At times like Christmas you may want to do something different, such as spend it in an extra-exotic location. It may not be just at Christmas. You may just want to get away from it all but because of other financial obligations perhaps you can?t, no matter how much you need that holiday.
One option is to apply for a personal loan from HSBC or similar bank or loan provider.
Of course, personal loans incur a financial responsibility that you shouldn?t take lightly. If you?re smart and take different aspects into consideration, you can get a loan for much cheaper and manage your finances easier.
Benefits
Taking out a personal loan helps you to pay off several debts at once, leaving you with just one debt to cover, which you do with a fixed monthly payment. Choose a loan with the right terms and conditions and you can make the debt cheaper by obtaining a lower rate of interest.
How do you choose a loan?
It?s important to know there are two types of loans: secured and unsecured. With a secured loan, you guarantee an asset, such as your home, in return for the loan. The loan provider then claims this asset if you default on your repayments. Unsecured loans require no guarantee but come with higher interest rates.
Before taking out your loan, use a budget planner to decide how much you need to borrow. Keeping a record of your income and expenditure provides a picture of your spending habits. The budget planner will also indicate whether you?ll be able to meet your loan repayments each month.
Generally, the more money you borrow, the lower the interest rate will be. However, resist the temptation to borrow more money than you really need.
Repayments
Read the small print first. Check, too, the annual percentage rate on your loan. This will include the effect of any arrangement fees for your loan and paint a clearer picture of how much you must repay.
You may be able to pay off your loan early. Congratulations! However, loan providers normally apply a penalty of two months? interest for this privilege. Consider this when choosing your loan too. Avoid small firms who you?ve never heard of, for they may apply higher interest rates to repayments or charge excessive fees for early repayments.
What about when you?re an expat needing a loan?
These tips will hold you in good stead, but, obviously, different loan providers offer different terms and conditions. Some banks in the UAE, for instance, have changed their original requirements for customers who take out personal loans with them. At some you no longer have to have your salary paid into an account with them, or if you do your employer doesn?t have to be on the bank?s register of approved employers. You just have to have a good account history for at least six months. With these tips you?ll be able to make a much more informed choice when taking out your personal loan.
Source: http://epicafinance.com/smart-choices-with-personal-loans/
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