Finance Articles

Need To Borrow Money? Then Borrow The Smart Way

Most of us borrow money to buy our homes, and many of us borrow money in the form of a loan to pay for cars and holidays, or the odd shopping treat. If your borrowing is under control, then it is a sensible way to manage your finances.

The secret to safe borrowing is making sure your debts and the interest you pay are kept under control.

So if you are going to borrow money, what is the best way to do it? We look at the advantages and disadvantages of the most popular methods borrowing.

Unsecured personal

Unsecured personal loans from a bank, building society or other provider can be a relatively quick and easy way to buy what you want or to consolidate your debts. Generally they allow you to borrow between ?500 and ?25,000. But they can tie you in for between six months and 25 years.

Because these loans are unsecured - there is no collateral such as your home to back them up if you default - therefore lenders can sometimes charge more to compensate for their risk.

Lenders advertise their Annualised Percentage Rates, but beware as depending on your credit history you may not get qualify for the lowest rate. If you are believe you to be a higher risk then they will charge you a higher rate.

Personal loans tend not to have set-up fees. The downside is that if you wish to pay back the loan back early ahead of the agreed time you could be stung with early redemption fees. It is always good to pay off debts as soon as possible, so personal loans may not be right for you if you think you may have the ability paying them off quickly.

To find the best personal loan for your circumstances see our best buy tables and apply online.

Homeowner loan

A homeowner loan is similar to a personal loan, but it is secured on your home. Interest rates on homeowner loans tend to be variable, unlike unsecured personal loans, which have fixed rates.

You also might also have to pay other charges, such as an arrangement fee which may include a property valuation fee.

Again, these charges have to be added to the interest you pay when calculating the best homeowner loan for you.

The big advantages of homeowner loans over personal loans are that they usually allow you to borrow more money over longer periods of time (between three to 25 years) and usually up to the equity you have in your home. You might still get more than this, albeit at a higher interest rate.

Because you can pay the loan back over a longer period, then the monthly repayments can be more manageable, helping you control your finances better, however if you don't keep up repayments your home can be at risk. So think carefully before you commit.

The interest rate on a secured loan can be lower than for a personal loan because of the extra security. However, this is not always the case, so you do need to check what rates are available to you.

Find the best secured loan quote for your circumstances

Re-mortgage

For most of us, a house is the best security we have. If the value of your home is greater than the mortgage you owe on it - you own part of the house and have equity - then you can usually re-mortgage to raise cash. If you have a good record of meeting payments on your mortgage, then you are likely to get a quick decision.

There can be fees for re-mortgaging, and you have to take these into account when weighing up the cost. A key advantage in many cases of re-mortgaging is the flexibility to make overpayments, so you can clear the debt as soon as you can and cut your interest bill.

The interest rate can also be lower than that on offer from personal loans, but you still need to check this. To see whether your mortgage is competitive, click here to get advice on the best mortgage product for you

Overdrafts

The most flexible way to borrow for those who can repay quickly is an overdraft. But use them with caution as there can be some pretty hefty charges and interest to pay if you do go overdrawn.

Some overdraft facilities are free whist others may for charge interest on the money borrowed. But if you can repay in full in a short space of time - such as when your pay cheque goes through - then this is a quick and easy way borrow some extra money. The interest rate may be high but it's over a very short time with no redemption penalties.

How much of an overdraft you can negotiate depends on your bank, how long you've had the account and how much you pay in every month. The charges you need to look out for are annual fees for setting up overdrafts, fees for going over your limit and monthly charges.

To find the best current account check out our best buy tables.

0% introduction purchase rate credit card

If you need to buy and item and cannot pay for it immediately, then a credit card with a 0% introduction rate could be the solution. These introductory rates can be for periods up to 12 months.

This is one way of borrowing interest-free. This might be the case, for example, if you need to borrow for Christmas presents or pay for a birthday treat but don't have the immediate funds to cover the purchase. As with all debt your aim should be to pay it off in the shortest time possible,

To find the best 0% balance transfer credit card for your circumstances have a look at our best buy tables

Payday loans

If you only want to borrow a smaller amount of ?80 to ?750, and will be able to pay it off at the next payday or the one after, a payday loan offers another quick and easy solution. They can be arranged within a few hours over the telephone or online.

Even those with an adverse credit history can qualify provided they can prove they can pay off the loan at the arranged time. Payday loans might be good to use in emergencies, but you should use them with caution because the interest rates are high.

To get a Payday loan quote fill in our simple online form

Weigh up the costs

Whenever you borrow money you should add up all the interest and fees payable under the different methods and see which is the best solution for you.

Whatever you do remember you generally pay less the sooner you clear your debts - so be debt-free as soon as you can!

