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