Karen

As someone that has a great love for learning, being a freelance writer is the perfect job. I need to research all sorts of topics to write about and that is interesting and fun and it means that I am able to learn lots of interesting things while I am working. I write quickly too which means that I can get a lot done each day which I enjoy. I feel really lucky to be able to do job I enjoy and hopefully write about things that people feel interesting. With this finance writing I feel great knowing that I will be helping people too.

Should I Get Lots of Store Cards?

There are many stores that have cards that you can apply for. These store cards have different benefits, but they tend to all allow you to use them instead of cash and repay them when you get a statement or pay interest and borrow the money. They also tend to have special offers so that you get advantages to using the card rather than paying by cash, debit card or credit card. However, a store card can normally only be used at the shop that it is issued which means that you could be tempted to get a card for each shop that you use so that you can get the benefits of all of them. However, this might not be the best idea. It is worth contemplating the disadvantages to decide whether it will work out for you.

Possibility of Overspending

If you have a lot of different cards then it can be difficult to track how much you are spending. You need to think about whether you might spend too much across the cards and find it really hard to manage to repay the cards. You will need to be able to make sure that this does not happen. You might be happy with keeping a written track of how much you are spending on the cards and use that to help you to make sure you will be able to afford them. You might be able to access an online account of how much money you have spent as well, which could be useful. However, you could find that you will find it too tricky to do this or that you may not be able to access them all anyway. Therefore, you will need to be careful and think about whether you think that you will be able to keep track of the spending that you do to make sure that you will be able to repay the cards without the risk of going into debt or struggling with the repayments.

Costs

When you have a store card you will have the option of repaying it in full or you can just repay a minimum amount and owe the money. This is an option that a lot of people take but you need to think carefully about using it. This is because you will find that there is a high interest rate on this sort of card and so you will end up having to pay out a lot of money. You will find that it is quite easy to ignore the interest as you will pay it monthly and so it will not accumulate on the account and may not even look that much. But if you add it up you will be able to understand how much it could cost you over a year and that will not be an insignificant amount. If you are fully intending on repaying the card in full each month, then there is unlikely to be an additional cost. So, you will need to think about which is likely to be the case with you and you will be able to decide whether the costs will be high or irrelevant.

Temptation to Spend

If you have a number of cards then it might increase your temptation to spend money. You might feel like you want to buy lots of things because you have the cards and do not have to immediately find the money to pay for things. If they all have different deals on as well, you might want to use each of them because you will be able to use all of the different deals. This could mean that you will be really tempted to spend far more money than you can actually afford and this could mean that you will get into financial difficulties. However, you might be sensible with the cards and only use them to buy things that you would have bought anyway and that could help you to be able to take advantage of the deals that are on the cards.

Are Payday Loans for Anyone?

There can be some confusion at times as to who payday loans are for. This is because they are fairly new to the market and there are a lot of people that have not used them before and have not found out much about them. Therefore, assumptions are often made which may not be correct. It is really worth knowing about all loan types though. If we do not know about them and how they work though, we will not know whether they will work for us. It is a good idea to make sure that we do know lots about all of our options and then we will be able to pick the best loan for us.

Who are Payday Loans for?

With a payday loan, people often just assume that they are not for them and therefore they should ignore them. However, it is a really sensible idea to think about who is allowed them and then you will be able to decide whether they are suitable for you or not. Loans differ in the way they work and this means that they end up being suitable for different types of people. With payday loans there are no restrictions on who can use them, which is different to many loans. Most loans will require the borrower to have a good credit rating. This means that the lender will look at their credit report and find out how well they seem to manage their money and how much income they get in and they will judge them based on that. This means that there are many people that will not be able to get a loan like this because they have had financial problems, they have a low income or they have not borrowed before so cannot prove they are able to repay the loan. However, with a payday loan, this is not important. The lenders will allow those with a poor credit score to still have a loan if they wish to.

