A credit card is a form of borrowing. It may be a convenient mode of payment as it allows you to buy goods and services without using cash, but it is not intended to be a long-term credit facility. Read more..
Buying a home is a long-term commitment which should be carefully planned upfront. Before you start looking for a home, first work out what you can afford as well as find out what you need to pay for and also the loan amount you are eligible for. Read more.
An overdraft facility allows you to write cheques or withdraw cash from your current account up to the overdraft limit approved. It is a short-term standby credit facility which is usually renewable on a yearly basis. It is repayable on demand by the bank at any time. Read more.
Term and Revolving Loans
With a term loan, you must repay the loan either by instalments over the loan period or in full at the end of the loan period, be depending on the terms agreed with your lender. Revolving loans allow you to use the money up to an agreed credit limit whenever you need it. Once you repay the amount owed, the credit becomes available to draw on again. Read more..
Secured and Unsecured Loans
Loans can either be secured or unsecured. A loan is secured when a borrower is asked to pledge assets to the lender as security or collateral for the loan. For unsecured loans, the borrower does not provide any assets to the lender as security for the loan. Interest rates for such loans tend to be higher. Read more..
If you have agreed to be a guarantor for someone, you will have to pay off his debt if he is unable to repay it himself. Agreeing to be a guarantor is not an administrative matter. Being a guarantor is a serious commitment. Think about it seriously, and seek legal advice if necessary, before you agree to be a guarantor. Read more..