Choosing a long term loan deal that’s right for you takes some careful thought and planning. When comparing and choosing loan deals, many people fall into the trap of thinking that the lower the APR deal, the cheaper the loan will be overall but that’s far from being the case.
Firstly, when considering a loan that’s going to run over many years, it’s important to take into account factors such as how much you’re looking to borrow and whether you want a secured or unsecured loan. Unsecured loans will usually carry a higher APR than a secured loan to reflect the greater risk to the lender but, for smaller amounts of borrowing, the fact that they are usually paid off quicker means that the cost of borrowing is likely to mean an overall lesser repayment total than if you were repaying the loan over a longer period.
The secured loan route does have its advantages in that if you’re looking to borrow in excess of