The loans are for small amounts of money up to £1,000. This means that you will only find that it will work for you if you are interested in borrowing smaller amounts. Otherwise you may need to look for a different type of loan. You will also be wise to look into the repayment of this type of loan. It is quite different to the way that you normally repay loans in that you will need to repay it all in one go when you next get paid. You will need to agree to having a direct debit set up so that the payment goes out automatically when you are paid. This will help you to remember to pay it, but you will need to make sure that there is enough money available to do this and to pay any other bills that you have coming out of the account at that time.

Are They for me?

So whether they will work for you will depend on your circumstances. It is always wise to compare all of the loans to try to work out which is going to be the most suitable for you. You need to think about what your requirements are and then you will be able to work out whether this sort of loan will work for you. It is good to bear in mind the main features of the loan and that should help you to think about whether it will suit you or not. So, the loan is suitable for those with a poor credit record but it can be used by anyone else as well as it might have other advantages suitable for them. The repayment process, for example, could be beneficial because it has to be repaid in full very quickly. This is suitable for people that do not like the idea in being in debt and want to repay quickly. The amount that you can borrow is also small and this suits borrowers that do not want to borrow a lot of money.

Should I Use a Guarantor Loan to Pay for a Holiday?

Most of us like holidays and we will often go regularly in order to have a break or to spend time with our family. It can be a really lovely thing to do and a great way to recharge our batteries. However, all holidays have to be paid for. Therefore, you will need to think about how you are going to pay for your holiday. This is something, which can be fine if you have savings, but if you do not, then you may need to look at your borrowing options. It is wise to look at all of your borrowing options so that you can decide which will suit you the best. Consider the features of the specific loan and think about whether it will suit your needs. The example used here is a guarantor loan, so that you will be able to see how it works and then apply it to other types of borrowing.

How Much Can you Borrow?

It is important to start by thinking about how much you will need to borrow in order to cover the cost of your holiday. This will vary greatly depending on the length of your holiday, how many of you are going and where you are going. You may not know exactly how much it will cost, but it is good to have a vague idea by looking up that sort of holiday and seeing what they cost. You will need to then see whether the loans you are looking for will provide you with enough money. The guarantor loan will lend between £1,000 and £10,000 and so it would be suitable for a more expensive holiday. Of course, even if your holiday is cheap, you might be tempted to borrow extra money. While it can be fun to have some extra money to treat yourself, you could find that it makes it much more difficult for you to be able to repay the loan if you are borrowing more money. You may also have some money of your own, perhaps in savings that you could use, rather than borrowing more money.

Will you Qualify?

It is also good to make sure that you will qualify for the loan. There are different requirements for different types of loan. With some you will need a good credit record or other things. With a guarantor loan, you will not need a good credit record but you will need someone who has a good credit record to be able to act as your guarantor. You will also have to fulfil some general rules which apply to all loan such as being ages eighteen or over and being a UK resident with a UK bank account.

Can you Afford the Repayments?

It is also really important to make sure that you check to see whether you will be able to afford the repayments. You will find that there are different requirements for different loans and so you will need to check carefully. For a guarantor loan, you will need to make monthly repayments and therefore you will need to find out how much these will be so that you can check to see whether you can afford them. With a guarantor loan if you cannot make the repayment, then your guarantor will pay it for you. However, you will not want to rely on them all the time. They will be someone that you know and you will not want them to have to keep making your payments for you. So, it is still important to make sure that you check that you are going to be able to manage the repayments because you will want to make them as often as you can manage.

Is it Worth Changing Banks to get a Better Overdraft Rate?

Banks tend to offer overdrafts to most people as part of their current account. This means that most people who have a current account actually have an overdraft which they can use if they wish to. However, the rates of the overdrafts differ between banks and you may wonder whether you should try to make sure that you are with a bank that offers a good rate of interest. There are some considerations that you should make with regards to this decision.

