find out when you have to make the repayments as well as this is just as important.

Work out How Much Money you Have to Pay

Now you need to work out how much money you have available to pay. Look back at your bank statements and work out how much money you tend to get in each month and how much you pay out. Consider the day that you will need to repay the loan and whether you feel that you will have enough money on that day to repay the loan. Think about what other payments come out on that day. Also consider all of the other things that you will need to buy and whether you will have enough money to be able to afford them all. It is a good idea to separate your expenses into essentials and luxuries because you may be able to cut down on some spending in order to afford the payments. However, you will need to commit to doing this.

If it is Not Enough Decide What to do

If you do not have enough money to cover the repayments then you have a few choices. You could just forget the loan entirely. However, it is likely that you will not want to do this. Therefore, you could consider ways to make it more affordable, As suggested before you could cut back on your spending on luxury products. You could also compare prices on all of the things that you buy to make sure that you are not overpaying for anything. You could also think about whether it might be possible for you to earn a bit of extra money to help out. Perhaps sell things you own and no longer need, do some more hours in your job, take on some freelance work, do some online work or something like this. There are a lot of possibilities that you can consider.

Have a Backup Plan

It is really wise to have a back up plan as well. You need to consider what might happen if things do not quite work out and you have less money than you had imagined. You may need to find ways to spend even less or to earn even more. IT is good to have a list of ideas that you can work through so that you know that you will be able to cope even if you are in this situation. Even if you are confident that you will be able to repay the loan, it can be reassuring to have  aback up plan like this as you will have peace of mind then, knowing that there will be a solution.

Personal Loans

How do I Pick the Right Personal Loan?

There are lots of personal loans available for us to choose form, so it can feel rather daunting and be rather confusing knowing which one to choose. There are likely to be quite a few differences between the different types of loans and so it is good idea to know what those differences are and then you will be able to compare them and figure out which will be the best one for you.

Interest Rate

Many people will compare the interest rates of loans to try to figure out which will be the best for them. However, this might not be the vest way to do it. This is because some loans will have fixed fees as well as interest so the interest rate will not represent the full cost. Also, there are two ways of reporting interest rates. Ones is the APR which is the Annual Percentage Rate and the other is the AER which is the Annual Equivalent Rate which will include any fees and charges in it. Therefore, it may be better to find an alternative way to compare the costs of the loan than this.

Total Cost

It can be a good idea to think about the total cost of the loan then rather than comparing just the interest rate. You may find that the lender will have a calculator on their website whether you will be able to work this out. However, if you are not sure how to use it, you can always ask the lender directly and they should be able to tell you themselves.

Repayments

It is always important to make sure that you look into how much the repayments are. You need to think about whether you will be able to afford them, Find out form the lender what you will be repaying and then look at your personal financial situation to see whether that is something that you will be able to afford. IT is easy to think that you will be able to work it out in your head, but it is much better to write down all the figures. Note down how much you will be getting in each month and how much you normally pay out and then you will be able to calculate whether you will be able to afford the repayment as well as everything else that you need to pay.

Lender

It can also be good to do some research into the lender and what they are like. Some people want to use one that they have heard of but it is a good idea to think about whether this is a good idea as the reason you may have heard of them might be because there was a negative newspaper article about them or because they pay for advertising and neither reason is a good one to use them. You need to think about whether the lender is one that you will trust, perhaps by looking at reviews or talking to other people and see who they would recommend. Make sure that you think about what is important to you in a lender and then match this up with what the reviews and others are saying so that you know whether they match up or not. It is wise to take a look at the lenders websites so that you can get an idea of what they are like from there as well. Some people feel that the customer service is the most important thing to look at. This can be wise as if you need to contact them about anything, then you will hope that they will be helpful and polite. Therefore, it can be a good idea to contact them yourself and see what sort of response you get and that will allow you to be the judge.

Travel

Should I Use Short Term Loans to Pay for a Holiday?

There are many different reasons why you might consider getting out a short term loan and paying for a holiday is one of them. Having a holiday can be a really important thing for some people to do. It can get them away form work, closer to their family, exploring new places and things like this. There are many people that go on lots of holidays and some people that go less often. It is something that can be quite personal. However, if you are planning a holiday you might be thinking about how to pay for it. Borrowing money is one option, but it is a good idea to think bout it carefully so that you can decide whether it is the best option available to you.

Cost

There is a cost with all borrowing, we all know that. If you want a loan then the lender will charge you money. This charge will vary between lenders and so you need to think about the cost that the holiday will be with the lender that you are considering. Of course, with all loan types there are different lenders that will offer to lend you money. You will need to compare them to find the one that you feel will offer you the best value for money. It is a good idea to carefully look at the cost of different types of loans as well as different lenders. With short-term loan the cost will tend to include interest and some fees, so do not just compare interest rates but work out the full cost. You should be able to calculate how much you will need to repay in full on the lenders website or you can get in touch with the lender directly and ask them. Once you know how much the loan will cost you, you will be able to decide whether you think that it is worth it. Think about the fact that you will be paying this amount of money on top of the cost of your holiday and whether you still feel that it will be worth it.

