There are certainly highs and lows when it comes to money especially in the way we make money and sometimes suffer the lack of it. In times of money shortage, it is all too easy to turn to the loans companies in the hope of bolstering your bank account and cash flow by the injection of personal loans.

Loan companies make it all too easy to borrow money as I can personally testify to. Several years ago as I was in full time employment and a home owner in the UK, I was a prime example of the perfect candidate for secured loans in the eyes of the loans companies. So I applied for a substantial personal loan.

While my finances looked good on paper, with some equity in my home and a good regular wage, they failed to take into account my actual financial situation, or worse, turned a blind eye to a large mortgage coupled with crippling monthly council tax and utility bills which meant that most of my decent wage was taken before I could even begin to enjoy the fruits of my labours.

That all meant that repaying the loan was almost impossible and had the loan company in question done their homework properly, they would have realized this and not approved such a large loan.

The answer is for both the lender and the borrower to sit down and be realistic about the ability to repay any loan. You should also compare loans in order to get the best deal as you could save quite a bit by choosing one lender over another depending on not only their rates of interest, but also on their set-up and administration charges.

It pays to be honest about what you are doing so if you do take out a loan, you’ll be able to repay it and still have enough money left over to live.

Brought to you by Thrifty Scot

Terry Didcott
Make Money