MoneyExpert - http://www.moneyexpert.com/

Other Article Sites

findabook.com  moneycd.info  a-mortgage.info   about-lemon-laws.info  aboutstudentloans.info
all-about-publishing.info  auctions-articles.info  bestcollege-university.com  bestispconnection.com
biblefolder.com  blogger-website.com  books-used.info  brokers-guide.info  buywindows.info  cable-dsl.info
career-miner.com  carpel-tunnel.info  cashinaflash.info  cashloanreviews.info  casinobell.com  chat-house.info
clearmycredit.info  collegeloantips.info  crones.info  depression-articles.info   dirnic.net  dishguides.info
divers-below.com  expodog.info   financewizz.com  fire-insurance.info  getgood.info  handleit.net   it-idea.info
health-supplies.info  hosting-right.com  insidealert.com  insurance-facts.info  jobs-employment.info
justgood.info  lookgold.net   lowcost-travel.info  money-source.info  myhostzone.info  numisblog.com
peoplesearchfinder.info  pr-articles.info  realeas.com   refinancing-guides.info  spyware-remove.info
telelot.info  the-law.info   toppaid.info  travel-deals.info  travelcorrect.com  wedding-guide-site.com
your-blog.info  your-credit.info

Investment Property portfolio?s - 6 Key Strategies for a smart loan
A booming market for buy-to-let and investment property portfolios has created the need for new types of mortgages and investment property loan facilities. Securing finance for buy to let and holiday rental properties classed as an ?investment property loan?, has never been easier and many of the main lenders have transformed their lending criteria to support property entrepreneurs.

Genesis Business Group Offers Investment Opportunity: Four Billion Dollars in Them Thar Mica Mine Hills
Four billion dollars of mica minieral reserves located in Alabama. The largest scientifically proven reserves in the Americas.

Importing Goods From China? Learn How to Finance your Import/Export Company
It is no secret that many small importing companies have become big importing companies by capitalizing on the opportunity to buy goods from Chinese companies and re-sell them at great profit margins. With that accelerated growth comes a very big challenge. Sooner or later, you will get an order that exceeds your available financing.

Mortgage Insurance is Now Tax Deductible: Savings for Many Would-Be Homebuyers
Katz Mortgage Team, www.KatzMortgageTeam.net, of Amtrust Mortgage Corporation, has announced that Congress has just passed long-awaited legislation that will make mortgage insurance payments tax deductible on new mortgage originations beginning January 1, 2007.

Tips to Make Your Mortgage Shrink
For nearly all homeowners who have a mortgage on their house or condo, they dream of the day when it is finally paid off in full Having that legal document in hand that says you are free of debt and the property is in your name is an extremely satisfying life-long goal for many people

Your New Home Mortgage - Selecting The Best Provider
The new home mortgage may just be what you need so you can reduce the monthly repayments for your home loan. Here are the ways to select its provider.

Is Owning A Home A Good Investment?
The Rich Dad, Poor Dad real estate investing book series (written by Robert Kiyosaki) encourages property buyers to consider whether they should be investing they?re money in a particular investment property or not. A good deal, as expressed by Kiyosaki, is one that will give the investor a return on the investment in a reasonable amount of time. A strong investment is one that isn't a whole lot of money up front, such as repairs, to offset the money coming in from the rent.

Springboard Assists Federal Reserve Bank with Community Response to Rising Mortgage Woes
Springboard President and Chief Executive Officer Todd Emerson panelist in discussions with counselors, lenders, and community leaders to asses community impact of mortgage default and foreclosure

China Study: Is it Lucky Numbers, or do Fundamentals Count? Revealing the Investment Behavior that's Driving the Shanghai Stock Market
A new study by Kapronasia and Amber shows that individual Shanghai A-Share investors have a solid understanding of the market, yet continue to invest even though they believe the market is experiencing a bubble.

Cornerstone Revolutions, LLC, Spotlights one of 'America's Best Financial Advisors' in March Webinar on Investment Policy Statements
Linda S. Lubitz Boone, CFP® and founder of the financial planning firm, The Lubitz Financial Group, to speak on "How to Build and Improve Your Practice Using Investment Policy Statements" at Cornerstone Revolutions' Webinar, March 18, 10 a.m. PST.

When An Interest-only Mortgage Is A Good Idea
An interest-only, mortgage is not a particular type of loan in itself; instead it is an option that becomes added onto another loan. It works rather simply. For a predetermined period of time, typically 5, 7, or 10 years, the buyer only pays the interest portion of the loan amount. After this initial period is up, the mortgage becomes fully amortizing and the owner is required to pay both the interest and principal portions of the loan. Because the payment amount of the loan becomes substantially higher after the interest-only period, this type of loan is recommended only under the following circumstances:

Debt Consolidation Mortgage - Decode Its Apparent Complexity
Someone great once said that 'if it isn't the sheriff, it is the finance company'. Do you feel the same? Has the piling up of bills forced you to take several loans? Do you live in constant dread that someone would soon come to claim his money.

How To Start Your Own Home Based Accounting And Bookkeeping Business
Are you own of those people who are tired of being confined inside your windowless office cubicle? If you have been feeling claustrophobic in your small cramped cubicle with nothing but the computer filled with accounting files, now is the time for you to get out of there and look for something that will not really drive you crazy. There is really no point of torturing yourself and getting all your nerves worked out even if the job does pay the bills. Always bear in mind that you are not here in this world simply because you need to pay the bills! You have to live your life a little and have some fun.

First Time Home Owner Mortgage Loans
First time home owners are sometimes surprised at the complexity of the mortgage lending process. If you are searching for a mortgage and you have never owned a home, there a few things you can do to make the mortgage process less confusing.