Improving your credit score » « Tips for getting healthy
Improving your credit score » « Tips for getting healthy
Taking out a personal loan
May 21st, 2011 - nzcuadminPersonal loans are fixed amount, fixed interest, fixed term loans provided by a financial institution to an individual person.
Interest rates are generally higher than for other types of loans, but usually lower than a credit card.
Here are some things to think about before taking out a personal loan:
- Ask yourself if you really need to borrow the money. Could you cut back on something and save instead?
- Carefully work out what the personal loan will cost you each month and in total over the entire period before committing yourself.
- Try not to borrow more to repay an existing loan unless it is beneficial for you In some cases it may be better to get a debt consolidation loan to repay all of your debt. You could also talk to your financial institution instead about the possibility of reducing the interest on your existing loans.
- Make sure you understand all the fees that may be charged. Many personal loans have an establishment fee.
If you want to determine whether a Personal Loan is right for you, contact us, or better still, join our Money Coaching programme now!
