KIRSTY APP - Borrowing Beware Of The Wolf In Sheep's Clothing

A secured loan can be one wolf. Some people imagine that this expression means that the loan is in some way safer for you, the borrower. It can be just the opposite. The lender is inviting you .to risk losing the roof over your head to make sure he can get his money back if you fail to keep up your regular repayments. He can take you to court, making a claim on the proceeds from a sale of your assets - notably your home. Be very sure that you can meet the repayments before offering your house or flat as security for a loan.

Then there are loans for paying off other debts. These are often referred to as consolidation loans. Although they may offer the apparent immediate advantage of paying off several awkward debts, replacing them with a single regular repayment, if you take one on you may well be exchanging several unsecured loans for a new loan with your home as security (many advertisements say `Only home-owners eligible' or 'Sorry, no tenants'). Only take this type of loan on if you are absolutely sure you can meet all the repayments on time.

Remember that banks offer secured loans. You should talk to your bank before committing yourself to any home-owners loan advertised in the press. Compare the terms of various types and be sure you get the best deal.

Try www.nationaldebtline.co.uk first or call 0808 808 4000.




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Borrowing Credit Vetting

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