Repaying

It is also worth making sure that you are confident that you will be able to repay the loan. Short term loans will generally require a lump sum repayment which has to be made on the next day that you are paid. You will need to consider whether this is something that you will be able to manage. It is a good idea to find out what sort of amount you will be expected to repay and then work out whether you will be able to afford it by looking at your past bank statements and thinking about what you normally have to pay for. Consider not just whether you will be able to cover that repayment but also whether you will be able to afford everything else that you need as well. Some short term loans may allow payments in instalments and these will be easier to manage but will usually be more expensive and will of course last longer. You will need to decide if this will work out better for you.

Alternatives

You also need to think about what other options you might have. Perhaps you have some savings or you have the time to save up the money. This may mean postponing the holiday but that could work out for you. It could be that you have other loans you could choose between as well. It is good to think it all through so that you get the very best solution for you.

Short Term Loans

Are Payday Loan or Instalment Loans the Best Short Term Loans?

There are several different short term loans that are available. The two main ones are payday loans and instalment loans. You may have heard of payday loans and may not have heard of instalment loans. However, they do have some similarities. You can borrow small amounts of money and do not need to have a good credit rating in order to borrow the money. They are usually arranged quickly and you can borrow up to £1,000 There are some big differences between them as well and it is good to know what these are so that you can work out which will be the best option for you.

Repayment

With a payday loan you will have to repay everything that you borrowed plus the interest and the fees in one go, on the next day that you get paid. This means that you will have to find all of the money that you need to be able to do this and make sure that it is paid. If you are paid on that day, then hopefully you will have enough money available to do it. However, you will need to check, not only that the pay will be enough but also that you will have enough after any direct debits of standing orders go out on that day. You also have to consider that you will other things that you will need to buy as well and you need to try to ensure that you have enough for this as well.

With the instalment loan, the repayment will not be in one lump sum but it will be spread across a number of months. This means that you may find it easier to repay. You will not have to repay such a large amount of money each month which means that you will more likely to have money left over to cover the cost of other things that you will need to pay for as well.

Term

A payday loan such as those offered by Emu.co.uk will only last a few weeks. This is because it will need to be repaid in fill when you next get paid. You could even find that you will only have it for a few days. This can be extremely useful for anyone that is keen to not have a loan for very long. Some people are stressed by borrowing and having a loan so it will be particularly useful for them.

With an instalment loan the term will be longer. It will be determined by the amount of time that you take to repay. It could be that you will have a few months to repay or maybe longer. This might be due to how much you borrow as well as what the lender decides you will need to do. Although this will mean that the loan will last longer, it will also mean that you will be able to manage the repayments more easily. Rather than trying to repay a large lump sum, you will have less to repay and this means that you will have more money available for other things, such as other bills or food.

Cost

The cost of all loans will vary as lenders will charge different amounts. Therefore, it is not easy to say which if the loans will be cheaper. However, as you will take longer to repay the instalment loan, it is likely that it will be more expensive. This is because you pay interest for every day that you owe money and this loan will last longer, so have interest charged for longer. It is therefore likely that the instalment loan will be dearer but you might think that it will be worth it if it means that you will be able to manage the repayments more easily.

No Credit Check

When Should I Use No Credit Check Loans?

There are some loans which have a specific purpose and some that are more general. There are also certain times when we should be borrowing in a certain way and other times when other types of borrowing are better. It may even be that there are certain times when we should not be borrowing anything at all. It is good to explore this further with regards to no credit check loans and then you will know whether they will be right for you to use.

What no Credit Check Loans are for

No credit check lenders do not specify what their customers should spend money on which means that there is no limit where they are concerned. However, they tend to lend smaller amounts of money and this means that you might be restricted in what you can buy with the money that you borrow as you will only be able to afford cheaper items. The lenders tend to lend up to £1,000 but it could be less as it will be up to the lender to decide how much they will let you have. If you are a first time borrower, they may only lend you a small amount and if you repay that on time, they will then be willing to lend you more money.

When to use no Credit Check Loans

These loans were set up to help those with a poor credit score who could not borrow elsewhere. So, if you do not have a good credit record, you could find that the loans are the only ones that you will be able to use. You will also find that these loans are normally very quick to arrange. Some lenders can provide funding within a few hours and other may provide money outside of normal banking hours. All of these things mean that it is a useful loan to take out if you have a poor credit record and have no other options or if you need money really quickly. It is a good idea to check with the lender though, if you need the money really quickly, to make sure that they can provide it at the speed that you require it.

With all loans it is a good idea to compare different loans types to see which suits your needs the best. If you decide that a no credit check loan will work for you then compare the different lenders to see which will offer you the best value for money. Think about the cost that each is charging as well as finding out how much the repayments will be and whether you will be able to afford them.

When to Borrow

It is also wise before you borrow any money, to consider whether it is the right thing for you to do. There are a few different things that you should think about. You should think about whether the item that you are buying is something that you really need or whether you can delay buying it for a while and whether you can justify buying it with a loan. Think about the cost of the loan and whether you are still happy buying that item even though you are spending that extra money for it that you have to pay for the loan. If the item is a luxury item and you can manage without it, then it is better to wait and save up for it rather than borrowing the money and having to pay extra for it compared to paying for it without extra costs if you save up first.