Borrowing between three and five thousand pounds is a large enough amount to make one significant purchase or carry out a number of smaller projects. A quick glance in any vehicle magazine or paper will show you that this range is right on the money for procuring a car. Some very decent cars can be found on the second hand car dealer forecourts as you nudge towards the £5,000 mark, whilst£4,000 is still enough buying power to go out to an auction for your motor or perhaps for some online sourcing of horse power. If you are at the £3000 end of the funding then sometimes looking local may be the answer, a friend or relative could create a win win scenario and save you a heft wedge at the same time. You can use personal loans, secured loans or guarantor loans to buy vehicles. An option for a guarantor car loan may be to add the guarantor to the insurance so they can use the car to, or to agree between you who will be the registered keeper of the vehicle as a gesture of good will.
Multi - Purpose Loans, Your Money & Your ChoiceAt this level of loan the payments should be manageable if you pick a sensible term and the lenders will be comfortable that their risk of you struggling to repay them is low. Hence you will normally be left to your own devices as to how to spend the money obtained.
One clear distinction here is that you should not be using the loan as a source of income. If this is the case then you need to take a closer look at your overall financial position to see why you are in a negative cash flow position and what you can change to alter it. Borrowing via loans should be to get a specific project done which will outlive the loan term and is of a genuine need.
Spending Ideas For A 4,000 Guarantor Or Personal LoanA few example realistic blends of how a loan for £4,000 could be utilised;
Home Makeover - New bath with over shower, new toilet and new hall-stair-landing carpet.
Drive & Chill - Second run about car for the home maker, one week holiday in Cornwall for four
Parking and Barbeque - Driveway Tarmacked, replacement fencing, new shed and patio equipments.
Chef & Dining In - Refurbished kitchen units, new fan electric cooker with gas hob, fridge freezer, six seater dining table and a dishwasher!…..
Repayment examples for a £4,000 loanRemember to only borrow what you need, there is usually no need for large scale rounding up. In other words you can usually borrow in increments of £100, so if you need £3,600 then borrow that amount or as close to it as possible.
4000 over 36 months = 235.47 per month. Total payable if runs full term 8476.92
4000 over 48 months = 206.30 per month. Total payable if loan goes full term 9902.40. 4000 over 60 months = 190.51 per month. Total payable if loan goes full term is 11,430.59. Representative 49.5%APR Variable.
No set up, application, broker or processing fees. As you can see lengthening the term gives you slightly better cashflow but increases the interest paid notably, so keep the term as short as you can afford without over burdening yourself. As with most things in life, sorting your loan is a compromise between getting what you need and living within your means. Please also bear in mind that if you have a guarantor they will be liable for paying your loan commitment back if you do not and if you take out a straight personal loan the liability is with you alone, failure to repay can damage your credit history and cause problems when trying to obtain further credit in the future.