Different Ways to Borrow MoneyWritten 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 lender property you own if you do not keep up 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 risks of a secured loan. Overdrafts Your bank might allow you to overdraw - that is, borrow from 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 overdraft limit set by bank, you will have to pay a lot more. Check what bank charges for overdrafts and try hard not to go over your limit. If you do need to borrow and cannot repay amount very quickly, you might be better off with a bank loan.
| | What are Payday loans and how they can be very expensiveWritten by Joel Teo
What are Payday loans and how they can be very expensiveBy Joel Teo All Rights Reserved 2005 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 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 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 lender for amount plus a fee. The company then gives borrower amount of check less fee. This fee is usually a portion of loan sum.
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