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Should I take out a loan?
It's your choice, only you can decide. We are not financial advisers and we will not recommend one product over another. However, we will tell you your options and you can make up your own mind.
First of all, there is no disgrace in taking out a loan. After all what is a mortgage? How many people do you know who can buy or actually own their home outright? Therefore, they have borrowed money to buy their property and have had money lent to them to make the purchase - a loan.
You have to make a choice, you can either borrow money on a Credit Card or you can take out a loan. The key factor is interest. Shop around for the best rate, we would recommend you look for a fixed rate for the life of the loan, that way you know what rate you will be paying until it is paid off. The drawback with a credit card is that Credit Cards are affected by other interest rates such as the Bank of England, which make their rates fluctuate.
Their are two main types of loan secured or unsecured. Unsecured or personal loans are based upon your income and Secured or homeowner loans are taken out against your property. Both have their problems. An unsecured loan will usually only allow you to borrow a small amount, as it is based upon the amount you earn. A secured loan is lent against the equity that you have in your home, no equity - no loan.
The key to taking out a loan is Insurance. Make sure you take out insurance as this protects you against loss of income. This is often described as income protection. Whatever, the name it is essential, many lenders will insist that you take this out, before they will grant the loan.
Whatever, your decision, take it very seriously. Realise that it is a commitment for many years and will not go away. Don't over-stretch yourself and don't fall behind with your payments. Seek advice if you need it and good luck in making the right choice, we hope we've helped.THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. THE ACTUAL RATE AVAILABLE WILL DEPEND ON YOUR CIRCUMSTANCES. LOANS ARE SECURED ON YOUR HOME.(Text provided by Absolute Solutions.)
If you would like to look at a selection of loan companies and their products, here's the link:
CLICK HERE TO VISIT OUR LOANS PAGE!
If you would like professional help or counselling about your finances, here's the link:
CLICK HERE FOR PROFESSIONAL HELP IN SOLVING YOUR DEBT PROBLEMS!
If you can't see the wood from the trees, you may want to sign up for Debt Management.