| You don't need to be a homeowner to get a loan. | | | | repayments to see if you really will benefit. |
| Personal loans are unsecured, meaning you don't need | | | | For example, a £4000 loan taken out over 5 |
| to have property as collateral. With a personal loan | | | | years with an APR of 6.9% will generate interest of |
| you don't have the immediate risk of losing your | | | | £740.97, and monthly repayments of |
| home hanging over your head. | | | | £79.02. The same loan taken over 4 years will |
| You can use a personal loans for a variety of | | | | generate £588.78 interest, which is a saving of |
| purposes. Weddings, holidays, re-decorating the | | | | £152.19, but you'll be paying an extra |
| house, and Christmas are all common reasons why | | | | £16.58 per month. Over a year that is an extra |
| people take out personal loans. | | | | £198.96 in payments - more than the extra |
| Of course, not everyone will be able to get a | | | | interest you'd pay for that year. Of course, if you |
| personal loan. Whether lenders will approve you | | | | can afford the extra on your repayments and you |
| depends largely on your credit rating. This also | | | | don't really mind about the total amount you'd pay, |
| determines the APR you get if you are offered a | | | | then a shorter term means you'd be clear of the |
| loan. | | | | debt quicker. So take all this into account when |
| The amount you can borrow will vary depending on | | | | applying for a personal loan. |
| your credit rating too, as well as your income, your | | | | Above all, only take out personal loans if you're sure |
| outgoings, and which lender you apply with. Personal | | | | you can afford the repayments, and never borrow |
| loans tend to be for smaller amounts than secured | | | | more than you need unless you plan on investing the |
| loans, and taken out over a shorter period of time. | | | | extra amount in a high-interest account to help with |
| It's best to take out a personal loan over as short a | | | | the repayments. Personal loans are not a quick cash |
| period as you can afford, to cut down on the | | | | fix, they are a serious financial commitment which |
| amount of interest you will end up paying. But | | | | can play havoc with future credit if they are not paid. |
| compare the total amount payable with the monthly | | | | |