Feeling The Pinch This Year Here Are Your Loan Options

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Thousands of UK families are due to experience trouble keeping up with their financial commitments on the run up to Christmas this year. Whilst some will have savings to draw upon, those less fortunate are likely to have no choice but to take out some form of loan. Though this route can seem a little intimidating, for the most part, it is becoming almost standard practice amongst the working classes. Owing money is never a good thing, but if it means you’ll keep above water over the holiday season, you have little option but to partake.

Cutting down on the cost of presents for the family could be a good first move. If you explain your current situation and the chances of you defaulting on your bills etc, I’m sure they’ll be very understanding. However, if this simply isn’t a viable option and you need cash quick, perhaps you might like to read through some of the information I’ve listed below. Don’t get me wrong, I’m no expert, but after a few weeks of extensive research for a friend in a similar situation, I feel I can now offer some good advice on the matter. So, pay close attention, and you should avoid making any silly mistakes when raising funds.

The Open-Ended Solutions

These are loans that can usually be increased:

●     Overdraft - Many people find that asking their bank for an overdraft or an extension on their current one can work out to be beneficial, especially if they’re able to pay the money back fairly quickly. On average, most banks charge around £18 per month when you take out an overdraft of £1000 - so the interest isn’t too shameful if you can settle the debt within only a couple of months.

●     Credit Card - This is probably the most common form of lending that takes place in the UK. Credit card companies will usually offer you amounts between £1,200 and £5000 when you first engage their service, and those with smart financial awareness can usually avoid paying any interest at all but constantly transferring the balance to other providers.

The Closed-Ended Solutions

These are loans that cannot be re-borrowed once they’ve been paid:

●     Bank Loan - Most banks will jump at the chance to put you in debt and charge a considerable amount of interest, so anyone with a good credit score should have no trouble raising anywhere in the region of £5000.

●     Logbook Loan - Reputable firms like Mobile Money now offer something called a logbook loan, which is basically lending based upon the value of your car. You get to keep hold of the vehicle whilst the repayments are ongoing, and the worst that can happen is you’ll lose it should you fail to meet your obligations.

●     Payday Loans - These are for people with bad credit history, as most payday companies will lend to almost anyone. All you need is some ID and proof of address, but just be careful to note the interest charges, as some are known to charge over 3000% APR.

So, now you’ve heard the lowdown, and you can see there are, in fact, many different options available to you, I hope you feel a little less stressed and a little more confident that you’ll make it through the cold months without too much hassle.

Good luck with finding the most suitable solution for you!

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