Finance: Different Ways to Borrow Money

Different Ways to Borrow Money

Written by John Mussi

There are many different ways to borrow money. Outlined below is a useful guide to some of most common ways of borrowing money.

Loans

There are many loan companies offering to lend you money. They will check your credit worthiness and may offer you a secured loan or an unsecured loan.

A secured loan means that you undertake to give repparttar lender property you own if you do not keep up repparttar 145742 repayments. In return, you usually get a lower APR and longer repayment period. An unsecured loan costs more in repayments but does not carry all repparttar 145743 risks of a secured loan.

Overdrafts

Your bank might allow you to overdraw - that is, borrow from repparttar 145744 bank by taking out more money than you currently have in your account.

You will be charged interest on your overdraft and possibly a fee as well. If you go over repparttar 145745 overdraft limit set by repparttar 145746 bank, you will have to pay a lot more.

Check what repparttar 145747 bank charges for overdrafts and try hard not to go over your limit. If you do need to borrow and cannot repay repparttar 145748 amount very quickly, you might be better off with a bank loan.

What are Payday loans and how they can be very expensive

Written by Joel Teo

What are Payday loans and how they can be very expensive

By Joel Teo

The media has been telling people about how easy it is to get a payday loan where you can get an unsecured until your next payday. What most people do not realize until it is too late is that a payday loan is actually a very expensive form of credit. This article would therefore explain how payday loans work and why they can be very expensive for repparttar borrower.

Payday Loans are unsecured loans which charge high interest for short periods of lending. Many people seem to flock to them to tide over their credit card debts until their next payday thus repparttar 145717 name. Other names for payday loans include cash advance loans, check advance loans or deferred deposit check loans.

What usually happens when a borrower signs up for a payday loan is that they write a personal check to repparttar 145718 lender for repparttar 145719 amount plus a fee. The company then gives repparttar 145720 borrower repparttar 145721 amount of repparttar 145722 check less repparttar 145723 fee. This fee is usually a portion of repparttar 145724 loan sum.

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