The
Loan Market Compared
With
so many outgoings and not as much coming in people are being stretched
financially and still have to find ways to pay for many items that they
need, including utility bills and monthly insurance cover to basic items
such as food.
One
longer-term solution that some people follow is to obtain a personal loan
and pay it off on a monthly basis. Depending on the deal you get this can
turn out to be a godsend or a burden.
Many
people now check sites like uSwitch
or The Motley Fool's loans
comparison site for tips on the suitable deals around at the moment.
If you don’t know something and you can’t find it on the site then ask
someone. Online this is just a case of visiting a discussion board that
most comprehensive sites provide.
Work
out how much you will be able to borrow by looking at how much you can
afford to pay back every month, while still having money left over just in
case. This way you will not get into difficulties and feel overstretched
again if some event comes about and you have to pay for some unexpected
cost.
Before
committing to any one loan or lender it is a good idea to check out one of
the many online loans calculators that are available; don’t worry they
are easy to use and with the competition between lenders you should find
one on most sites. Try this on as a start; the Natwest
Loans site has a loan calculator that requests an amount to be
borrowed and length of time to pay off the loan. The calculator will then
return the APR, total amount to be repaid and the amount that the borrower
should repay every month.
Remember
that is not definitive, the actual deal will depend on your situation, but
it is a quick and useful indicator of what you could expect and should
help you gauge whether you think you can afford it . You could then
compare that deal with another lender.
The
table below shows some of the typical loan rates for some of the big
lenders (figures are accurate at the time of writing):
|
Lender
|
Loan
Type
|
Typical
Rate
|
|
ASDA
Finance
|
Personal
Loans
|
Typical
6.9%
|
|
Natwest
|
Personal
Loans
|
Typical
6.9%
|
|
RBS
|
Personal
Loans
|
Typical
6.9%
|
|
Alliance
& Leicester
|
Personal
Loans
|
Typical
6.5%
|
|
Moneyback
Bank
|
Personal
Loans
|
Typical
6.3%
|
If
you get into trouble keeping up with payments don’t waste time and let
your loan company know as soon as possible, keep in mind that if you do
waste time the consequences on your future borrowing and credit record can
be severe. Get in touch as soon as possible and renegotiate a payment
plan.
Whichever
ways you decide to gain extra funds make sure that you do plenty of
research and stick to the figures you decide on.
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