Consumers looking to get to grips with their finances over
the next 12 months may wish to consider applying for a
personal loan, one industry expert has suggested.
According to Julia Harris, mortgage analyst for Moneyfacts,
numerous commentators are predicting that 2008 will be a
"tough year in the personal finance world". This leads her
to state that for those looking to get to grips with their
spending in the coming year, "now is the time to get
prepared for the rough ride ahead". One way in which many
people could get their finances into a more manageable
condition, Ms Harris suggested, was to apply for a low-cost
personal loan to use as a means of debt consolidation.
One of the first things consumers are advised to do is sit
down and draw up a list documenting how much money they
owe, whether this is through loans, credit cards,
overdrafts or cash owed to friends and family members.
Although it was suggested that this can be the "hardest
bit" for many people, as they are often unwilling to face
up to all their financial difficulties, it says that it is
an essential step in getting to grips with finances.
In addition, the Moneyfacts analyst advised Britons to
write down all the demands on their money next to their
income to help them identify how much they can put towards
repaying debts and any areas in which they may be able to
generate disposable income.
She said: "If you are paying high rates of interest on
numerous credit cards and store cards and want to pay it
off and be left with a more manageable single monthly
repayment, then an unsecured personal loan could be the
best route for you. The advantage of a personal loan is
that you have an agreed interest rate and monthly
repayment, both of which are fixed for the full duration of
your loan agreement."
However, those who do take out a loan were advised to avoid
being pushed into purchasing expensive insurance from their
lender to protect repayments on their borrowing.
Consequently, those considering covering their loan
payments were urged to take the time to ensure that they
get the best deal possible.
Meanwhile, upon getting a loan or other form of credit,
borrowers should make sure they know how much interest they
are paying and that they are getting the most competitive
deal possible. Moneyfacts also urged people to be realistic
about the level of debts that they can pay off and if they
discover they are developing financial problems to seek out
help from a professional advisory service.
For people struggling to get to grips with their money
management as the new year progresses, a cheap personal
loan may be of assistance. Last year, James Falla, director
of debt consultancy Thomas Charles, suggested that many
Britons are unaware of how much interest they are being
charged on their borrowing. Such consumers, however, may
find that a low-cost personal loan could be an effective
means of reducing debts owed across a number of expensive
credit and store cards.
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Abbi Rouse writes for All About Loans where visitors can
apply online for cheap personal loans. We also specialise
in online tenant loans, and secured loans. Visit today
http://www.allaboutloans.co.uk
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