Finance

When looking for a personal loan one might reasonably go to a bank or building society, but they are also available at a range of interest rates from some retailers or direct from a broker (for a fee). To choose the right loan, you must weigh the borrowed amount with how long you think it will take to pay back, being careful not to over-stretch yourself financially; remember that the longer it takes to repay, the more interest you pay.

There are several loan types available, from the more common fixed-rate repayment loans, to flexible loans that allow you pay when and how much you want but at a higher interest rate. In selecting a loan you must be careful when comparing the rate of interest (APR) because different lenders work this out by a variety of methods.

In essence, don't borrow more than you can afford and pay it off as soon as possible.