tag:blogger.com,1999:blog-77421703976783825702024-02-19T07:15:27.978-08:00Short Term Loan WatchdogLearn more about short term loansAnonymoushttp://www.blogger.com/profile/18035781882001344963noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-7742170397678382570.post-41263884190636357262015-01-29T07:22:00.003-08:002015-01-29T09:02:33.273-08:00When You Should Not Take Out A Loan Against Your CarThe problem when you search online for information about a product or service is that you will invariably find a lot of sales information.<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj3lu_6PdvFvoxi3eKB9fUzdwvTpXiE7Kamy0i61xRC37QJJJ_rbRsAXaWN0eXqIK6fT5ANbKsVZu7SwTlpglsIQAIy_lfY7TlBb5uZMZDYC7CYDnQqHut0tntfeR7zwSlbCps0G-45IZA/s1600/calculator.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj3lu_6PdvFvoxi3eKB9fUzdwvTpXiE7Kamy0i61xRC37QJJJ_rbRsAXaWN0eXqIK6fT5ANbKsVZu7SwTlpglsIQAIy_lfY7TlBb5uZMZDYC7CYDnQqHut0tntfeR7zwSlbCps0G-45IZA/s1600/calculator.jpg" height="213" width="320" /></a></div>
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You will be bombarded with the reasons why you should take out a loan, all the benefits to you if you do and how cheap particular companies are. The problem with this is that you are hardly ever told the negative side of it, and even if you are it will be in the small text at the bottom of the page.<br />
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It is now compulsory to have representative examples on a website that tells potential customers how much it will cost to take out a loan. This is all good but lets be honest, most people will not even read that. When someone needs money fast and they find a company that will lend to them, they go straight to that company and take out the loan.<br />
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<b>Buy now think later</b><br />
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There are a large number of people who will not worry that there is the possibility of their car being repossessed and they could be left without a vehicle, they will cross that bridge when they come to it. The same goes for the interest rate, to these people it doesn't matter that the interest rate in 500 percent, at least they can get a loan. Again, they will worry about it when they are paying off the loan and are having problems making the payments.<br />
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<b>When are loans against your car useful?</b><br />
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Logbook loans are useful when you need a bit of quick cash and know you can pay it back quickly. Lenders will carry out affordability checks on you, but only you as the borrower know how stable your job is or if you will be able to pay the loan back in a few months time. Everyone who chooses to use a logbook loan needs to carefully think through the consequences of not being able to pay it back. It could set you back financially for years if you go into serious debt.<br />
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<b>Affordability checks</b><br />
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Lenders should be open and honest with you about the loan. If they think you can't afford it, they won't give you the loan. In fact if they are allowed to trade under new rules, they will be bound by agreement not to lend to you. Sometimes people will slip through the net and manage to take out loans that they cannot pay off.<br />
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If you are in a situation like this, firstly speak to the lender, they may offer you a payment plan and allow you longer to pay back the loan. The next step would be to consult the Money Advice Service for help, and then possibly go to <a href="http://www.citizensadvice.org.uk/">Citizens Advice</a> or a debt charity. There is plenty of help out there from experts who will be able to guide you in the right direction.<br />
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The video below shows how people have used debt advice from Citizens Advice to get out of tricky financial situations.<br />
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<iframe allowfullscreen="" class="YOUTUBE-iframe-video" data-thumbnail-src="https://ytimg.googleusercontent.com/vi/HAbq6d4lqUM/0.jpg" frameborder="0" height="266" src="http://www.youtube.com/embed/HAbq6d4lqUM?feature=player_embedded" width="320"></iframe></div>
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<br />Anonymoushttp://www.blogger.com/profile/18035781882001344963noreply@blogger.com1tag:blogger.com,1999:blog-7742170397678382570.post-80611911281988863532015-01-20T06:27:00.004-08:002015-01-30T03:01:39.749-08:00Why Logbook Loans Offer A Useful Alternative<div class="MsoNormal">
Logbook loans or V5 loans as they’re sometimes known aren’t
the most common form of short term finance because they haven’t had the
publicity that other forms of loan have had, but they are a way of raising
money that can be useful for some people.<o:p></o:p></div>
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It’s not that they are particularly cheap because I would be
lying if I said they were, but they don’t need you to have an impeccable credit
