If you have good equity in your property and would like or need a new kitchen, bathroom, etc… then a home improvement loan may be worthwhile, especially if you are planning to stay in your property for some time to come.

If however you are just improving your home because you think it will increase the property value, then you really must look at what you are improving, if it is structural work, such as a new roof, or building work then it maybe worthwhile and you may gain your money spent back by selling.

For a new bathroom or kitchen, unless your old one is desperately falling apart, you should hold off because everyone’s chose of style and design is different, you don’t want to spend thousands on internal features which may then be ripped out as soon as the new people move in; in this case keep your firmly in your pocket.

Many people are struggling to keep their heads above water in the current economic downturn. Some have even had to take cut in pay, while their financial commitments have gone up and up.

One solution to the problem is to try and increase your income with extra work. If you already work full-time, you may be able to find a part-time evening job, say, working behind the bar in a pub, stocking supermarket shelves, or, perhaps, office cleaning; these are all jobs that can be carried out in the evenings, and will supplement the money already coming into the household.

Selling unwanted items via an online auction site, is one way of increasing your income. First of all, look around your own home to see if there are any unwanted items. Most families have things stored in attics and spare rooms that will probably never be used again. Start listing them, then research the auction sites to find out what is selling, and the prices they sell for. Of course, no-one has an inexhaustible supply of goods, so you could try asking around other family members, to see if they have items they no longer need.

For those people who are skilled at crafts such as knitting, crochet, sewing, card-making and so on, there are sites available nowadays that enable you to open your own online shop, to sell the items you make like Etsy. There is usually a small fee for selling, but you will not have to find premises or staff, so the earnings could be quite considerable. Similarly, if you are good at writing verse and poems, or drawing and painting, you may be able to offer your work to greetings-card companies. You will generally have to write to ask the company for their guidelines first, then submit a sample of your work.

All these are ways to potentially increase your income. By trying one that suits you, you may be surprised at how much extra money you could earn.

1) Either money or items that you have borrowed from someone, may it be an individual, group or organization

2) Consists of relatively high interest. If interest is low, it is likely more of someone doing a favor to you.

3) The creditor has a motive for loaning, mainly getting more interest or bonds.

4) Loan is usually taken to do something constructive and have long term benefits, example setting up business, renovating houses, furthering education, etc.

5) Personal loan is more flexible and can be used for personal consumption benefits

6) Unsecured personal loans are not productive in long run because they have very high interest rate and only very high risk investment can offset this interest.

7) Personal loans should be taken at the appropriate times to invest in long term investments, example real estates or shares for greater profits.

Loans should be taken when purchasing expensive necessity, for example buying cars. However, aim for low interest loans.

The APR of a student loan is the same as the rate of inflation. So effectively, the size of your debt never increases. If your debt at the end of your time as a student will buy you a small car, then after 10 years, although the amount of money may have increased it will still buy you a small car, as the price of the car will have increased at the same rate.

No other bank loan will have such a low APR, because the student loans company does not make a profit while all other loan providers must.

A student loan is the wisest debt to have if you must have one. After you graduate, it’s up to you to make sure you get the help and advice you need to get out of debt.

I like to be able to pay my own way, but a student loan was deemed to be the answers to all evils and wouldn’tt be any hassle at all. For me its just a big mill stone around my neck and its a stress that I could live without when I’m trying to find a decent job. In truth I never spent it on anything worthwhile, I borrowed more than I should of to pay the course materials and the day to day living and squandered more of it than I should of done. I am truly paying the price for it now.

Without a student loan I would not be able to keep a roof over my head as I am studying away from home. I would not be able to afford the course materials and I would be eating pot noodles seven days a week rather the three days a week I am eating them just now.

I understand that I will have to pay it back one day, but by that time I will be in a good job with a reasonable salary and I will be in a position to do so. The long term nature and the low interest rate of the loan makes this an ideal way for me to get through my studies without putting myself into dangerous debt elsewhere.

The first way to buffer against this is to save regularly and have a savings pot for when things go wrong. At least part of the saving should be instant access for when money is needed urgently, as I found out when my cooker died! Being debt free doesn’t have to mean no credit cards.

Many credit card offer a percentage cash back for using them and as long as the balance is paid off in full every money this will save you money rather than charging you interest.

Don’t forget those insurances you pay every month either, if you drop the iron on the carpet (as i did in december) then you can probably claim it off the house insurance if you have accidental cover.

Mortgage
Our mortgage is the biggest loan any of us will be personally asking the nice bank manager for. I think that 100% mortgages are a bad idea as they give you 0% equity in your property for the first several years. Also, if there is any down turn in the market you could find yourself in a negative equity situation. This means that if you sell your house, the amount realized from the sale would not cover the amount you owe. No one wants to have to pay for a house that they no longer live in. Many people pay a little extra off their mortgage every month. This is a great idea as it reduces both the amount of the original debt & the interest that you are charged. You are also reducing the term of your mortgage.
I think that it is important for people to take the time & look for the best mortgage deal that they can get. Its now easy enough to change your mortgage provider & can often make a considerable difference to your interest rate.

Credit Cards / Store Cards
Unless you can afford to fully repay the amount owed every month I think that cards are the easiest way to end up in debt. The interest rates are high & it is far too easy to charge items to the card either online or in shops, restaurants, bars etc.
If you find yourself with large card debts cancel your cards & transfer your balance to a new card. There are lots of 0% interest for the first x months offers. This will give you breathing space to reduce the debt without the interest charges.

Holiday / Car / Wedding Loans
The golden rule should be that if you cant afford to pay for it outright then you cant afford it.
Lenders are giving out loans far too easily. There is nothing wrong with saving for a few months in a high interest account & then buying your car or going on your holiday. Most people are surprised at how quickly it adds up & once you are in the habit of saving it become easier.