PAYMENT PROTECTION INSURANCE
To avoid the above-mentioned penalties, it is advisable to take out Payment Protection Insurance. It ensures the repayment of your loan if you die, lose your job or become disabled or ill. You can obtain Payment Protection Insurance on your home loan as well as for your credit card and personal loans. To prevent any claiming issues, ensure that you read all the terms and conditions, completely understand your policy, and are aware of all the details.
ANNUAL PERCENTAGE RATE
The representative Annual Percentage Rate (APR) is the charged interest rate for the whole year. The APR measures your cost of borrowing money from a specific institution, as well as any other associated costs. Institutions vary in terms of their transaction fees, interest-rate structures and late penalties, so it is useful when you need to compare different loans. Each institution includes its own APR, therefore you need to meticulously evaluate each one and choose the best option.