record and in most cases they won’t credit check applicants at all.</div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhDBtcWXzZgiLFxSaORO11wQLyxi9ZbaQKV0cZxv1YgQVtOboPLrzfXidA_m8NPIW5-BO3fDSUhlI_jOviRaI-mWHhCoaQQNQRODwJu13uHvs5ZM1AM6EfRtbnrDQ1Idd2OZ9QCU2OmVwc/s1600/mileometer.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhDBtcWXzZgiLFxSaORO11wQLyxi9ZbaQKV0cZxv1YgQVtOboPLrzfXidA_m8NPIW5-BO3fDSUhlI_jOviRaI-mWHhCoaQQNQRODwJu13uHvs5ZM1AM6EfRtbnrDQ1Idd2OZ9QCU2OmVwc/s1600/mileometer.jpg" height="213" width="320" /></a></div>
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Of course the main pre-requisite is that you have a vehicle
to use as security for the loan. The
loan is offered against the value of the car if it was sold at trade
prices. The lender will then lend up to
70% of that value. <o:p></o:p></div>
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<b>Not all logbook lenders are the same</b></div>
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Each lender is different and they will lend at different
percentages and importantly different interest rates. It’s not the kind of market where lenders
offer rates that are a few percentage points different from each other, there
can be large differences. </div>
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From searching
the market, <a href="https://www.varooma.com/Home/ApplyOnline">Varooma’s logbook loans</a> are
the cheapest, but check all lenders for deals and other costs that may be
associated with the loan. Just because
one lender is cheap it might mean that the company are recouping it’s costs in
other areas by charging additional fees.<o:p></o:p></div>
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These loans offer a
good alternative because they are quick, easy to set up, are available for people
with bad credit and are a regulated market, which is far better than a loan
shark. They are even better than a
payday loan that has very high interest rates.<o:p></o:p></div>
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<b>Better than payday</b></div>
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Logbook loans can also be a better bet than payday loans if
the loan is for a longer term. These loans are designed for lending money <a href="https://www.moneyadviceservice.org.uk/en/articles/problems-paying-back-payday-loans">over a short period</a>. The interest rates are too high for it to be
lent over a long period. Logbook loans
can be taken out over 2 months, which gives borrowers the chance to spread
their payments, although it does mean that interest on the total loan amount will
be more, the longer the loan is taken out for.<o:p></o:p></div>
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<b>No early settlement costs</b></div>
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The main logbook lenders generally won’t charge early
settlement fees, which unlike many other short term loans means that borrowers
can repay their debt early without having to pay a significant amount to come
out of the agreement. This is
advantageous to people who know they will be able to pay the loan amount back
quickly and think they might need an injection of cash quite often.<o:p></o:p></div>
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Taking everything into account, V5 loans aren’t a bad deal
for borrowers with bad credit ratings who have been refused credit cards or
other forms of finance. The interest rates
are high, but for people who desperately need cash fast and can pay it back
fairly quickly, they are a good option.<o:p></o:p></div>
Anonymoushttp://www.blogger.com/profile/18035781882001344963noreply@blogger.com1tag:blogger.com,1999:blog-7742170397678382570.post-92222005771260368622014-06-18T03:14:00.000-07:002014-06-18T03:14:05.346-07:00I have bought a vehicle with an outstanding loan balance, what do I do?<br /><div class="MsoNormal">
It is said that the second hand car market is the most complained
about issue by consumers says the <a href="https://www.gov.uk/government/organisations/office-of-fair-trading">Office of Fair Trading (OFT)</a>.</div>
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<o:p></o:p></div>
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If you are unfortunate to buy a second hand vehicle with an
outstanding loan balance it is recommended to get in contact with whoever provided the finance straight away. There is very little protection for people who buy a second hand
vehicle with a logbook loan which is why there are campaigns to cancel these
types of loans as they date back to the Victorian era and don't reflect how society has changed over the years.</div>
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<b>HPI checks</b></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiIXTIIca6G4Ecs_z2ik3Om0bs7SthP6UQZVi63y-TaS7IJp7h3MV0HsZIp4jAtKC8vugxOoefQbjgeDYk2ypIzkOrqIfrKlp3WLBCGc6GE2KV6nIcmcFOVsQu72ZIEv54OCHlq1zcu9qU/s1600/Loan+calculations.JPG" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img alt="Calculating a loan" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiIXTIIca6G4Ecs_z2ik3Om0bs7SthP6UQZVi63y-TaS7IJp7h3MV0HsZIp4jAtKC8vugxOoefQbjgeDYk2ypIzkOrqIfrKlp3WLBCGc6GE2KV6nIcmcFOVsQu72ZIEv54OCHlq1zcu9qU/s1600/Loan+calculations.JPG" height="320" title="Calculating a loan" width="320" /></a></div>
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It is up to the buyer to do their research, and pay for an HPI check (ones that are free have been known to be wrong) to make sure the
