Have you heard the phrase ‘Life is what happens when you are busy making plans’?
It sums up those out of the blue moments where life throws you a curve ball. It can happen to anyone and everyone. Your car breaks down on the way to your new job, or the washing machine has given up on you just as the kids are going back to school.
And usually, when life throws us something tricky to deal with, we need some extra money to help us get through.
Having a trusted way to get financial help when you need it quickly means you can move on with your life and get on with what really matters.
There are lots of options out there with something to suit every budget, but it makes sense to do your homework. Think about what would suit your situation best. Shop around to find the best option for you. A good place to start is by working out your budget, for example by noting down what bills you pay on a regular basis.
There are lots of great free budget advice and planning services available, online and in person. You can find awesome tips on how to save money so there is something in the kitty for life’s curve balls. But there are always those things you can’t plan for. This is when getting a loan might really benefit you.
If you do need money quickly, and decide a personal loan is the best option for you, it helps to understand some of the things to look out for. Here’s some of the most important lingo you need to know when applying for a personal loan.
This is the date the money is in your bank account and ready for you to use. This is particularly important if you have to pay out on a deadline.
All lenders charge a fee to cover the cost of setting up a loan. A good lender makes sure you know exactly what this is when you take out a loan.
This is a printed letter you sign that has all the loan details on it. It shows how much you have borrowed, what you are being charged and how much you need to pay back. It also has dates you have decided with your loan company that is good for you to make payments. It is a legal document so keep it safe.
This means Annual Percentage Rate. This is important because it shows how much a lender will charge you to borrow money. The APR tells you what percentage is put on top of the loan over a whole year. This is useful so you can compare apples with apples, but often you might want to pay it back quicker than a year.
This is a loan that uses something you already own, like a car, as an asset if you get into difficulties paying money back. Lenders can take possession of your asset if you don’t pay the loan back when you agreed to.
Unsecured loans don’t use something you own as a security. Often these are for smaller amounts than a secured loan.
Getting money when you need it can help get you back doing what really matters to you. And back to making plans!