Sometime borrowing a little extra money is unavoidable but it should never leave you out of pocket. There are some forms of credit that just aren’t worth it.
With Credit still being tight for most people in the UK, there are certain lenders who will prey on the vilnerable, those who are already in debt and feeling desperate. Young people getting their hands on first credit and those who, let’s face it, have got in too deep.
Store Cards, may seem easy to obtain and look like a traditional way to get items and worry later, but unlike credit cards, they are usually linked to one shop or one group of stores, with higher APR’s than traditional credit cards. Interest usually accrues more and more because you don’t pay your balance back in full straight away.
Uncompetitive Credit Cards
Credit4everyone have listed credit cards which can help increase your Credit Worthiness, however, you should only use these cards if you can pay back the full balance, some of these cards such as the Vanquis card can cost as much as 59.9%! Be warned.
Using an Overdraft without permission
Overdrafts are not cheap at the best of time, however, an arranged overdraft can be a lot cheaper than one that’s not authorised beforehand. Bank charges and unauthorised fee’s will make paying back the overdraft harder! Speak to your bank at see if they are willing to help you before going into the red. If your account goes into the Red, go and speak with the bank, don’t hide away thinking you will deal with it soon!
Payday loans
Again, useful if a real emergency has risen, however, Payday loans can work out expensive. Txtloan for example will lend £100 for 7 days with the repayment of £110 which at first site appears to be excellent value, however, miss the repayments and charges of £20 are applied within the first 3 days and again a few days later, a one week loan repaid one month late could cost up to £200!
Money Lenders
Home Money Lenders offer easy cash loans direct to your door, collecting repayments weekly, the APR doesn’t reflect the cost of the loans as you are paying a service charge for the collections. Make sure if you are going to be taking a small cash loan you take it with responsible lenders such as Provident and not illegal money lenders. Illegal money lenders can do extreme things to get back their money and often cause a lot of heartache for families.
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