vehicle has no loans against it.<o:p></o:p></div>
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Another hidden secret to look out for is that HPI checks will not tell you about financial data which could result to you buying a
vehicle with an outstanding agreement. It is said that one in three cars that are checked through HPI usually have some sort of hidden history. HPI
checks can also report stolen vehicles, it is said to recover on average 19 vehicles a day.</div>
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In order to stay safe from HPI when purchasing a second hand
vehicle you should conducting an HPI check to confirm whether the vehicle has an
outstanding balance against it. If there was an outstanding balance it allows
the vendor to pay this off before the purchase is complete. <u1:p></u1:p><o:p></o:p></div>
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Logbook loans are an industry that grows in hard times, with people looking
for business from desperate borrowers offering an extremely high interest rate. People have found it difficult to obtain loans in more traditional ways so they have turned to logbook loans in order to give them better options. <u1:p></u1:p><o:p></o:p></div>
Anonymoushttp://www.blogger.com/profile/18035781882001344963noreply@blogger.com0tag:blogger.com,1999:blog-7742170397678382570.post-18699119651536367512014-06-11T02:10:00.001-07:002014-06-11T02:11:35.988-07:00The Loan that Could Cost your Vehicle<div class="MsoNormal">
A logbook loan is a short term loan and unfortunately you
put your vehicle at risk of being taken away, whether you took out a loan or
you didn’t. </div>
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For a very long time logbook
loans have been using peoples cars as security, and the more popular short term loans have become
the faster the profiles of logbook loans have risen. </div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgwVzFk3-31rsTCcQT8WINDf_7nw5D0to0gFOsWvRnH2h-puADukJuzluV2AoHvxDaOWLS0nGNvHgCJEEDMOk0tsmAsHuwthmuC8FKvFkg_GB1TmCA4kGQplcuBfqPBCIt1Ne3gJSF4_X0/s1600/Loan+calculations.JPG" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img alt="Logbook loan calculations" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgwVzFk3-31rsTCcQT8WINDf_7nw5D0to0gFOsWvRnH2h-puADukJuzluV2AoHvxDaOWLS0nGNvHgCJEEDMOk0tsmAsHuwthmuC8FKvFkg_GB1TmCA4kGQplcuBfqPBCIt1Ne3gJSF4_X0/s1600/Loan+calculations.JPG" height="320" title="Logbook loan calculations" width="320" /></a></div>
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Like most short term loans they often come
with a high interest rate and a financial penalty if you are unable to keep up
with payments. <br />
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Some of us may have a lot of money tied up in our vehicles
that look very attractive to logbook lenders and it is easy for you to use your asset in order to get a loan.<br />
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As soon
as you sign up to a logbook loan your vehicle is no longer yours, it is owned by the lender because you have signed ownership over to them. <a href="http://www.citizensadvice.org.uk/">Citizens Advice</a> are looking into this closely at the moment, as are some regulatory bodies.</div>
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<o:p></o:p></div>
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Most people who sign up to a logbook loan are very aware
that once you have one of these loans and fail to keep up with the terms
and conditions, your vehicle is at risk of being repossessed without the
lender needing permission. <o:p></o:p></div>
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You will find that most lenders have ways for you to repay
money you owe, this could be by using continuous payment authorities to get into your bank account. </div>
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<b>Bill of sale</b></div>
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When you sign
yourself up to a logbook loan you will need to sign a bill of sale which will
then give the lender permission to repossess your vehicle without needing a
court order. They will not need to give
you any sort of notice if you fail to keep up with the repayments. </div>
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<b>Debt collection</b></div>
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Once the
vehicle is repossessed it is usually sold at an auction. If there is still an
outstanding balance on the vehicle once it has been sold, the lender will resume
the debt collection process and chase the borrower. So not only will you lose your vehicle you
may be required to pay further money. <o:p></o:p></div>
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<b>Do your homework</b></div>
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Even if you haven’t taken out a logbook loan you should be wary when purchasing a second hand vehicle as the law states that if you buy a
second hand car and the car is unpaid for by the previous owner, the lender has
permission to take the vehicle off you. This is why it is very important to
double check and pay for an outstanding finance check when you are purchasing a
second hand vehicle. <o:p></o:p></div>
