Payday loans is a term that many people are familiar with; however, a large amount of those same people are not one hundred percent sure about what they are, or the advantages that they are able to offer to those who make use of them. Put simply, payday loans are a great way to help those people who are finding that their salary is not quite stretching as far as they would like it to towards the end of the month; payday loans are essentially a small advance on a person’s salary, which enables them to ‘fill the void’ that can be created by a shortage of money towards the end of a working month.

Payday loans are sometime also referred to as a payday advance, or even a payday advance loan. Whatever you choose to call them, payday loans enable people to ‘get back on their feet’, thanks to a quick and simple solution to their short term credit needs. Typically, this solution will arrive in the form of a short term cash loan, which is usually paid directly into the recipients bank account once the amount and loan duration has been agreed upon; this gives people who are making use of payday loans the reassurance that their specific needs are being met in both a quick and direct manner.

The majority of payday loans providers ensure that they are sending out their payday loan requests at regular intervals; this means that is usually a negligible waiting period, so those customers who take advantage of a payday loan will be sure to get the cash they as soon as possible.

Personal car loans can get you up to £25, 000 towards your new car, and because they’re unsecured you have to offer your home as collateral. Also, the interest rates are usually lower than those offered at the car dealerships in their payment plan. However, you need excellent (or good at the very least) on your credit report to obtain this kind of loan and the repayment period is only 1-5 years.

Instead of this you could go for a secured car loan instead. This gives you a greater chance of being accepted for the loan than a personal loan as you have collateral to offer and, depending on the value of your home, you can borrow up to £100,000 which you can pay back in 5-25 years with a much lower rate than personal loans. This is also easier to get if you have a bad credit history. However, all though it is easier to obtain it may take longer to actually get than a personal loan and you do have to be a homeowner to obtain one.

Some lenders will want to know which car it is you’re buying before they give you the loan, and all car dealerships will want you to have money or financial security before you actually buy. Generally you don’t need more than £25,000 for a car loan, making a personal loan the more popular choice when it comes to this kind of loan- though you do need a strong credit rating. Shop around and ask the dealership you’re buying from and your bank for advice on which would be the best course of action for you so you’re borrowing the right sort of amount for the car you want.
IVA assistance

An IVA is an Individual voluntary agreement to help you make reduced monthly payments to the places you owe money to so you can pay off a percentage of your debt so you don’t end up bankrupt. An IVA is usually set up for 5 years, after which the debt is classed as settled and any extra charges become frozen and it’s illegal for creditors to demand the extra money from you. Because of the legal technicalities of this, it must be set up by a licensed insolvency practitioner and the creditor must agree to it. Once the payment period is over in some cases up to 75% of your debt can be wrote off.

The main advantage of an IVA is getting your debts reduced and protecting you from bankruptcy. It ensures your home and job are protected and because you’re not bankrupt you aren’t given limitations on things like personal credit and mortgage applications. Plus, as a bonus for the creditors it’s actually cheaper for them than the costs for bankruptcy.

However, there are a few disadvantages. You can only have an IVA if your debts are over £15,000 and, unless stated, your house and any other security could be at risk if you break the agreed contract. So, if you don’t comply with the agreements your creditor could take further action and you could well end up bankrupt.

You have to remember that the payment will be worked out on what you’re earning and what you can afford each month and any extra you get will have to put into your repayment plan and not use for personal spending. This means you’ll have to make a lot of cut backs during your repayment time and be as upfront as possible with your creditor regarding your finances. Illness or redundancy will be taken into account by your creditors and a break can be arranged if this happens to give you time to get back before you’re back to repaying. This will affect your credit rating but once it is paid off it will be wiped from your record, though it will take around 12 months for you to rebuild your credit rating to its previous status.

Hundreds of places offer good, cheap debt consolidation loans to help you get back on track with your repayments and make the whole process seem a lot less daunting that your monthly bill makes it seem.

So how can a debt consolidation loan actually help you? For starters it lets you combine all your repayments and put your debt into one big payment plan that is then split into manageable monthly chunks for you to repay. This means you’ll be paying back for a long time, but it’s payments you can manage. This also protects your credit history from getting negative marks and can reduce the amount of interest you’re paying and you have the peace of mind knowing that you won’t be being chased by several creditors at a time.

You can get different types of debt consolidation loans one of which is a personal, unsecured loan which can range from £1000 to £25,000 and is ideal if you have no property to offer as collateral. However, if you do, you can go for a secured debt consolidation loan where you can borrow up to £100,000 to help you manage your debts and because you have a long payment period of up to 25 years you know you’ll have monthly payments you can comfortably manage. Also, because your home is used as security, you have a much better chance of securing the loan you need.

Although to some it might seem unwise to borrow more money to help fend off the creditors for the money you’ve already borrowed, but this way you can pay off those debts and just have one creditor to be sending your repayments to- and the interest is much lower. Always get advice if you are unsure, though, and if you feel like your repayments are getting out of control go to get help and advice as soon as possible.

Always consider what you’re looking for in a loan, and consider if you’re a home owner or a tenant. Cheap loans generally come with a low APR, though it’s recommended to look for more than just that when you’re shopping around. Think about the other fees involved like admin fees or early redemption penalties- also consider if you want a fixed or variable rate for paying back your loan to determine whether the interest will stay the same or change.

With a cheap personal loan you aren’t putting anything up as collateral and as such your credit score will determine how likely you are to be approved. You will find some banks won’t lend if you have a bad credit rating, but others might do. Plus, always bear in mind the extra fees you may have to pay like payment protection insurance (PPI) and what the lender’s rates are.

