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Have you ever been in financial duress and need money immediately to take care of your emergency? You are not alone and many people do not have sufficient money saved up for an emergency. Having an emergency fund is so important for those times when you need money to handle a financial situation.
In many cases, London escorts might have the same problem and in fact, many of these women go into the industry to make quick money, even if they do not have a passion for this kind of profession. In those cases, it’s best to consider obtaining a personal loan for that one-time emergency.
Not For Everyone
A personal loan is something that will fix a financial challenge with the hopes of paying it back on time to free yourself of that debt. With a personal loan, you are able to borrow for whatever reason, whether you want to go on a vacation, renovate a home, or take care of medical bills. Not everyone will benefit from these loans because some people already have a high debt ratio and so, taking on more debt would not be a good idea.
However, if you are in a position where you do not have too much debt and you are in a financial strait, you could consider this borrowing option. Let us look at some of the reasons why you would opt for this choice.
For one, personal loans are usually quite affordable since they have lower interest rates in comparison to credit cards. In addition, these are the kinds of loans where the borrower gets a few years to pay it off slowly. Not every one of these loans will benefit you, especially payday loans, which are quite expensive.
Not every payday loan lender acts unscrupulously, but some do by charging exorbitant interest rates to borrowers. Just ensure that you don’t end up obtaining one of these loans that will eventually cost you more and have harsh loan terms. Therefore, prior to taking out a personal loan, it is best to know about those red flags.
Always remember that being in need of money is just a temporary occurrence. There are times when you will have money and then, there are those emergency periods when money is tight.
For instance, if you are laid off from work and your employer indicates that you will return within a short two-month period, you may be one of those people that live from paycheck to paycheck and just need a little financial help while you wait to go back to work. Or, it could be that you might need to cover a specific expense that just popped up unexpectedly.
If you only need the loan for this temporary situation, then a credit card approval with 0% introductory rate could be the ideal option instead of a personal loan, especially if the amount you are seeking is low. It is easier to pay off a credit card during the zero interest rate period. It will cost you less. With the personal loan, you would have to consider paying interest for the duration of the loan.
If you own a home and you have financial problems, the best thing to do is to use the equity in your home, borrowing against it instead of thinking about applying for a personal loan.
The equity that you have in your home is your way to obtaining money for your financial issues.
Your home becomes the collateral for the loan. Some homeowners make this option their last resort since it puts your home at risk, especially if you fall into default of the loan. The bank has the power to foreclose on your home. However, many homeowners use home equity as a viable vehicle to obtain a loan. Sometimes, it is better that you take another avenue.
Is It Better To Wait?
When applying for a personal loan, you should weigh your options, whether this is the best decision or it is better to wait until you raise your credit scores, build your credit history or be able to get a lower interest rate. If you have a low credit score or no credit score, it is going to take some time to build it.
However, it can be done and with a higher credit score, your interest rate on a personal loan would be lower. In this case, it is easier to just wait, if your financial situation is not an emergency.
Can You Really Afford A Loan?
If you apply for the loan and you feel that it is not in your best interest, follow your instincts. Look at your employment situation, how much income you earn, your expenses, and your family situation before making a decision. Think about how you would meet your loan payment obligation, if you were to lose your only mode of employment, or if you became seriously ill. If you are uncertain about the outcome, then you may not be able to afford a personal loan right now.
Here are some of the criteria to look for, if you decide to pursue a personal loan:
* Short repayment timeline
* Low interest rate
* Low monthly payments
* Low credit score
* No origination fee
* Reputable lender
* Low risks
* No prepayment penalty
* Low debt to income ratio
* Good terms and conditions
* Funding period
* Eligibility requirements
Before you settle for any one lender, it is best to compare these things amongst various loan providers. Find a lender that offers reasonable fees and rates. Be sure that the timeline for repayment does not force you to remain in debt for years or that may require that you pay off the debt in less time. Be mindful of the total cost to obtain the loan and any upfront fees required.
Like all financial decisions, you must take time to weigh the situation to see if it is in your best interest. For example, if you find yourself deep in medical bills and don’t see any way out, then a personal loan could be the answer, but if you want the loan to turn your bathroom into a spa-like phenomenon, then you probably need to rethink this decision.
The best thing to do is to start putting money into an emergency fund for the times when you might need it. Otherwise, if you do obtain a personal loan, respect your financial obligations so that you don’t mess up your credit because later on down the road, you may need the same help again.