Why is it a good idea to take out a personal loan?
The word ‘loan’ doesn’t immediately conjure up positive images. But there are many reasons why it might be an idea to consider a personal loan this festive season.
According to the BBC, the employment rate in the UK is 7.8% and a prominent issue for many people. As a result of this, some people have had no choice but to get a credit card. If you’re in credit card debt, the penalties can be harsh and the debt can easily spiral out of control, potentially leaving you feeling as though you’ll never climb out of debt. Some people reside themselves to a life full of debt repayments or even file for bankruptcy. A personal loan offers a third option – a manageable escape route for those stuck in monetary hell. Finding an unsecured personal loan with a fixed interest rate that suits your needs may help you to structure your repayments. Instead of finding the money to pay off everything in one lump sum, you’ll be able to sit down and work out how much you can pay the credit card companies each month. A structured repayment plan will see you on your way to financial freedom.
Many people put off the things they’ve always wanted to do or buy because of financial woes. This is particularly common these days when planning weddings. The average wedding in the UK now costs £21,000. For big events and occasions like these, it’s becoming increasingly popular to take out a personal loan. This means that you can have the special day that you wanted and know in advance how the repayments will be structured afterwards. Life’s too short to put things off because of money problems but we still have to be responsible, so whether it’s for a wedding, Christmas or for travelling, personal loans allow you to manage your finances and your ambitions.
Personal loans can be extremely flexible in terms of how you can use them. With other types of loans you often have to specify why you want the loan and have your reason approved before the funds are released. With a personal loan there is much more flexibility on what you can use your loan for. You’re able to spend your loan on a new car, holiday or even to help towards some prior financial dues. An unsecured personal loan will allow you to take out a loan without tying it up with your property, which also makes these types of loans available to non-homeowners.
With modern technology on our side, it’s now easier than ever to apply for a personal loan. When you’ve found a loan that will suit you, fill out a simple application form and you will be contacted via phone by someone from the bank. Learn more about personal loans from Clydesdale Bank.