Life these days can be really expensive, and sometimes we need a little helping hand. There’s nothing wrong with that. Living expenses are constantly going up, and let’s be honest, our wages aren’t increasing to match.
Since Little Lamb came into the world our finances have spiralled out of control. Before he was born we managed to save a few thousand pounds in our joint account. That was quickly gone.
From nappies to shoes, prams to changing tables, there’s always something to buy; believe me when I tell you babies aren’t cheap. Don’t get me started on birthdays.
I was recently introduced to Lending Works, a company that offers peer-to-peer lending, meaning both parities receive a much better deal. No no banks, no bonuses and no hidden fees.
I’ll be honest. I’m awful at finances. I don’t pay our bills; I don’t even know how much they cost. What I do know, is every penny is allocated for, and with my husband recently being made redundant, our funds are even more limited.
Taking out a loan isn’t something I’ve ever considered, mainly because I don’t want to be hit with a huge interest rate. The low apr loans from Lending Works are a new type of loan that is much more appealing to me.
How it works
- People who have savings and want to invest their money become ‘lenders’ with Lending Works.
- Lenders see a great return on their money, while borrowers benefit from the lower interest rates.
- To minimise risk, your money is split over a number of borrowers who have been credit checked and can afford to pay back the repayments.
- Lenders are offered the Lending Works ‘shield’ which consists of a reserve fund and insurance.
- Lending Works only charge one small fee, nothing is hidden.
Reading up about the company, I’m impressed with the benefits both the lenders and the borrowers get. APRs of 5/6% compared with the usual 20%, you can get a personalised quote that doesn’t affect your credit score (yay) and once approved can have the loan within 2 working days. They even allow you to repay early without being charged.
For someone that is a bit clueless when it comes to this stuff I want to trust the company I’m borrowing from. Money panics me, especially when I don’t have much. Lending works to me sound like a company I could trust, I feel they are looking out for both parties, rather then charging you every penny of interest they can on what you borrow.
While my husband is completing his apprenticeship things will be tight. I’m hoping we can budget our money and learn to live off less (when I say less, I mean 10k less – yikes), so far we are coping, but there’s no harm in looking at other options, like personal loans, to keep us going until he is qualified.
How do you feel about personal loans, do you have any advice for someone who is considering taking one out?
Ax
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