What is a Loan?Written by John Mussi
A loan is money that you borrow and agree to pay back over a set period of time with interest. The amount of money you borrow is called principal, and interest is cost for borrowing money. The length of time set to pay back loan is known as term. It is best to get a loan only for very large purchases or in an emergency. Getting a large loan or getting many loans that you can't pay back can cause huge financial problems, because it can get very difficult to pay them back each month. There are many benefits to getting a loan. A loan gives you money you need to pay for something big like a house, a car, college tuition, or major home repairs when you don't have cash to cover purchase. Most people could not afford to do these things without loans. Loans come in a variety of shapes and sizes each performing a different function and having different interest rates. Loan rates are variable, depending on status. Loan repayments will depend on amount borrowed and term. Loans are taken out with selected, reputable institutional money lenders. Depending on type of loan chosen you can borrow anywhere from £500 to £1,000,000 and can repay it over a period of between six months and twenty-five years. Nowadays, it is quite easy for most people to qualify for a loan of one sort or another even if they have a bad credit history. Loans can be applied for in person, by telephone or more commonly now, over Internet. Loans can be used for any purpose. A loan can help you with home improvements such as a new kitchen or bathroom, that once-in-a-lifetime holiday, your dream car or repaying debts to reduce your monthly outgoings to a more manageable amount.
| | Guide to Home InsuranceWritten by John Mussi
Here is a useful guide to Home Insurance. Home insurance covers damage from incidents such as fire, theft, and vandalism to your house, usually adjacent structures like a garage or shed, and your personal belongings. It covers living expenses if your house becomes temporarily unusable. Home insurance, also known as Household Insurance is a policy designed to cover your home and if applicable its contents against possible risks. If you have a mortgage, your lender will insist you have buildings insurance. There are two types of home insurance - contents insurance and buildings insurance Contents insurance is designed to cover your possessions if in home in circumstances where you suffer a burglary or you have an accident where damage is caused. Buildings insurance is designed to cover actual building you live in- bricks, roof, floors, doors and windows and general building structure from naturally occurring events and where applicable accidental damage. Buildings Insurance Policies usually cover, natural events such as fire or flood, storm or lightning, burglary or damage from attempted burglary, subsidence or heave, burst pipes, water tanks or boilers. Contents Insurance Policies usually cover, loss of possessions resulting from a burglary, damage to possessions caused by burst pipes, water tanks or boilers, damage to possessions arising from fire/theft or natural events.
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