What are my other borrowing options?
By George McGonigal
Before taking out a personal loan you should always study what other options you have open to you to finance that purchase. If you have savings then it will definitely save you money to use the savings instead of paying interest on loans. Should using savings not be possible for you other forms of borrowing include the following.
Overdrafts. If you only need money for a relatively short period of time and only every now and again then you should consider an overdraft facility. Overdrafts are not recommended for medium and long term borrowing.
Credit Card. Credit Cards are another excellent form of short term lending. If you just need a bit of help from time too time then credit cards can be very handy and flexible. Most cards also offer cash back, 0% balance transfers for the first six months or low introductory rates.
The typically higher APR of credit cards once the “offer” period expires means that they are not as cost effective as personal loans beyond the short term.
Re-Mortgage. Another option for homeowners is re-mortgaging their homes to unlock the capital tied up in the property and with the significant growth in house values of the last few years most people do now have significant equity in their home.
Interest rates for this type of borrowing are normally low but it’s worth remembering that you could be paying off your mortgage well into your previously planned retirement.
George McGonigal
George is webmaster of an online personal loan resourcs website for UK borrowers. We bring under one roof lenders who offer online quotations to allow our visitors to compare rates in the comfort of their own homes. Why not visit us at UK Personal Loans Online: or our definitions page at Terminology Explained or our Useful Links Page.
Article Source: http://EzineArticles.com/?expert=George_McGonigal
No comments:
Post a Comment