Thursday, May 10, 2007

Loans For People With Fewer Savings

With ever demanding lifestyle and never ending needs, it is becoming increasingly hard to save at the end of the month. It may be startling enough to know that nearly one-third of the Britons failed to produce any savings during 2006.

A research from a leading bank further revealed that almost one-fifth admitted to not saving as much as they had planned for during the last year. A dreadful majority of 82 per cent said that they intend to sort out their savings in 2007. The fewer savings and demanding lifestyle has made the people rely more on personal loans rather than their own savings.

With a personal loan, you can fulfil almost any of your requirements. These multi-purpose loans cater to the wide section of society. You may be a homeowner, a tenant, self employed professional, businessman or any other interested UK resident. Following are amongst some of the most common uses of such a loan:

  • Debt consolidation – Personal loan can help you merge your multiple debts into a single and manageable debt. If your debts consist of credit card dues then you may be paying a high rate of interest. In that situation, consolidating the debts will help you save on interest payment also. Usually, the APR is low in case of a personal loan when compared to what the card companies charge.
  • Paying outstanding bills – You may have tax liability, debt instalments or any other similar debts. You can use a personal loan to repay all such debts.
  • Home Improvement – Mostly, home improvements are done on an amateur DIY (do it yourself) basis. You may need some financial help in the process.
  • Purchasing a vehicle – Most people prefer to buy a car with a personal loan. It is one of the least expensive sources for financing your car.

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