Borrowing from your employer.
It may be possible to get a loan from your employer. Large firms have set policies for this. Ask your personnel dept. If you work for a smaller firm, just ask the boss.
Employers will usually charge a much lower rate of interest. But taking out a loan from them may tie you down to the job more than you'd like.
If you leave you'll probably have to pay the loan back there and then - which might mean re borrowing at a higher rate than you'd bargained on.
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Use your savings instead?
If you really need the money it's considered a better idea to dip into your savings instead of taking out a loan.
This is because it'll cost you a lot less in the long run. If you take out a loan you can end up paying back double what you borrowed.
You're very unlikely to make as much money from your savings if you left them where they are.
OK so it might seem more comforting to have something saved up in case of emergencies. But, at the end of the day, you'll have more put aside by not having spent as much on the loan.
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Just say no.
Consider whether you really do need that brand new car or whatever. Is it worth the inflated cost of borrowing? To read how much a loan can really cost you see https://www.moneysorter.co.uk/loan/loan_alternatives.html#tbyb1Do you really need the loan?
Three in five people reportedly admit getting into debt for something they later wish they hadn't bought.
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Payment protection insurance
Most lenders offer loan insurance schemes to help you out in the event of ill health, unemployment etc. The terms of cover will vary greatly so check the small print.
Think of some eventualities that may happen to you and ask the lender whether their insurance would cover you.
Make a note of the date you called and who you spoke to (just in case they deny what you were told, which sadly seems an increasingly common practice).
Make sure you're not already covered for this through another insurance policy.
Some lenders will give you lower rates if you take out this type of insurance with them. But, added to the repayments, it's highly unlikely it'll be cheaper than not taking it out at all.
Shop around for loan insurance as you're bound to find something cheaper if it's not "bundled" with the loan.
On the whole these policies are seen as a waste of money. Usually the small print makes them irrelevant when you come to claim. "Heart attack? No Sir that's not one of the serious illnesses on our list. Didn't you read the terms? Oh the print was too small? Sorry..."