Anonymoushttp://www.blogger.com/profile/18035781882001344963noreply@blogger.com0tag:blogger.com,1999:blog-7742170397678382570.post-40903801056514216782014-06-04T04:41:00.002-07:002014-06-04T04:41:24.606-07:00What are the advantages and disadvantages of credit cards?<div class="MsoNormal">
Credit cards are one of the most commonly used forms of short term finance in the UK. In this article I look at the pros and cons of using them. Because they are relatively easy to obtain, their risks are quite large because the ability to pile on large amounts of debt is always there.</div>
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In many cases, people with poor credit ratings aren't able to take out credit cards which honestly is a good thing for people who don't have a good track record of managing money well.</div>
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If you use your card correctly you could receive extra
protection on your purchases with the chance of reward points or even cash back
when you use your card. But using your card irresponsibly could lead to you paying
lots of interest and getting yourself into debt which you could struggle to pay off. <o:p></o:p></div>
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<b>Pros of Credit Cards</b></div>
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The pros of credit cards are that they are quick to borrow
money from, for example if you did want to purchase something and you didn’t
have all the funds available, your credit card would be ideal in this situation. </div>
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You wouldn’t need to have the full amount in your bank account ready to repay straight away; you would be able to repay the cost over a number of months with
your credit card and you can also shop
online and use your card all around the world safely and securely. <o:p></o:p></div>
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Another benefit of credit cards is the consumer protection
which <a href="http://shorttermloanwatchdog.blogspot.co.uk/2014/06/unsecured-and-secured-loans-what-is.html">you will not receive with a debit card, cash or cheque</a>. For example if the company you purchase
from goes into administration or the purchase doesn’t turn up, you are able to
claim your money back through a credit card. <o:p></o:p></div>
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Depending on the card you apply for, some may offer a 0%
period which means you can effectively benefit from an interest-free loan. When
the interest rates are like this you will need to have paid the balance off in
full before the offer ends or you will be charged interest. The usual interest
rate for most credit cards would be around 18% which can work out quite expensive, which is why you should pay off your debt before the interest kicks
in. <o:p></o:p></div>
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Some may not need to extend the interest free period,
providing you pay your credit card bill in full each month you are still
eligible to borrow for ‘free’. You will
also get protection if your card details are used in a fraud transaction, your
provider should repay the money following an investigation. <o:p></o:p></div>
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If you owe money on a store card or another credit card, taking out a new card could benefit you. You will more than likely be paying a
higher interest rate and could cut this to 0% (if your credit card is 0%) by
transferring your store card balance over to your credit card. You will usually
have to pay a transfer fee of around 3% but this will work out cheaper than having
to pay your 18% for the run of the debt. <o:p></o:p></div>
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<b>Cons of credit cards</b></div>
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When applying for a credit card you must remember that it
still is a form of borrowing, even if it is 0%. The buy now pay later mentality could
potentially put borrowers at risk. It is important to keep up with monthly
payments as failing to do so could lead to your debts spiraling out of control, especially if you only pay the minimum monthly payment each month. </div>
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If possible it is wise to pay
back as much as you can monthly to try and <a href="http://www.stepchange.org/Debtinformationandadvice/Typesofdebt/Creditcarddebt.aspx">clear your debt as quickly</a> as you can
and think of a credit card as a short term borrowing facility. <o:p></o:p></div>
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When applying for a credit card it is not only the interest
rate you will be paying for, you will be charged if you are late with your payments or miss them completely. It is recommended to always pay your bill
on time and not to exceed your credit limit, as this could lead to you paying a
penalty. Your credit record will also be affected adversely if you pay late.<o:p></o:p></div>
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Avoid withdrawing cash from the ATM too as most firms will
charge around 2% and you are likely to start being charged interest immediately, as there is no interest free period on cash withdrawals. <o:p></o:p></div>
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When choosing the best for card for you, you must evaluate
what it is you need the card for. If you have an expensive period coming up, whether you are planning a wedding or are moving properties you