In terms of secured loans you can offer your house up as collateral and have a much better chance of securing a loan this way. The interest rate will depend on your credit rating, however, so just your house isn’t enough and your credit history will be rated against your income and employment status. Always research the processing and admin fees you may have to pay and any extra insurance or penalties. As always, make sure you know you can repay the loan you borrow because in a secured loan it’s your house that’s offered up as collateral. Payment protection insurance can be useful here, however, to protect you and your home if, for whatever reason, you become unable to repay what you borrowed.

As with any loan you should always make sure you’ve done your homework before you buy and know exactly what it is you’re buying.

Because your home will increase in value over time this makes it the ideal asset for securing a loan and because of this a homeowner loan is a lot easier to obtain than a normal secured loan where anything can be offered up as security- ultimately, houses are where the top value is.

The bulk of homeowner loans can be between £500 and £100,000 but some can even offer up to £250,000 if they value your house high enough. Your credit history will feature heavily in deciding what APR you receive and your over all loan will be based on the APR and the amount you can borrow. Your credit will be scored on your recent activity and the lender will decide whether you fit into the category of Excellent, Good or Adverse credit to determine whether or not you can have a loan.

Like many loans, a homeowner loan can be used for a whole host of reason. To put multiple debts into one place to make payments easier, to pay for home improvements or extensions, for buying a new car and even for helping finance your child’s university fees and living costs. Because the loan is against your house you need to ensure you pay the repayments on time and that they are easily manageable for you to easily repay on time without you having to panic or run into financial trouble- remember to take interest and payments for extras into consideration when planning your budget and check the rate is right for you. Rates can be between 5% and 30% and finding a good deal can be a little overwhelming- but shop around to find the best policy. Lots of comparison sites are here to help you, and researching you loan properly will ensure that it’s right for you and there’s no risk to you and your home.

Typical reasons for a secured loan are wanting to consolidate large debts into more manageable payments, paying for home improvements, buying a new car and even for help paying for a holiday. The interest rates generally offered on these types of loan can range from between 6% and 14%- this is because it is secured against a major asset of yours, so the interest rate is cheaper. Payment can be spread over a long period of time into small payments and loans can be between £5000 and £100,000 and are rapidly becoming more popular.

Because of the rise in growth of property value over the years, borrowers have far more power in what they can borrow because the value of their property is higher. The equity is the current value of your property with any outstanding mortgage payments or loans taken away from this value. Because there are so many companies you can go to it’s important to shop around to find the best deal for you and to discuss what your situation is and how best you can re-pay the loan.

Even if you have a bad credit rating, if you’re a home owner you can go to certain lenders to secure a loan getting help finding the right loan for you and also giving you information with how to manage your repayments. Although it is time consuming to research all the different types of loans, this will help you greatly in the long run and can really pay off when you find the right lender for you to give you the product you want and the support you need. Always make sure you understand exactly what you’re getting into and understand the terms and conditions completely before agreeing to anything. If you’re unsure always ask for advice or help from a financial advisor to make sure you’re getting the right deal. Remember, your house or car is secured against this loan, so you need to make sure it’s something you can definitely afford to pay back or you may end up losing your home.

You can get a personal loan for many reasons, including helping you deal with small debts, buying a new car, doing improvements on your home, and even in the form of a student loan to pay for education costs for accommodation and books for study. Always remember never to borrow what you can’t pay back later.

A personal loan can be anything between £500 and £25,00 and it’s worth taking into account that the more you do borrow the more you’ll end up paying in interest later in life when you’re paying it back. The best thing to do to avoid lots of interest is to take the minimum amount and pay it back in as short a time as possible to avoid the amount you’re paying back growing considerably. Like a credit card the loan is based on whatever APR the lender charges, but the monthly payments stay the same each month- but the interest can change as time goes on. Remember that because the loan is unsecured, the interest rate is higher than a normal loan due to the risk because there is nothing offered as collateral.

You will have to go through a very thorough credit check when applying for a loan to determine whether or not it’s the right course for you and credit check you have will go on your credit rating and can be viewed by future credit checkers. This will be quiet straight forward if you have no past issues with credit, though it is better to only apply to one lender at a time otherwise it will make you look unstable on your credit rating and affect the final decision.

Always shop around to get the best sort of deal and make sure you’ve done your research before applying for your loan. It’s also worth working out exactly how much you can afford to pay back each month and how much this will affect your lifestyle- always take into account that you will be paying interest on this loan.

This monthly payment plan is worked out based on your income and your living expenses and once it has been calculated how much you need to pay for food, mortgage and any other essential bills they will budget your disposable income to work out how much you’ll pay to the creditors. This is split between all the creditors you owe to and these payments continue until the debt is paid off, or until you feel you can manage to pay the debts on your own without help.

You can only use a debt management scheme on personal, unsecured loans (but not credit cards or store cards etc…) and you cannot have a plan arranged for secured loans as any missed payments on these can lead to repossession- this means you should always prioritise secured loans over any other.

The advantages of this plan is that the management company will pay on your behalf and freeze any interest and late payment charges to stop the debt increasing and is worked out based on what you can actually afford- meaning you can still afford living expenses. Plus, it’s less stress for you as you don’t have to deal with creditors yourself.

However, a debt management plan is not legally binding and lower payments mean it takes longer to pay off your over all debt and if your situation improves you will be paying more to help complete it sooner. Plus, it will affect your credit rating one way or another and be on your credit file.

A lot of companies offer free services to set you up, so avoid those who charge you as this can be anything between 15 and 17% and the Citizens Advice Bureau will give you free advice on your options in relation to debt management.