You’d think there’d be easier ways for Britney Spears to raise some cash but it seems the struggling starlet is plumbing new depths.
It’s been claimed she intends to film a confession telling all of how she "lost it" last week and held her two sons hostage. The plan is then to sell the video to the highest bidder and net a small fortune.
Fortunately, most of us haven’t taken our children hostage and so the Spears avenue of personal finance is thankfully closed. However, a healthy cash injection may be exactly what is required for many and with experts predicting a further cut in interest rates from the Bank of England, a loan may be just the medicine.
MoneyExpert.com gives some top advice for those looking to borrow.
Keep your eyes peeled
After steadily pushing it up and then leaving it untouched the Bank of England finally decided to cut the bank rate at the end of last year. It now stands at 5.5% which although not massively high in the grand scheme of things is still pretty steep for recent years, and with talk of a major economic downturn many economists have been calling for a further cut with the Monetary Policy Committee announcing its decision on Thursday.
If the Bank of England does decide to drop the rate it’s likely that some loan providers will follow suit. Though many stuck to their guns after the last cut it will be tougher for them to do so if the Bank’s rate continues to drop, so you’d be well advised to be on the look out for any new deals. Click here to compare loans any time you want.
One lender that did react to the last rate change was Sainsbury’s Bank now offering a 6.5% typical APR for online loan applications over £5,000.
Comparing loan rates can be a somewhat confusing business with lenders advertising typical APRs that don’t necessarily apply to everyone. If a typical APR is quoted as 6.5% that may well depend on you having a good credit rating and if you don’t you could find yourself getting a much higher rate.
What’s more if you apply for a loan and don’t get it because your credit history isn’t entirely up to scratch you’ll be marked down for future applications. Once on the slippery slope you’ll find it harder and harder to get the best rates available.
MoneyExpert.com offers a free credit profiling service which helps people to understand your likely credit rating by answering simple questions about your credit history. You’ll then be recommended products from financial providers who lend to consumers with similar profiles, which lessens the likelihood of rejection.
Know what you need
Finally, it’s worth remembering that rates vary quite considerably depending on how much it is you want to borrow.
Research by MoneyExpert.com at the end of 2007 found that average rates on unsecured loans of £5,000 had reached 9.5 per cent, but that figure drops to below 8 per cent for larger loans of around £7,500.
Consequently it may well be worth consolidating all your debts into one large loan. Not only will you rationalise your repayments but you’re more likely to get the best available rate. Use our Debt Consolidation Calculator to work out how much to borrow.
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