Personal loans ideal for medium amounts
There are various means of borrowing money and the one you choose must best suit your circumstances. There are plenty of options, from personal loans to secured loans to credit card loans and overdrafts, and payday loans.
With personal loan rates decreasing in recent years, borrowing has never been simpler. Providers have been slashing their rates to make their offers the most competitive on the market. Based on a loan of £10,000 at 2.90% per annum, the total amount repayable would be £10,744.20. A personal loan is ideal if you require a medium-sized loan of between £7,000 and £14,000.
Some people turn to credit card borrowing, and this is worthwhile because if you select your card carefully, you could pay no interest at all. This is because some credit cards on the market offer 0% on purchases for a certain time frame. This is ideal if you want to borrow a small amount and you are certain you can repay the cash at the end of the period.
Some financial institutions offer low rates on overdrafts, which is another option. Many people will access an overdraft if they have a low credit score.
Secured loans can put your home at risk
If you require a larger sum, a personal loan, which is unsecured, may not be enough as the maximum amount you can borrow is often set at £25,000. It may, therefore, be worth looking into a secured loan. This is a loan that is secured against your home, and the lender is legally entitled to sell it if you fall behind on payments. Interest rates are lower too, but it does put your home at risk so it’s worth taking professional advice.
Financial advisors can give advice on all …