Watching Your Borrowing #Loans

With our big push this year of clearing our debts, sometimes it isn’t all that clear what different types of finance is available to you so I thought I would quickly note down each type of lending with a few examples of how I would see me ever needing to use them.

Quick Loans – These types of loans are typically higher interest loans but usually available within minutes! I would use this in times of immediate issues, such as your wages not being paid into your bank on time (The employer after all should be liable for any costs incurred in my opinion) or an emergency bill that needs settling such as Car repairs.

Loans – Unsecured loans available over longer periods, usually takes a few days to arrange dependent on your credit score. I have used these for things such as purchasing windows or a car.

Credit Card – Can take up to ten days to go through. I have used credit card deals to my advantage over the years, using the introductory balance transfer offer to switch to zero percent interest for several months to years. Lately I have found that by doing this and fixing a payment amount to a figure above the minimum payment you will find the balance quickly nets down.

Store Credit – Like credit cards you can get some good deals the first time around. I have used store credit for things like Laptops or a sofa!

Mortgage – Secured loan over very long periods. Once you have a mortgage it is imperative that you keep on top of when your latest deal is up, in order to ensure you keep your monthly costs down and of course focus on paying more capital than interest. One thing I would suggest is that if you do make a saving on the new deal, keep the payments set at the old amount, meaning your mortgage will net down much quicker!

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