Save Money with a Zopa Loan

Posted by Asa Ghaffar Feb 5, 2009

Although Bank of England base rates are falling, the cost of loans is increasing. With rising levels of unemployment, financial institutions have become increasingly reluctant to lend because of the risk of loan default. Approval levels for unsecured loans are plummeting. This has created a boom for peer-to-peer lender, Zopa Loans. Unlike other lenders, Zopa act as an intermediary allowing people to lend to each other. It is possible for someone to borrow between £1,000 and £15,000 over 36 or 60 months, although a borrower can pay back their unsecured loan at any time. Zopa loans are for those aged over 20, earn in excess of £25,000 per annum and have a good credit rating. If you fall into this category, you will be well-served by making an application for a low APR Zopa loan. Those struggling to make an income on savings may also find that Zopa loans provide a wonderful opportunity. Individuals that have a bad credit rating are unlikely to have much joy with Zopa loans. People that are struggling with bad credit can apply for a bad credit unsecured loan from an alternative provider, but the rates are likely to be 50-60%. There are also loan sharks to be wary of, not to mention the usury rates offered by a Payday loan. Individuals that are struggling with a bad credit rating may be better served pursuing a debt solution, such as a debt management plan, personal bankruptcy or Individual Voluntary Arrangement. Remember to always seek advice from a free debt counselling service before proceeding.