Someone you owe money to
(a 'creditor') can take a
County Court action against
you to claim the money. If
you pay the amount
outstanding, you can avoid a
hearing or judgment. If not,
there'll be a simple court
hearing in private. You can
attend if you wish, or just
send the information the
court asks for by post.
Most of us at some time require a loan and there are many
different types to choose from. The challenge is finding the
best one to suits your needs.
Loans fall into two categories - unsecured personal loans or
secured loans.
Unsecured personal loan This is a personal loan, available from a bank, building
society or other finance company, without security. A lump
sum will be loaned in return for agreeing to make regular
repayments, usually by bank direct debit. Personal loans of
this type are generally offered up to £25,000. Repayments
are over a period of time, usually between six months and
ten years.
Lenders charge interest, which can be fixed or variable, on
the amount borrowed. This interest charge is expressed as an
APR (annual percentage rate). The APRs will vary dependent
upon the amount of the loan and sometimes the terms. Usually
the rate is fixed and remains the same throughout the period
of the loan. If it is variable you must be advised of this
possibility.
Secured personal loan
A secured personal loan is one in which some of your
property, usually your home, is held by the lender as
security for the amount you have borrowed. Secured loans
usually offer lower interest rates than unsecured ones.
Need help choosing
a loan, view our