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The Basics of Credit Card Balance Transfers
There simply isnt one of us out there who enjoys paying the high interest rates on credit card balances, no matter how much money you have in the bank or make at your place of employment. I dont know about you, but I always promise myself that whatever I charge during a billing cycle, I will pay off when the bill comes due. But when I open up the envelope from my credit card company, I realize that there are many other places my money could be well spent- and that means my balance doesnt get paid in full, thus resulting in loads of pounds paid in interest. Thats why so many residents of the UK are taking advantage of the financial benefits of transferring their balances on a high rate credit cards to one with significantly lower (or even 0%) interest.
Credit card companies are in a desperate fight for your business, so they offer alluring programs (such as 0% interest on balance transfers for 6 months or so) so that youll take your old credit card balance and place it on one of their new cards. This is all done with the hopes that you will use your new credit card instead of your old one- hence the new company generates any interest on new purchases, not to mention the charges on your transferred balance when the special program expires. They want you to give them your business, never look back, and never again transfer your balance to another credit card company. Their begging can work to your advantage as long as you understand the basics.
There are mainly two types of credit card balance transfers, the first of which involves a very low interest rate, usually 0%, for a fixed amount of time, perhaps from 5 to 9 months. At the expiration of this time period, the companys normal interest rate charges will apply, generally upwards of 15% or more. So be sure to stay on your toes, keep accurate records and switch your balances when the introductory rates expire to get the most out of these enticing rates and programs.
The other type of credit card balance transfers involves a low interest rate, maybe 5% or less, but maintains this same, nominal rate for the entire time required to pay off the transferred balance. Any new purchases will be subject to the cards regular, significantly higher rate (again, around 15% or so), but if you have the self-discipline to not add any additional charges to this card, it can save the hassle of transferring your balances at every 6-month mark and still save you hundreds (or even thousands) of pounds over the life of your credit card balance.
Introduction to Simple Pathway for Secured Loans
Secured loans are backed by some asset of the borrower as security. The duration of a Secured Loan can be just as long-term as most of the mortgage deals in the market. The amount of loan depends on the assets you are putting up. Secured loans can be taken to set up a new business where you are sure that you will be able to maintain a flow of the monthly installments.
The installments of secured loans can last up to three decades. The interest rates of secured loans are very low. Before you decide to go for a secured loan, be absolutely sure that you will be able to handle the repayments, on time and in full.
Loans secured against property that is already mortgaged are known as second charges, whereas loans secured against a property owned outright with no existing mortgage in place are known as first charges. You can be asked to pay a penalty incase you end up paying your loan earlier than the due time. This has to be checked in the policy of the lender.
Secured loans are much easier to obtain than unsecured loans. There is because there is a sense of security by the asset kept with the lender. In case the borrower is unable to pay, the assets form a protection for the amount lent by the lender. You need to be employed before taking secured loan to pay your monthly installments. They are also useful for larger amounts or where the applicant requires a longer repayment period.
Lenders charge interest on the amount you borrow, which is referred to as the A.P.R (Annual Percentage Rate). However, if you wish to shorten the payback period, you can make extra payments on the loan towards a shorter term.
Secured Loans can be taken from lending institutions either by visiting one of their branches, through a written application or through online websites. There are a lot of opportunities available on the net. However, a proper study should be done on the best deal that is being offered. It will help you to compare the A.P.Rs of different loans, as this is a good way to determine how competitive they are.
Another fact to be kept in mind is that a lender will check for previous background before accepting to give you the loan. Secured Loans are easy to get and does not require any complex procedure.