Fusion Money and Loans

Personal finance information and tips.

From the blog

Is a Payday Loan the Best Option for me?

If we need money quickly then it can feel that a payday loan is the only option that we have. However, some people feel that they would like to look at all of the options before taking one out. This is sensible and it is good to understand your situation and how the loan works to make sure that it will work well for you. So find out what payday loans are for and whether they will suit your need.

Who is a payday loan for?
Payday loans were designed to make money available for those people that have a poor credit record and therefore have very few other borrowing options. This means that anyone is accepted to take out a payday loan as long as they have a bank account and an income, are resident in the UK and over 18. This means that the money is available for most people.

Payday loans can also be arranged very quickly. It can take anything for a few hours to a few days to organise the loan. This means that if you need the money quickly then this can be a good option for you. You will be able to get the money you need without the usual delay that you will have if you apply for a loan from a conventional lender.

This means that there are two types of people that a payday loan is aimed at. Those that cannot borrow money anywhere else and those that need money quickly. This means that if you are either of these situations then it could be that a payday loan is right for you.

Alternative options
It is always wise to think about all of your options when you are looking to borrow money. Although the payday loan may seem like the perfect solution to your problems, it is worth checking to make sure that there are not any other solutions that might be as good or even a bit better.

It is therefore worth starting by looking to see whether there is any other type of borrowing that might work for you. Try to look at all options, not just the conventional ones and see what is there. Do not just compare the costs as although this is an important aspect of borrowing there are other things that you need to consider as well. Think about the additional costs added on if you cannot repay on time, how good the customer service is, how flexible the loan is and the reputation of the company. Think about what you would like in a perfect lender and see how closely the different options you have fits the mark. If you think that you are unlikely to be accepted for other forms of borrowing it could still be worth getting in touch with the lender to find out. They will know whether it is worth you applying or a waste of time as they will know what criteria will be used to decide, so you can explore those options as well.

Some people will borrow money even if they have savings. This is an expensive compromise to make as if you used savings instead you would not have to pay any interest and you can repay it to your savings account on your own terms.

Some people will borrow money to pay for things that they can do without. This means that they have the expense and stress of borrowing when it is not necessary. Think about whether you really need to borrow the money or whether you can cut down spending in some other area to free up the money that you need. Payday loans were set up to pay for emergencies not to fund general spending which is another reason why it is best to just use them for this purpose.

The main thing is not to panic. If we need money in a hurry then it can be tempting to just go for the first loan that is offered to us. It is wise to try to be calm and spend a bit of time looking through the options so that we do not make a decision that we regret. There will be options available, even if you are just choosing between payday loan companies. It is worth exploring them all and comparing them so that you can find the best option for you in your specific circumstance. It will not necessarily have to take that long either and even if you just do a small amount of research; at leats you will know that you have had a go and found the best solution that you could with the time that you had. It is too easy to rush and then regret the decision that you have made.

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Should I Get a Personal Loan to Help my Children Through University?

There are many parents these days that worry about the costs of their children’s university degrees. Although the student loan will cover all of the fees and some of the maintenance costs, higher earners will not get so much for their children and even those that get the full amount may find that it is not enough to manage on. This means that they may have to think about how they will be able to afford to help their children out if they want to go to university. There are many options available but if parents have no savings, no chances of increasing their income and the students will not be able to work then it could be that a loan might seem to be the only option.

Advantages of a Personal Loan
A personal is unsecured which means that it is available for most people to be able to take out. This means that you do not need to be a home owner or have other assets in order to secure one. You will repay in monthly instalments which means that you can spread the cost and hopefully you will be able to set up the repayment term so that the instalments are small enough for you to manage. It is worth bearing in mind though that the longer the term, the more expensive the loan, so try to repay it as soon as you can. If parents get a loan it means that there is less pressure on the children to have to find the money so they can concentrate on their studies rather than having to work and earn money that way. Parents are likely to be on higher incomes and so can borrow a significant amount, whereas the amount that their children can earn is likely to be small and so may not be significant enough to allow them to save very much in comparison. Parents may even decide to get the loan out and ask the children to repay them once they start working, so they will get their money back eventually. However, most parents will be happy to support their children if they can and help them to get the best possible start in life that they can.

It is worth looking at the alternatives as well though, particularly as some people will not be able to take out a loan, possibly due to a poor credit record or not enough income to make the repayments.

It could be better for school leavers to enter the workplace full-time for a few years before going to university. If they live at home they will be able to save up what they earn and put it aside for university. Some people feel that if someone does not go to university at 18 then they will never go but this is not going to be the case for someone who is really committed to getting a degree or towards a particular career path. Life may get in the way of study but again, if you are really committed you would do it. Also working for a while may change your mind about what career you want to follow. This would mean that you would not have wasted your opportunity to study for free, by doing something that you do not use, but you can choose a course that is much more suited to what you want to do.

Another option is for the student to work full time in the holidays. They might be able to find temping work, short contracts or jobs with different shifts so that they can earn money then. Usually university students are not expected to work during the holidays, particularly during the summer and so this will be a good opportunity to earn some money.

Some parents start saving up money form when their children are born or when they know that they are going to University in order to pay for it that way. This is something well worth trying but it is not an option for everyone. Some people will not have the money available to save or their children will not make up their mind about university until it is too late to be able to start saving.

There are other loan types as well and it is good to compare them and see which might be the best for you. The costs will vary as well as the availability so see what is there for you and then you can compare prices to see which loan type might work well. If you do decide to take out a personal loan then make sure that you compare the different lenders so that you get the best loan for you. Remember to not just look at interest rate but at all costs and the features that they offer too, so that you get the best value for money that you can.

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