Money Saved

If you use your overdraft facility regularly then you will be paying out a lot of money in interest. This means that you will save some money if you can change to one with a lower interest rate. Even if the interest rate is only a little different, the savings can be quite significant if you keep your overdraft for a long period of time or use it on and off a lot. Ideally, an overdraft should only be used for emergencies and you should try not to borrow unless it is for a really good purpose. You should also compare different types of loans to make sure that you use the correct loan for the financial need that you have. Finding a cheap one is all part of this and so if you do use the overdraft a lot or expect to need it a lot in the future, then it is a good idea to consider swapping to a bank with a lower one. However, do keep a check on the rates as it is possible that they will change and that bank may not stay the cheapest and so you may need to swap again.

Hassle of Swapping

There is some hassle when you swap current accounts. The banks are supposed to work together to make it a lot easier for you, but you will still have to make various arrangements to get everything swapping over. It can be well worth it if you are going to save a significant amount of money, but if the savings will be very little or you do not even use your overdraft, then it could be worth forgetting about the idea. Calculate how much difference it will make and then you will be able to make a decision about whether it is worth it for you or not.

Other Benefits

It is also worth thinking about the other benefits that you get or do not get form your current account. Accounts can differ quite a lot in other ways as well as with regards to the overdraft interest rate. For example, the overdraft might be for different amounts of money depending on the bank. The accounts may also have other differences such as some you pay to have but receive interest and other benefits as well. There will also be differences in the way you manage the account. Some may be online, some postal and some dealt with at a branch or perhaps a mixture of some of these combinations.  You may also be concerned with the reputation of the lender and need to think about whether you want one that is well-know, that you have used before, has good reviews or comes recommended. There is a lot to consider as well as the overdraft rate itself. So, you will need to not only think about this but also consider what you think that you will need and want in a good current account and good bank and how well the banks with lower rates match up to that. It is an important decision as we tend not to change banks that often.

Should I Have Multiple Credit Cards?

Many people have a credit card and some have more than one. Having extra credit cards can be useful in some circumstances but it can also be problematic as well. It is a good idea to have a think about the pros and cons of having more than one credit card so that you can decide whether this will be the right decision for you.

Advantages of Multiple Credit Cards

  • if you have more than one credit card it means that you have more credit available for you to be able to spend. This can be very handy if you have some expensive things to buy and one card will not be enough to cover the cost of them.
  • Having multiple cards means that you can choose to use the one with the lowest interest rate. You will find that they will vary and so if you intend to use a card and not repay what is owed right away, you will find that you will be better off if you use the card that has the lowest interest rate.
  • If you need money in an emergency then it can be reassuring to know that there is a card there that you can use if you need it.

Disadvantages of Multiple Credit Cards

  • Having more money available to spend is not always a good thing for everyone. This is because there are some people that will see it as money that is available for them to use right now. They will treat themselves to lots of things and that will enable them to have lots of fun with the money. However, they will not think about the consequences and the fact that they will have to repay the money at some stage. The way cards work is that if you do not repay the money that you have borrowed on the card by a specified date, then you will be charged interest on it. Many people only pay the minimum required amount each month back, which covers the interest and just a tiny bit more. This means that their debt lasts a long time and is very expensive. Therefore, anyone that feels that they might do this, should avoid having too many credit cards.
  • It can be harder to track what you are spending when you have more than one credit card. This means that you might end up spending more than you can afford to repay. Of course, you can opt not to repay it all, but you may prefer to avoid having to pay the interest if you can. You also need to consider that you may even struggle to cover the minimum payment if you have too many cards.
  • Having lots of cards can look bad on your credit record. It might look as though you are desperate for money and that is never a good thing. Potential lenders will not look on this well and they might decide to not give you any money as a result. You may not be too worried, thinking that it is unlikely that you will need to borrow money in the future. However, it is also landlords and insurers as well as utility companies that look at your credit record. So, this could impact whether you will be able to find somewhere to love, get insurance cover or utilities. It could mean that you will have to use pre payments meters for gas and electricity which are more expensive. It may also mean that insurance cover could be dearer as well as you will be seen as a higher risk.