A friend in disguise

There always comes a time in every person's life when he faces a financial trouble. At that time it becomes very important to avail money at any cost to eliminate all your worries regarding to the problem of immediate finance. But it happens most of the time when the person in need requires the money at a very short notice. At that time, an unsecured loans comes to the rescue of that person.

As the name itself suggests, unsecured loans are the loans that are unsecured in their basic nature. In other words, these are the loans that can be availed in no time and requires no asset on behalf of the borrower to be pledged as security with the lender. But one important thing that needs to be kept in mind is that though these loans are very easily available but in return the borrowers of these loans had to repay back the amount loaned at a very high rate of interest.

As said earlier the best feature of availing these unsecured loans is that it requires no asset to be pledged with lender as security. Thus person suffering from poor credit score can also supply for these loans. If the person in question is still finding it difficult to avail these loans, he can certainly take help of the Internet. By applying Online, the borrower will not only save his time and money but also will be able to get the best deal of the lot. Also the loan aspirant need not to go through the tedious process of documentation for availing these loans. Not only that, it does not matter for what legal reason the borrower is availing this loan, it is entirely up to the borrower.

At the end, it would be appropriate to say that unsecured loans are the best friends of a man when he is need of urgent money.

Unsecured loans versus credit cards

At a time when people are finding it hard to honour their repayment commitments, wouldn’t it be wise if they start looking for some cheap source of finance. I think that the recent rise in interest rate has made the matter worse for the borrowers.

Still, we find that many people stick to their age old habit of transaction through credit cards. It is well established that most credit card companies charge an exorbitant rate of interest. That’s why sometimes I wonder if some people have so much money to waste.
In the recent past, the UK economy has seen a huge rise in the number of county court judgements, highlighting the level of bad debt prevalent in the society.

Unsecured loans are far better than credit cards or store cards since they involve less interest rate. If you think that credit cards are better just because they do not involve any annual fee or offer you Zero per cent schemes, think again. According to RK Hammer, a bank-card advisory firm in the UK, credit card companies took in $13 billion in fees last year, not counting $12 billion in late fees. So, even if your credit card issuer doesn't levy an annual fee, the sponsor has surely loaded it with some other convenient ways so that extra amount could be charged from you.

In comparison to credit card bills, cheap unsecured loans are much better. You can get unsecured loans at a rate that usually varies from 7 to 40 per cent APR.