How to Pick a Fair Lender

When you are choosing a lender it is likely that you will mainly be comparing on price. Although this is a really good idea, as you could end up paying a lot more for a loan if you go with an expensive lender, there are other factors that you should look into too.

It is good to look for a lender that has fair charges, for example. Most lenders will charge fees for setting up the loan, fees if you miss a payment and fees if you want to pay the loan off early. It is worth comparing these anyway as you will have to pay the set up fee if you go with them and it is hard to know whether you might miss a repayment or want to pay the loan off early. It also gives you an idea of how flexible they might be too.

It can be good to find out whether they might be flexible if you are in the situation where you cannot make a repayment. Try to find out what their procedure is and whether they can delay payments or allow you to repay less if you get into financial difficulties. It can be worth telephoning their customer services or look at reviews of the lender to get an idea about this. It can take time to do this research but it could be really important. By talking to their customer services, you will also get an idea about the general feel of the company. You can ask questions and find out how helpful they are and find out all about things which may not be so obvious in the basic details of their paperwork. Find out what happens if you are unwell and cannot work, miss a payment or are struggling and want to pay less each month and increase the term of the loan. Knowing if they are flexible or not can be really important, it can give you peace of mind when you are choosing a lender to know whether they have your best interests at heart or not.

It can also be good to know how fair they are on interest rates. When rates go up, lenders are usually in a big hurry to put their rates up as well. However, when rates go down, they tend not to put theirs down so quickly. Therefore it can be good to try to find out what the lender that you are considering is likely to do. You could try asking them, but it is unlikely that the customer services team will know, however you may find out more online. This could be information that you may be able to find out if you look online though. If you look at reviews of lenders, perhaps on money message boards or even ask in chat rooms to find out peoples experiences. You may even be able to find some statistics on this sort of thing if you look hard enough. It could also be a good question for a financial advisor if you choose to use one.

It can be best to compare places on price first and then take a look at all of their details in more detail and find out a bit more about them. You may already know the lender, but you may find that you know nothing about them. As well as reading their website and online reviews it can be a good idea to find out from your friends and family what they think about the lender that you are considering as well. They may have used them and know what they are like to deal with on a personal basis and this can be really useful information. It is great to ask family and friends as they have no reason to be biased when they tell you things. They will let you know about any of their dealings with various lenders and make recommendations perhaps and tell you who to avoid.

It is worth gathering a lot of information, particularly if you are getting a long term loan. It could save you a lot of money and stress if you make the right choice. You will want to make sure that you make the right choice after doing a lot of research and then even if it turns out that there were better options, at least you know that you worked your best to make the correct decision. It may seem like a lot of hard work, but if you are taking out a long term loan, it will be expensive and you will want to make sure that you are getting good value for money. If you struggle with it at all, you want the peace of mind that your lender will look after you and help you to manage those repayments.

Home Improvements

Should you Borrow Money to Have Work Done on Your Home?

Whether you should borrow money or not should be a decision that you think hard about. It can be too easy these days, to just borrow money for all sorts of things without taking the time to decide whether it is the best thing for you to do. There are many factors that you should think about before you make the decision.

Firstly you need to consider whether the work is necessary or not. The work could be a repair to something causing structural problems or a leaky roof or a broken pipe. Things like this will cause more damage if they are not repaired and so it is important to get them fixed as quickly as possible. Delaying could mean that the fix will be a lot more expensive in the future. If you do not have enough money to pay for it then you will need to consider borrowing the money instead as there may not be enough time to save up. Although paying for the fix with a loan will be more expensive than waiting to save up, if you do wait the repair could be dearer and you could be taking big risks with regards to the damage done to your home.

If you are looking for some work to be done that is not so necessary then you will need to think a lot more carefully about whether to borrow the money. This is because you could delay having the work done as it is not causing damage to your home and therefore waiting will not cause any harm. It depends on what type of work you are thinking of having done. It is worth getting some quotes for the work and then thinking about whether you can afford to have it done or not. This will depend on how much it will cost and whether you have any savings put by which you can use to pay for it. It may be tempting to borrow money even if you have savings to pay for it because you will not lose those savings. This is a very expensive way to go about things though and you will be able to save up again in the future and you will have more money in the long run, rather than borrowing money and paying the costs of the loan.

