Being a resident of UK, do you have any idea that how much you can reduce the cost of your personal loans in the UK market? Well, it can be done easily done by repaying the loan early, given you have to bear extra charges for doing so. Nowadays personal loans are being offered by the banks and non-financial institutions with cheap interest rates (applicable for the range between £7,600 – £15,500).
It is evident that most of the borrowers in the UK struggle to pay off the debt. Are you also one of them? If so then no need to worry as I am going to provide some genuine solutions through which you can minimize your cost of personal loans in the UK.
You should consider switching to another loan provider
Well, when you are the payer you will always look for your convenience. Right? You can find a deal which offers you a low rate of interest and which also take less time to repay the loan amount. If not then you can also negotiate with your lender to lower down the terms of your loan.
So, if you want then you can also take this route, but at the same time, it is also important to note that under any circumstances you should not settle for a deal which doesn’t offer you the opportunity to pay back the loan within a short period of time.
Repay the loans with your savings
This can also be another choice to lower down your burden of personal loans. You can repay your outstanding loans through your savings instead of taking another loan to repay the first one. It also makes sense as it will protect you from facing penalties and of course, it will minimize the cost of personal loans for you.
You can opt for a Debt Consolidation scheme
The schemes of debt consolidation are more attractive and comfortable as the rate of interest and repayments modes are offered for less. If someone opts for a debt consolidation fund or scheme, then it is important to be cautious because in a way he/she will risk their property or home to the lender if they fail to repay the amount borrowed.
It is also important to have a thorough assessment of your financial capabilities, and it will help you to get a broad picture because debt consolidation might take you out of current debt but it can also inter you deeper into borrowing cycle. If you are confident that you can manage with the debt consolidation, then you should definitely proceed.
Do cash withdrawals using your credit card
You can also go with the cash advance feature of your credit card, but the problem related with this is that you might be not well aware with the discipline of repayment. And you will end up with an unsettled balance that will get inflated only because of high-interest rates.
It is evident that most of the borrowers in the UK takes a personal loan instead of credit cards because they are less expensive. For an instance, cash advance through your credit card is 3% and in order to use this percentage you have to withdraw £100 (at least). In this way, a person can repay his/her personal loan faster but in addition, he/she will be left with an even bigger balance to repay with the use of credit card.
So, these are some valuable tips that can help to minimize the cost of personal loans in the UK and hope this post was useful for borrowers out there in the UK.
