Saturday, January 25, 2014

50 Pound Loan - How to Borrow One - Credit Card or a Loan?

etermine the purpose of the loan
Before you borrow any money from anyone we recommend giving it a second thought, as a great majority of people cant cope with repayments, 50 pounds loans is relatively a small amount to borrow but still think twice before you do so.
Loan Term - get a credit card
How soon can you repay the loan back, for example if its a small amount and you can see a good chance of paying your money back within a year, then look for a Credit Card with 0% interest for the first year.
Borrowing for more than a year
In this case Credit Cards are of no help unless you consider paying hefty interest rates. Credit Cards turn out to be a lot more expensive when the payback is expected beyond 12 months.The basic difference is due to the compounding nature of interest applied on Credit Cards.
Borrow from friends or family
Its cheaper to get a deal from your friends and family but its advisable to sign a written contract with them.
Student Loan
Student loans are offered by many universities and banks with lower interest rates and longer payback periods.
Unsecured - Personal Loan
You can also get a personal loan and there are plenty of banks and finance companies in the UK offering it so you can have a good look around researching interest APR rates and terms periods.
Secured Loan - For Home Owners
If you own a home then you could also go for re-mortgage of your existing property which has a loan taken out and you could add this amount to the loan, but this should be considered the last option as it has a long interest repayment period, secondly the lenders will have a claim on your property if anything goes wrong.



1 comment:

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