Loans help you buy what you cannot afford!Did you know that the average UK household only manages to save £132 a month? This equates to 5.5% of average household income. This measly sum won’t even touch the sides when it comes to purchasing a car or holiday of your dreams. It’s no wonder that millions of us are forced to turn to credit sources such as credit cards and loans to buy things that we just could not afford otherwise. A loan is part of the staple financial diet when it comes to getting money in the U.K. In its simplest form, a UK loan is where you borrow money that you do not have! The lender will charge you for lending you the money; this is known as the interest rate and is normally quoted as an APR %. You then pay this back by making monthly repayments. You would think that as thousands of loan applications are made on a daily basis that we would all be really knowledgeable about the different forms of loan available; but we are not! The loans market is a financial minefield! There are so many terms that all mean pretty much the same thing that it’s easy to become confused and overloaded. For example, would you be able to differentiate between the following?
Did you know that some of the above terms actually mean the same thing? If you did, well done you! If not - read on! This section of our website is dedicated to illustrating the different types of loans available in the UK, which terms mean the same and how to work out which type of loan is right for you. |