Don J has decided to relocate his family of four from the apartment with two bedrooms they’ve lived in for the past couple of years to a home with three bedrooms. But, he’s still not in a position to purchase a house in full, so he looks at the “rent-to-buy” scenario. Don decides that for this plan to succeed, he can use the extra money to supplement the family’s income in the initial phase.
Through the time, Susan M has acquired an enormous amount of debt to pay for various expenses (home renovations, a new vehicle, continuing studies) and she is now making several payments every month. Susan M is thinking that if she could combine the payments into one which is a lot more easier to manage her finances.
The wife of Fred G recently underwent an emergency procedure for a severe medical issue. The procedure went smoothly, however Fred must determine how to pay for the huge medical bill that’s now a portion of their ongoing expenses.
Below are three scenarios in where the possibility of a personal loan is the best option. Presently there are loans of all kinds are available that could provide a solution to a variety of issues, so long as the borrower remembers that there must be provisions to pay back the loan. When this is realized, Loan Calculator Australia can demonstrate the ways a personal loan can be the solution to getting more financial independence and flexibility needed to achieve one’s goals or solve your issues.
To cover all types of personal loan there are standard terms determined by the lender, and then agreed by the borrower in relation to the loan they choose to take:
Secured or Unsecured Loan
The secured loan entrusts an asset of the borrower’s to be used as collateral that can be reclaimed from the loan lender should it be in insolvency. A secured loan is less costly than a loan that is unsecured because the lender is more of an assurance of receiving something to repay the loan in case it is not paid back. If a loan is unsecured the lender is without a loan in the event that the borrower fails to repay. Consequently the lender is charged higher fees and rates of interest for this kind of loan.
Fixed or Variable Rate Loans
Variable, also known as adjustable, rate loans are loans that have interest rates that are fluctuating depending on the general financial market factors which result in different rates of payment during the loan for the borrower. If marketing influences dictate low interest rates then lower repayments for the borrower will outcome. However, a negative effect could occur when interest rates start to rise which will increase the due amount. Another benefit of the variable rate loan is that the ability to pay early without penalty for prepayment.
Fixed rate loans is locked in the amount of payment that is specified and the amount that is that is paid by the borrower will remain the same throughout the duration of the loan, regardless of what happens to the interest rate overall. This makes it easier to budgeting, but also prevents the borrower from repaying the loan in advance without being penalized for prepayment.
The lender conducts income verifications and credit checks prior to making the loan offer, that allows them to determine whether they should pre-approve loans to certain customers. Although a pre-approved loan offer indicates that the lending institution is evaluating the borrower’s suitability to receive a loan however, it does not assure whether the loan can be granted. The lender will conduct an extensive check of the credit score of the borrower prior to making a loan decision.
Debt Consolidation Loans
Consolidation loans for debt can ease your life by giving the borrower one loan that can pay for several loans, leaving the borrower with only one loan to pay.
Personal Loan Calculator [http://www.personalloancalculator.com.au/] offers a host of personal loan calculators created for the sole purpose of assisting people with the assessment of all their personal financial circumstances and calculations.