When we think of borrowing (long term loans and financing) we never think about getting cold, but a lot of people have been mired in debt just because they have not considered the dangers of getting the wrong type of credit for their need. But it must be said that borrowing or financing is not wrong, the problem is not knowing the options and not knowing which one is best for your need. Here are some examples:
Personal Loans For Bad Credit: see how it works
How it works: The worker hires the loan and authorizes direct debit on your payroll. This type of credit is available to registered workers whose company provides this modality. It is best to inquire at HR to check the possibility.
Advantage: low interest rates – from 1.77% to 2.37% per month – average of 2.07% per month, even when it comes to Personal Loans for Bad Credit.
Disadvantage: in case of dismissal the loan can be deducted from the salary termination or made in installment. Getting without the indemnity or having a loan payable monthly at a time of unemployment can be a serious problem.
When to use: to settle a higher interest debt, for example, debts on credit cards, overdraft, or any other whose interest rate is higher than the rate of payroll.
Contraindications: Do not hire credit just because it is “cheap”. Many people have committed their wages for years just to buy clothes, shoes, gifts or a new appliance without considering that they are paying more expensive than the price tag, since every loan has interest. Use only in case of need. Read more.
What are the advantages of the long term loans?
- They offer a low interest rate.
- Lots of money can be borrowed.
- It can be used for personal loan, in which it is not necessary to specify what the money will be used for.
- From the beginning of the loan you will know how much you will pay for it.
- It allows greater organization in your personal finances.
- What are the disadvantages of the loans?
- They cannot be renovated. If your loan expires you must make a new request.
- Most of the time you have high administration expenses.
- In some cases, they are difficult to negotiate.
- It can only be used to buy one thing.
- The interest rate, although low, changes according to the market indices.
- Some countries charge a high commission to make an advance payment.
Who can lend you money when you have bad credit?
The lender is the individual or the financial institution that lends the money and the borrower is the person who receives the money lent. Thelong term loans are used to finance medium or long-term operations and are made for the purpose of buying or acquiring a good or a service, among which are: real estate, vehicles, commercial establishments or studies. These goods are long lasting and previously we know their price. In order to make a loan it is necessary to have personal guarantees, such as an endorsement, solidarity debtor or real guarantees, such as a mortgage or a good that guarantees the payment of the debt. Click here for more information: https://www.everyday-loans.co.uk/need-a-loan/