Since the boom times, loans have been harder to find. Banks and high street lenders will only lend money to those with the finest of credit records and so if you’re seeking some money, it’s all to easy to give up hope.
Out of bad times, always comes good though, right? Well, yes in a way, that’s exactly what happens.
Various alternatives to normal loans have popped up recently, and the UK has seen a fairly significant influx in alternative finance products. Payday type loans are one of the main winners at the moment. The premise for these products is that you can borrow small amounts of money until your next payday – more people qualify for this type of credit simply because it’s less risky for the lender. If the lender loses £100 on every other customer, it’s a lot easier to bear than losing £5000 every other time! Companies such as Wonga specialize in these loan products.
There’s also a new type of loan, called guarantor loans. These types of loans have been available in the US for a while, but fresh breed of them are popping up in the UK. Guarantor Loans Company is one of the main providers offering these loans at the moment. They seem to bringing these loans to the fore-front by offering innovations such as full online applications and a range of products that can suit different guarantors and applicants alike.
There are also other types of alternative finance such as debt management plans – although these aren’t finance products as such, they are designed to help people get out of financial difficulty. The debt management company will normally set up a financial plan between the debtor and his/her creditors, usually freezing the debt interest is part of the plan. This allows the debtor to make lower monthly payments and pay off their debts whilst avoiding high interest charges.
So there you have it; there’s plenty of loan options still available. You just have to look for them and find one that’s suited to your needs.