Stroud & Swindon Building Society - loan caluclator, loan calculator uk & online loan calculator

Loans - Credit Card and Personal Loan. The things to consider...

For lower amounts the Interest Free Credit Card purchase can be the better mechanism and could be viewed as free money but the danger is that you lose sight of this fact.

You need to keep an eye on when the date occurs for returning payments to clear the loan / credit card balance; if you miss this then you will incur large interest charges. The way to avoid these will be to switch to another 0% Credit Card deal but once again good planning and time management are required to not lapse and incur costs.

The interest free credit card - smaller purchases

If you are the well organised individual that keeps their finances in order; then the interest free credit card can be a very useful option when borrowing money for large purposes. It can be a clever move to keep your savings intact earning you valuable interest and use the interest free credit card as a vehicle for making the purchase. But once again you need to make sure you are aware you are taking on debt and you will need to at some stage pay to clear the amount. For further information on any of our loan products or loan caluclator, loan calculator uk or online loan calculator visit our Loans page.

Larger amounts - the personal loan or extended mortgage

When the purchases you wish to make are of the larger variety say £30,000 then a personal loan or extended mortgage can be the route to take. It is important with this method of borrowing to look at the repayments and consider whether you will be able to repay the amount you are borrowing over the repayment period. It is great having the new yacht but if you can not afford the repayments you are not going to be in a strong financial position in the future.

Before going into the Credit Card and Personal Loan market it can be useful to contact your mortgage provider to see what they can offer. It is possible that the interest rate they charge can be lower than that of a credit card or a personal loan. Make it clear that you are looking to borrow more rather than re-mortgaging against your property. But be aware, in the short term this can be cost effective but in the longer-term on the 25 years of the mortgage term, it can prove to be more expensive.

Re-mortgaging and offset mortgages

Re-mortgaging is a good source of funds for home improvements or anything that will add value to your property. But for anything not related to your home, it should be avoided.

If you have an offset mortgage, where the mortgage is offset against your savings and current account, it is possible to borrow back from your mortgage. Offset mortgages are right for people who are diligent at saving or who receive big bonuses.

Words of caution...

Is this the best choice - loan caluclator, loan calculator uk & online loan calculator?

It is always better to borrow money from your 'stashed away' savings or investment rather than borrow further money on a credit card or personal loan.

Interest rates on overdrafts can be high and it can be a better idea to find an alternative means of borrowing money. There is always the danger that you may run over your overdraft limit and this will create penalty charges on your account balance.

You should be very careful when borrowing and check if this is your best way forward financially. If a Credit Card is your chosen vehicle for borrowing then you should look at the best type of Credit Card for your needs. Store Credit Cards can be very expensive and should be avoided at all costs as interest rates are very high.

Be careful you do not lose your home with a Credit Card or Personal Loan

Secured loans should be seen as a last resort. Secured loans are where you borrow money in a loan which has your home secured against it if you do not pay. Quite simply if you find you can not pay the loan you may lose your house.

You can get further information on loans and credit cards or specifically loan caluclator, loan calculator uk & online loan calculator by selecting the Loans option from our menu.

You will find our branches at the following locations: Clifton, Bristol, Keynsham, Bath, Frome, Chipping Sodbury, Dursley, Lydney, Stonehouse, Stroud, Swindon, Trowbridge, Bradford On Avon, Melksham, Wootten Basset, Highworth, Cirencester, Tetbury, Nailsworth, Stonehouse, Gloucester & Cheltenham all branches will assist in the following loans products loan caluclator loan calculator uk & online loan calculator.

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