Extending Your Loan Terms

A lot of loan products that are advertised now days generally fall under the category of 'payday loans' or 'short term cash loans'. These products are designed as short term emergency borrowing solutions which shouldn't be used on a day to day basis to help you with normal living costs (although they can be!) Typically you can borrow between ?500 to ?1000 over the duration of 1 to 2 months - essentially, you borrow a small amount of cash provided you can then repay it in full on your next payday. This is great if you're in a tight spot and desperately need some money now, but don't need it for long. The interest charged on these products looks relatively expensive when you compare APRs, but in reality because you are only borrowing the money for a month, the actual interest you are charged isn't as high as some people make out.
So, what do you do if you are looking to borrow a bit more money, you want a lower interest rate, you don't want to pay back the loan in one go, or you wish to borrow over a longer time period? If you've got a clean and healthy credit record (i.e. credit history) then you could go to your bank and see if they could help, however if your credit rating is in need of repair or not as clean as you'd like it to be then there is still a solution.
Guarantor loans are available to people whatever their credit history and typically you can borrow up to ?5000 over a term of up to 3 years. This allows you to get a larger sum of money and then be able to repay it gradually over a term that suits your income.
Unlike a short term, payday loan, the capital finance doesn't and shouldn't need to be repaid in full after 1 month, instead the way it works generally is that you pay it off incrementally month by month until both the capital and interest are paid off in entirety - this is usually much more manageable and a more standard way of borrowing money compared to the new short term payday loan methods. Because of the way they work, an APR is more suited for a guarantor loan calculation, and therefore you will notice that the rates are much lower for guarantor loans than payday loans. This keeps the overall interest down and ensures you don't pay ridiculous amounts of money in interest!  Article Source: http://EzineArticles.com/?expert=George_Thistle