Those of us on average incomes have at least one thing in common — there are times when our income will not stretch far enough to meet a pressing need. This is not to say we are extravagant or careless with our money. It is certainly not to say we should work more or harder, because many homes have dual incomes and still we have the it-won’t-stretch-far-enough problem.
Many good reason why we need a loan
No, it is simply a fact of life that there will be times when we just haven’t got the cash in hand that we need. Usually because we get hit unexpectedly with a sudden, large expense. Maybe illness strikes and you or the wife, or one of the children, must have an operation that the National Health can only give you next year. You will need to find a way to pay for a private hospital. Or perhaps the car finally breaks down, and although you had always intended to be putting something aside to replace it, you haven’t, and now you must get another one and you just don’t have enough for even a late-model, second hand vehicle. Then there is your daughter’s wedding announcement, something you and your wife a delighted to hear but are quite unable to quickly find the money to pay for.
All these are perfectly legitimate, reasonable, ordinary expenses that we are often caught short on simply because our income is average. Well, the good news is that there are several ways you can get that quick money.
An easy way to get fast cash
Take secured loans, for example. These are usually the ‘second mortgages’ or the ‘homeowner loans’ you hear about. They’re referred to like this because the borrower gets his loan by agreeing to put up his home as a security against his ability to repay. If the unexpected happens, and he gets into unforeseen difficulties, the lender can sell the house and get his money back.
Of course this does not often happen. Because the lender will be careful when he lends, and you, the borrower, will be careful about meeting all the repayment conditions you agreed to. A secured loan is almost always a sweet deal that makes both parties happy. So, if you are facing an expense and need something like a secured loan, then go ahead and explore your options in the lending sector. You will quickly discover there are two Golden Rules that apply.
Two Golden Rules when you borrow
First, take up one of these loans from a position of strength. Don’t take one if you have several other loans and a re almost struggling to make the repayments on them. Imagine what would happen if you added a secured loan to your borrowings and then found your income was affected in some way. You would have to either give up some of the other loans — which means returning the items you purchased earlier. Or have the pain of losing your home and having to buy another one, in another part of your city. Both are too disruptive to even contemplate! So take out a secured loan when you have no other major loans to repay and your income is steady and more or less assured.
Second, talk to more than one lender. When you take your income and asset to a lender he will almost certainly offer you a loan. Because of the security you ring to the negotiation. And if you take your request for a loan to more than one lender you will find they will all line up with competing offers! Suddenly you are in demand by lenders who ware looking for safe investments. (And a well secured loan on a good home is certainly a good investment from their perspective!) So apply this Golden Rule and go and find a broker to help you. Get on the Internet and find someone who will advise you and help you compare the various interest rates and terms you will be offered by the lenders.
Benefit from a helpful web site
You should definitely approach lenders supported by a good broker or a helpful web site. They will set you up to secure the loan you need on the most favourable terms.