Between credit cards, mortgages and student loans, the Great British public is collectively in debt to the tune of over 100s millions of pounds. If your personal finances are riddled with debt, you're likely pulling off quite a balancing act as you try to pay all the bills while still maintaining some quality of life.

https://www.youtube.com/watch?v=eHmgQ4HtbmI

Here's how personal loans could make life easier for you:

The Advantages Of A Personal Loan

Personal loans are much more flexible than other borrowing, particularly because they require no collateral. The terms are often far more appealing, too, especially if you have a good relationship with your local bank. For example, you don't need a specified purpose for borrowing, such as with a car loan. You can also access funds for a personal loan quicker than with other types, as processing is more expeditious.

For 5 great tips on helping to improve your chances of having your loan application approved, please follow the following article – 5 tips for getting your bank loan approved

Personal Loan Vs Using Your Credit Card

The average household in Great Britain owes more than £7,000 in credit card debt and using those cards is often too easy. The financial institutions behind credit cards earn money through the staggering interest people pay; many consumers wouldn't even be able to tell you exactly what they pay in interest and on what terms the rate fluctuates. Personal loans carry lower interest rates than credit cards, often by as much as four or five points. That adds up to significant savings for the borrower which is particularly important when they carry a lot of debt.

Borrowing For Home Improvement

You may have noticed how increasingly difficult it's becoming to obtain a home equity loan. Add to that the fact that home equity usually means interest only payments for the first few years of the loan and they lose a lot of consumer appeal. Personal loans, on the other hand, require no stated purpose and paying them off is much quicker (and less painful) than a home equity. The scenario of a personal loan for home improvement adds real equity to your home in a much shorter time.

Affording The Family Vacation

Despite debt, people still need to spend money, often in large quantities. Rather than simply accepting more credit card debt with the staggering APR, using a personal loan to finance the annual vacation keeps debt lower and allows for faster repayment. Such an arrangement will allow for greater relaxation on the much needed vacation.

Paying Unexpected Medical Bills

Life happens and it's usually quite expensive. Especially with confusing health insurance laws and outrageous monthly rates for family coverage, you may be caught in a serious financial bind if a medical emergency arises. Rather than face the extremes of bankruptcy and ruined credit, or worse, neglecting the major health issue, a low-interest personal loan can keep your household afloat.

Boosting Your Credit Score And Lowering Your Debt

Personal loans are considered higher risk than other forms of borrowing, thus, after you've paid the loan off, your credit score holds more clout. Using them to reduce debt, such as to pay off a high-interest credit card, makes sense all around. Formulate a specific plan to lower your debt and improve your credit profile simultaneously.

Strengthening Your Finances Through Controlled Spending

Most people have more control over spending than earnings, but don't realize it. Of course, you could always try to obtain another job or liquidate assets, but earnings power is limited by many things, whereas a lot of spending is completely voluntary. For example, that oh-so-good latte you grab every morning is costing you about £1,000 every year. Imagine eliminating the same amount of credit card debt instead, along with what you'd pay in interest - and that's just for a cup of coffee.

Treat your household finances like a business, holding yourself (and everyone else involved) accountable for every dollar spent and you will quickly discover a faster path to financial strength.

Consumers don't have many economic elements on their side. In fact, you could spend your entire life paying off the debt you incur. Take advantage of personal loans, one of the few tools that give you an advantage, and gain control over your own financial destiny.

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If you are looking to obtain a loan, whether for a home, vehicle or some other purchase, you will need to understand the various aspects involved in calculating your monthly payments. There are various reasons that you may need a fixed loan, and using a calculator can help to reduce some of the stress associated with acquiring a new loan.

Where Can You Find Loan Calculators?

There are several places on the Internet that you can find reliable loan calculators to use. The process with all of them is essentially the same. You enter in certain figures and the program will tell you how much your monthly payments will be under those guidelines. You will need to know how much the loan is for, the length of time allotted for repayment, and the interest rate that is being charged by the lender for the loan.

You can use one of these tools in order to compare the options that you have for loans. Your banker or other lender may have more than one choice available for you regarding a repayment plan. Using a calculator can assist you in determining which one allows you to get the loan paid as quickly as possible without compromising the rest of your financial health.

The Money Advice Service, a UK financial charity, offers some great advice regarding the use of loan calculators. To find out more, please click here.

Understanding Your Expenses

You also need to understand what additional monthly expenses you are likely to have regarding your loan. Depending upon where you live and what you are purchasing, you may have additional taxes that will have to be paid. There may be tax fees associated with the initial purchase plus ongoing ones related to ownership, such as property taxes in many places across the country.

Additionally, many lenders demand that borrowers maintain a certain level of insurance on the product the loan was given for. In the case of vehicles, they will generally demand that the amount of coverage will reimburse them entirely for the loan amount given for the car or truck. Homes and other pieces of property generally require insurance coverage as well that is not included in the loan calculator.

If you are interested in obtaining a loan and want to make sure that you understand how much your payments will be, you can use a loan calculator. Remember to account for additional expenses that you may incur along with the loan so that you are not surprised down the road by taxes or insurance premiums for the property.

If you would like another method of calculating loan repayments, the following video offers a slightly different take - https://www.youtube.com/watch?v=20ycC_GY56Y

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Payday loans have become a lifesaver for many especially in times of emergencies. Many people freak out when something comes up. They freak out and try to find ways to react, and sometimes end up putting themselves in worse situations than they were before. This is why it is important to know why you are getting the loan, and how you plan on repaying it.

Many people out there have a very negative view of payday loan. They say the interest rates are high and a person can easily get into trouble once they begin borrowing money that way. Both of these claims can be true, but not always the case. Just like everything else in life, if you choose to misuse what is normally good, then you will end up terming it as a bad option.

Channel 4 recently investigated payday loans and the video below outlines their findings –

https://www.youtube.com/watch?v=fj_pR_JRcoM

How Much More Expensive Are Payday Loans?

The first concern is on the interest rates of these loans compared to traditional loan rates. It is true that the rates might seem high, but if you take a closer look, you will realize why they are not that high.

When a person gets a £100 Payday Loan, it will cost him/her £20 to borrow it. One thing many critics don’t consider is the risk that comes with giving out the loan. They will say that Payday loans should be avoided on this basis.

Now, let's look at what happens when you take a car to your auto mechanic for repair. Let's say the part to be repaired costs £100 wholesale to the mechanic and the suggested retail price is £150, which he charges you. He would have made double what a lender is making within a few minutes or hours. He has no risk since you will go back again if the part fails. Payday lender has taken a bigger risk in money to people who would have been turned away by other lenders. This is the case in other businesses such as restaurants.

Don’t Fall Into The ‘Payday Loan Trap’

The second concern is the risk of getting deep into debt by borrowing against their future earnings. If you see a pair of shoes you like, would you use your credit card, or skip Starbucks in the morning and save the £5 per week until you raise the money. Many people use credit cards and they end up in debt. The only way you can avoid this is by spending less than what you earn, period.

The Daily Telegraph explored the concept of the payday loan trap in greater depth. Their take can be viewed via the following article - https://www.telegraph.co.uk/finance/personalfinance/money-saving-tips/9273169/Payday-loans-trapping-consumers-in-a-downward-spiral-of-debt.html

Unsecured are usually not for everyone. For people who cannot turn to traditional lenders, this is their best option.

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