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A lot of people in the UK turn to credit cards when they need extra cash. However, this is one of the most expensive options at your disposal, which is why it is not a wise idea. Every month, you will need to make the minimum payments on your card, and you will get charged interest on the rest of your balance until your credit card is paid off in full. Interest rates do differ, yet the APR is typically at least 20 per cent. Sometimes it can be as high as 40 or 50 per cent! On top of this, you always have your standard credit card fees.
If you go down this route, the cost of borrowing money is quickly going to get more and more expensive. It is quite challenging to comprehend how much you are going to end up paying for the privilege of borrowing money in this manner. Credit card charges are very difficult to understand. A lot of people feel that they have done their sums correctly, and then they are alarmed to see how much their credit card bill actually is.
A lot of people also have the same sort of approach to their overdraft. Overdrafts are helpful because you can quickly access capital. However, an unauthorised overdraft is very costly. Authorised overdrafts are typically not as expensive, yet the interest on this balance is also usually around the 20 per cent mark. This rate is only reserved for those with a great credit score. For a lot of people, fees can be around the 35 per cent mark, which can make overdrafts just as expensive as credit cards, if not more so! You may also need to pay other fees on top of the interest.
Have you considered bridging loans?
Bridging finance is an option well worth considering instead of a credit card or overdraft. Bridging loans are usually much cheaper as well! Bridging finance differs from most conventional loans because of how they have been established. With the correct support, you can receive offers quickly, with most coming in within 24 hours. You can get your deal done within a week in many cases, ensuring you can get the funds you need to access as quickly as possible.
A bridging loan is a type of secured loan. It will be secured against a property you own. It does not have to be a property that you live in. It could be an investment property, for instance. Bridging loans can help you in many different scenarios in life, including purchasing property or land, paying off a loan, growing a company, financing investments or diversifying your assets, and locking in opportunities. Many finance brokers will work with introducers to arrange the best type of finance for an individual’s particular circumstances
So long as the lender you choose is satisfied with the terms of your loan, you will be able to use it in the manner you wish, ensuring that this solution is truly personalised to suit your specific needs and requirements.
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