If you do not have savings then you are in a situation where you need to choose between getting a loan and having the work done now or saving up for the job and waiting to have it done. You need to find out how much the loan repayments will be and calculate whether you can afford to pay this each month. If you cannot, then you will need to delay having the work done and save as much as you can instead until you have enough to pay for the whole job or to pay towards it so that you can borrow less and have lower repayments.

It can be difficult waiting for work to be done. You may have decided exactly what you want doing, perhaps extending to create extra space, refurbishing rooms to modernise and give you more storage or just decorating to make everything cleaner and brighter. It can be difficult looking at your home and thinking about how it could be improved if only you had the money. However, there is a huge element of satisfaction in knowing that you have saved up to have some work done and paid for it without having to borrow; knowing that you have worked hard to do that and that you have not paid more than needed due to loan costs. Depending on how much spare money you have each month, it could take a short time or a long time for you to save up.

It can be wise to think about ways that you can spend less money or earn more, so that you have more money available to save so that you can get the work done more quickly. There may be places that you can cut back and you can decide that you will not buy more than is necessary until you have saved up. It could be hard work, especially if you are working more hours in order to make even more money. However, it can mean that you will be a lot freer without a debt hanging over you and repayments to have to make each month. Rather than paying hat is demanded, you can save at your own pace and if you need extra money one month, you can save less. With a loan repayment, you will be expected to make it regardless of whether you have less money that month or not.

So whether you borrow money does depend very much on you, whether you can wait for the work to be done, whether you can save up and if you think that it is worth paying extra to have the work completed more quickly.


What to do if you have Difficulties Making Loan Repayments

It is essential to make the repayments on your loan on time. This is because if you do not manage to do so, you will have extra fees to pay which will be added to the loan and make it even harder to make the repayments. This is why it is really important to consider whether getting a loan is the right thing to do before you get one out. If you think that there is a risk that you will struggle with the repayments, then it is a really wise idea to borrow less, pay it back over a longer term so the repayments are smaller or not take out the loan at all.

Often it can be too late when you realise the loan is too expensive and you have already taken it out. Then you will need to think of some things quickly that will help you to cope. Try not to panic as there could be quite a few solutions available to you and the more you worry, the harder it will be for you to think clearly and figure things out.

To start with you should think about whether there are any ways that you can have some extra money. Consider whether you can get more money in your current job, perhaps by asking for a rise or by working extra hours. If you cannot then consider whether getting an additional job could help, perhaps evenings and weekends doing some freelance work. There is quite a lot available, you can look online and although it may not always pay a lot, it can all help to boost your income. You may also be able to sell some of the things that you have to get some extra money. Although not as good as an increase in regular income, it could help to keep you going for a while.

Whether you can earn more or not, it is wise to take a look at what you are spending and see whether you can reduce it. You may be able to switch suppliers/brands/shops in order to spend less on your regular purchases. It could also be wise to think carefully about every item that you buy to think whether it is necessary for you to buy it. Obviously there are certain things that we need to pay for, such as taxes, rent, utilities and food but we buy a lot more things than this. We tend to pay for mobile phones, tv packages, clothing, alcohol, going out, home d├ęcor and all sorts of other things. Although it is nice to have these things, they are not necessary and so you could consider cutting own on the amount that you are spending on them. You may be able to change the place that you buy them from and find that you do not notice much of a difference apart form the price and you will have more money available to pay your loan repayments with.

It can be worth setting up your payments so that they leave your bank account as soon as you are paid. Then you will be sure that you will have enough money there to cover them. Of course, you will then need to make sure that you budget with the rest of your money so that you have enough to spend on essentials for the rest of the month.
This can work as long as you have a good income and can reduce your spending. However, if your income is low and you do not have a way of increasing it and you already spend very little, it can be much more difficult to manage. If you are in this situation then it is worth phoning your lender. Chat to them about the fact that you are struggling and find out whether they can help you by lowering your repayments. It will mean that you will have to keep making them for longer, they will charge you more, but if it means that you will be able to manage every payment and cope with paying your other expenses as well, it can be worth it.

You could get financial advice as well. It is possible to get debt help for free and so find out where you can get this locally. You will find that the debt counsellors will not judge you and they wil be able to make helpful suggestions which you may not have thought of. When you are panicking it is easy to miss even the most simple of solutions and they will be able to calmly and kindly run things through with you. This could help you to just clarify your situation in your mind and help you to come up with a useful and practical solution. There are solutions out there, but you just have to find them.