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| borrowing money information | ||||
| why borrow money? | ||||
| Most people borrow money at some time or other in their life. There is nothing wrong with borrowing money as long as the borrowing is carefully managed. Generally people borrow money because their income is less than their expenditure at a particular time. They may have a lot of bills that they need to pay and need cash to pay them. However, it is important to ensure that the borrowing is carefully managed so that the amount borrowed can be paid back in a sensible way within a reasonable time. | ||||
| where can you borrow money from? | ||||
| Money can be borrowed from a variety of sources. | ||||
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Banks and Building Societies The major banks and building societies all offer loans and they are reasonably easy to apply for, sometimes over the internet |
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Credit Unions The FSA leaflet, reproduced below, gives information about borrowing from Credit Unions. |
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“Loan Sharks”
Loan sharks are unauthorised and unregulated people who will loan money to people who generally cannot get money from elsewhere and are vulnerable to offers of help that will prove expensive in the medium to long term. They will generally lend money that has to be repaid at a very high rate of interest and while short term problems can be resolved it is likely that longer term problems of having to repay vast sums will develop. For information on loan sharks have a look at the Citizens Advice Bureau for Scotland: www.cas.org.uk |
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Credit card companies Most credit card companies allow money to be borrowed relatively easily. Each cardholder will have a limit on the amount of money they can borrow. However, always check the interest rate on repayments as they can sometimes be very high and vary considerably from card to card. |
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Friends It may be possible to borrow money from friends and family often at a very low rate of interest, or even without interest. If you do this always make sure both you and they are very clear about when the money has to be repaid and what interest, if any, will be repayable. It is a good idea to write this down so that you both have a copy. |
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