will need a 0% purchase card. </div>
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If you
have debt problems a 0% balance transfer offer is something that
would be recommended. Use a comparison site to find the best deal, there are plenty out there. <o:p></o:p></div>
Anonymoushttp://www.blogger.com/profile/18035781882001344963noreply@blogger.com0tag:blogger.com,1999:blog-7742170397678382570.post-9913771865324880702014-06-04T02:23:00.000-07:002014-06-04T02:23:22.658-07:00Unsecured and Secured Loans - What is the difference<div class="MsoNormal">
In this article I urge you to think about the differences between secured and unsecured loans. There are huge differences which could affect you financially. Do you really want to choose a loan such as a logbook loan that puts you at risk of losing your car? Do you need to put your property at risk? These are the questions many people in the UK need to think about before they get sucked into the loan spiral.</div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEivzqyTT7_L_XCBS_pzeYSd-Mmn4tMXoVRRApJ9YfyGocUptYRCPLtNepWcI9ZdTtHgUoMJlwvXpR0r6G79U1lrKiOBPcfRqdcDLsvNzJptCEfawDSMHm8YkHjTGzIgIigj8W8A_xdbxMY/s1600/MP900442487.JPG" imageanchor="1" style="clear: left; margin-bottom: 1em;"><img alt="Secure lock" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEivzqyTT7_L_XCBS_pzeYSd-Mmn4tMXoVRRApJ9YfyGocUptYRCPLtNepWcI9ZdTtHgUoMJlwvXpR0r6G79U1lrKiOBPcfRqdcDLsvNzJptCEfawDSMHm8YkHjTGzIgIigj8W8A_xdbxMY/s1600/MP900442487.JPG" height="213" title="Secure lock" width="320" /></a></div>
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What follows is an explanation of the loan types and what they are good for.</div>
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A loan which is secured against one of your assets, possibly be your property is usually known as a secured loan. The
interest rates for a secured loan tends to be cheaper than an unsecured personal
loan as there can be more risk if you have nothing as security. It is very
important to know the difference between the two. <o:p></o:p></div>
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A secured loan is usually used to borrow large sums of money, which would usually be anything over £10,000 but it may also be used to
borrow anything under £3,000. The name is self-explanatory, secured
refers to the fact of having something as security. In case you were unable to
keep up the payments on the loan the lender is able to repossess your
property. <o:p></o:p></div>
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A secured loan is more risky for lenders, which is why they
are usually cheaper than unsecured loans. However they may work out riskier for the
borrower as the loan provider can repossess your home if you fail to keep up
with the payments. <o:p></o:p></div>
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<b>Debt consolidation</b></div>
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A debt consolidation loan used against your property can
either be a first or second charge. You would usually apply for a first charge
mortgage to improve your property to which you would have an existing mortgage. A second mortgage would involve setting up a new agreement with your
existing mortgage lender or a different lender. <o:p></o:p></div>
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If you wanted an advance on your mortgage to borrow
additional money against your property with your current lender then you could
ask whoever your mortgage is with if this is possible with them.<o:p></o:p></div>
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By increasing your mortgage you will be able to pay a lower
interest rate than an unsecured loan, as this would be secured against your
property. Providing you have a fixed
interest rate you will be able to pay this on a monthly basis. <o:p></o:p></div>
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<b>The cons</b></div>
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On the down side, if you don’t repay your loan
you could end up losing your property. With some secured loans they have
variable interest rates which means that the repayments could increase, so it is
important to check if the interest rates are fixed or variable. </div>
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Some loans may have expensive arrangement fees so you should work this
all out before signing on the dotted line. <o:p></o:p></div>
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An unsecured loan is more straight-forward. When you arrange
to borrow the funds either from a different lender or a bank you will be asked
to repay this in full. As the loan has no security, the interest rate will
be a higher. If you did fail to keep up the payments, the lender
can go to court and arrange for you to pay this back in full, this will severely damage your credit rating.</div>
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<o:p></o:p></div>
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If you are looking to get the best secured loan, your first
step should be to approach your mortgage lender to see if they have any offers. Depending on the lender, some may offer a special deal to those borrowers who
have a good record of repaying their mortgage. <o:p></o:p></div>
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