From the Chancellor of the Exchequer to the average family, everyone at some stage in their lives will need access to credit. The type of loan that you will be able to source will depend on your needs and your ability to repay the loan. Situations can differ, so it’s a good idea to be confident that you are getting the very best value for money for your individual circumstances.

Why do you need a loan?

If you need to replace your children’s school uniform or you see an unbeatable holiday offer, but just haven’t got the funds, then it’s a good idea to take a look at CCP logbook loans. These types of loans are especially helpful if you have a poor credit rating, and find that you bank won’t give you an overdraft. As long as your car is under 10 years of age, you can borrow up to 75% of your car’s value, and repay the loan on a manageable weekly or monthly basis. Failure to repay the loan will result in your car being seized by the loan company.

Shopping with credit

Credit cards can be dangerous; and they should be reserved for treats or unexpected emergencies. Anyone who starts to rely on their credit card to prop up their regular monthly expenditure will find themselves in financial hot water. You’ll be struggling to repay the original loan and the interest rates can soon start to rocket. It’s not all bad news though. The financial guru Martin Lewis, on his website Money Saving Expert, suggests that if you shop around you can find 0% credit cards that offer enticing introductory deals. Read the small print and you may even find a card that will give you a 0% deal for 21 months. As long as you can ensure that you can repay what you’ve borrowed these introductory offers are great news for credit card users.

Think before you borrow

If you are looking for a larger loan, then think very carefully before approaching a loan company. A recent article in The Daily Mail highlighted the problems faced by a family in Wales after they couldn’t repay a loan that they took out on the family farm in order to raise additional funds for their business. The loan company charged crippling interest rates and fees, and an initial loan sum of £1.24 million jumped to a staggering £3.1 million. The family lost their farm.

The Financial Conduct Authority (FCA) doesn’t regulate all loan firms. It’s important that you are aware that commercial loans don’t come under the FCA’s remit. Always check and then double-check again; whom you are borrowing from and make sure that you understand all of the terms and conditions. If you do need a large loan, talk to your existing mortgage provider and see if you can remortgage your home. Though new stringent lending regulations have made this option more difficult.

Sometimes it’s best to rely on your savings or even go without. A loan always has to be repaid and fees and interest rates can be crippling. A new wardrobe, iPad or whatever else may be bang on trend, but falling into debt is never a good position to be in.