The story of debt is one that the majority of us tell at some stage during our lives. The UK alone has an average debt of £8,000 per person. Whether from taking out loans or simply pursuing education, debt has a way of sneaking up on us. And, it can have crippling consequences.
If you’ve always kept your nose clean, then, you may be reluctant to ever consider a loan. You may well convince yourself that it’s better to go without. And, the majority of the time, you would be right. But, life often throws curveballs at us which mean that the money we have isn’t enough to get by. Let’s say your boiler broke, or you had to fork out for some other unexpected expense. In these cases, loans can be ahelp. And, despite common beliefs, it’s possible to take out a loan without ever getting into bed with debt. All you need to do is ask yourself the following questions.
Do I know what I’m signing up for?
Loans often come back to bite us because we don’t realise how much interest we stand to pay. Even worse, interest only increases the longer you take to pay back. If you planned to clear that loan in a year or two, you could find yourself struggling for five or more. Make sure that doesn’t happen by being 100% clear about interest rates. Work out exactly how much extra you stand to pay, and consider how long that would take you. If the rate seems unreasonable, shop around. In an ideal world, you want something which could see you debt free in as little as a year, interest and all.
How little can I get away with?
Often, we fall into the trap of borrowing more money than we need. Many companies only offer large loans to ensure they make plenty of money. And, that’s when debt starts to spiral. Instead of accepting then, ask yourself exactly how much you need to get by. Then, look to quick loans from companies like Fast Loan UK and others like them. With options like these, you can borrow as little as £50, and no more than £2000. With such modest sums, you increase your chances of fast repayment, especially if you next ask yourself…
How fast can I repay the money?
As you may have already guessed, the faster you can repay a loan, the better. In an ideal world, you would be able to repay that amount in full and see far less interest as a result. At the very least, you should aim to repay large chunks every month. Work out, before accepting, how long it would take to clear that debt, interest included. If you can’t manage it in a year or less, consider shopping around, or taking out a smaller sum which you can clear in a shorter time. The moment you make that last payment, after all, is the moment you come out of this debt free.
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