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A beginner’s guide to loans and interest rates

Loans and interest rates aren’t the most fascinating of subjects but you do have to have a basic understanding of these matters if you are thinking of applying for a loan and need to calculate how much it will cost.

Log book loans

If you are thinking of applying for a logbook loan, even though the weekly repayments from companies, including carcashpoint.com, are small you must realise that interest payments will form part of the weekly repayment instalment. Whenever you borrow money, you will always have to repay that money as well as additional interest, and the interest will vary from company to company.

loans

What is interest percentage?

According to the financial website Money Saving Expert, the percentage interest is the percentage of the amount of money that you have borrowed and is added onto the loan repayment amount. You will always be aware of the interest rate so that you can work out if you can repay the loan. Banks, payday lenders and logbook loan companies all adjust their own interest rates, so even though the Bank of England is currently setting an interest rates of 0.5% this doesn’t mean that UK companies have to set the same rate.

Annual Percentage Rate (APR)

The Financial Conduct Authority, (FCA) states that ‘APR stands for Annual Percentage Rate and you can use this to compare the affordability of different credit and loan offers.’ Some people find that they face problems as a result of the language of the loan agreement. For example, the wording ‘representative APR means that 51% of accepted applicants may have to pay one amount, and 49% may be offered a different higher rate.’ The key is in the term ‘representative.’ [Read more…]

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Working Your Way through a Difficult Time Without Crushing Your Loans

There comes a point where everyone has to look at the type of loans that they’re actually taking out. If you’re taking out payday loans, that’s one thing…but what about if you’re just trying to go with say a logbook loan? The truth is that when you really can’t afford to make your loan payments, you might feel like everything is just going to be falling apart. Don’t let that happen to you. If you can’t figure out how to make your payments, you’re going to find yourself dealing with a lot of tough issues. It would be better to face your problem head on, but a lot of people will not do that. They’ll bury their heads in the sand, hoping that everything will get better when that’s not the way to go about things. You’re much better off looking at the way to really get things done than just spinning your wheels.

The first thing that you must do is make sure that you are facing the problem head on. Talking to the lender is the best way to really make sure that you can handle all of this on your own. Sure, it’s scary, but do you really want to find that you just can’t seem to get things to flow as smoothly as you would like? Probably not. You want to absolutely make sure that you have things under control. Otherwise, you’re going to be in for really rough sailing. Calling the lender might sound troublesome, but trust us — they want you to call them. They want you to reach out to them. If you don’t reach out, you’re going to be stuck with penalties and other issues. The lender will not want to hear you later on when things go sour. You have to be able to stand up for yourself and make absolutely sure that you have things together.

taking out loans

Be honest with them. If it’s a temporary thing, they will definitely understand. On the other hand, you want to definitely ensure that you’re making room for big growth in your life. The last thing that you want to do is avoid facing a creditor merely because you’re afraid of what will happen. Believe us; you are better off letting them know what’s going on.

If you’re in trouble with your loans, you might be tempted to borrow more money to cover up the problem. This is not a good idea — even if your parents offer to help you out. If you know that your issue is with the ability to repay, then you have to be able to get that covered before anything else. [Read more…]