Tag Archives: circumstances
Taking Out Loans For Travel
If you want to go on holiday but cannot afford the large payment in one go, then you might want to think about taking out a loan for travel purposes. Many people never get to travel to the places they want because of a lack of current cash flow. However, more and more companies are offering loans specifically for travel and holidays. If you want to know more about these holiday loans, then here are some tips about taking out a loan for travel purposes.
What are the costs?
Travel loans are a form of personal unsecured loan, although you can also get secured travel loans in some circumstances. You can usually borrow between £1,000 and £25,000, depending on your circumstances and how much you need to borrow. The length of repayment is shorter than traditional unsecured loans, with typical terms being between 1 and 4 years. You pay back the loan monthly as you would any other loan. Interest rates are fairly competitive, and range between 7 and 10%.
Why use a travel loan?
There are many reasons why you might want to use a travel loan, even if you could afford the holiday with your savings. Many holidays require a large fee up-front in order to secure the booking, and this can be a strain on anyones finances. Getting a travel loan will allow you to pay for all the associated costs of the holiday whilst still having enough money to live right now. A travel loan can allow you to travel to the places you have always dreamed of going, but thought you would never go to because you couldnt save enough money at once.
Travel benefits
Another advantage of some travel loans is that they come with added travel benefits. Some loans include items such as free travel insurance or possible discounts on some holidays, depending on which lender you use. If these offers can help reduce the cost of your holiday, then it might be worth checking out the loan.
Who provides travel loans?
Travel loans can be got through your normal bank, or through travel agents who have teamed up with lenders to offer travel loans. There are a variety of loans available, and it pays to shop around to find the one with the best features and rates to suit your needs.
Why not a normal loan?
Getting a travel loan is slightly different to getting a regular unsecured loan, but is it better? Well, that depends on your circumstances and how much you need to borrow. Travel loans are dedicated to travel and holidays, and will help you get a better deal on your holiday. However, they have short loan terms, so if you want a longer term then you might want to go for a normal unsecured loan. In general, if you can afford to pay back the travel loan in the shorter term, then it will save you money and help you get the holiday you always wanted.
What to Include in a Loan Modification Hardship Letter – Helpful Advice to Getting Approval
The loan modification hardship letter is often thought of to be the most difficult part of applying for a loan modification. Not only is there a large amount of pressure on the hardship letter itself, but certain information needs to be included while other information should be avoided.
Because of the need to write the loan modification hardship letter, many homeowners get discouraged. But keep the following points in mind and you’ll be writing the perfect letter to send to your lender with ease:
At the start of the letter, be sure to state that you’re writing the letter to supplement your application. This can easily be done by using a sentence like “I am writing/sending this letter to support/explain my application for loan/mortgage modification.”
The hardship letter needs to include any circumstances leading to your current financial hardship. Some examples of circumstances would be: being laid off or demoted, or loss of a cosigner or spouse. Besides these circumstances, there are several that any lender will accept. Lenders understand that life happens and there are just some situations you cannot get out of easily, if at all.
Explain why your current interest rate is unmanageable for you. This is different from circumstances in that you explain what you’ve done to try to accommodate the rate, but can’t find the means to do so. A rising interest rate on the same budget that you’ve had for a long time is also means for a loan modification.
Before writing the letter, come up with a budget or plan that you’re going to use to handle your expenses. Explain the main points of your budget or plan in your hardship letter. This shows that you are going to try to make changes to keep in your home and on your feet.
Including the interest rate you’re looking for in your loan modification hardship letter cannot hurt your chances for approval. And if you’re approved, you may even get that rate. Just be sure that it is reasonable and explain why that rate works for you.
Somewhere near the end of the letter be sure to include your intent to stay in your home and work with your lender. They don’t want you to go into foreclosure, but they do not want to give assistance to someone who is not going to make an effort either.
These are the main points you should include in your loan modification hardship letter to get the best results. A clear, concise, and professional letter will get you that much closer to a modification.