If we believed everything we saw on the telly, just about every bank, building society and other financial body would like nothing more than to throw cash our way. How many adverts have you seen on the television offering you a chance to get your hands on a hefty lump sum? Or how many special deals have come through your letterbox in the last 12 months, offering you the answer to all your financial woes? There is no doubt that a personal loan provides a good opportunity to organise your finances or improve your standard of living, whether it be with a shiny new car or a more reliable washing machine. But personal loans are usually more complicated than some lenders let on.
Firstly, the rate being dangled in front of you may not always be the one that comes your way. It is actually your own personal circumstances that will dictate your rate. How you go about applying for a loan, who you apply to, how much you want to borrow and for how long you want to borrow it are just some of the factors that have a huge effect on the amount you have to pay back. One big reason for taking a loan is to consolidate your debt and make life easier by having it all in one place – but this can also end up meaning the repayment term is extended.
Many loans offer a good way of organising your debt and making sure you pay off a fixed amount per month. But if you are not careful, you could end up paying a high price for choosing the wrong loan in the first place.
Making The Right Choice
Making it personal
If you want to borrow money but do not want to secure the loan against your other belongings, an unsecured personal loan is the way to go. Unsecured means you are not tied in by any guarantees, unlike a secured loan such as a mortgage, which is tied into your house.
Obviously, you are contractually obligated to repay the money and if you miss payments you could get a big black mark against your name.
In general, you can borrow from