A Loan and Loving It
Personal and secured loans have had a bad press in recent years with the credit crunch but, in truth, there are some plus sides to borrowing money. Provided you are sensible and only take out what you know you can pay back, a loan can be a good way to pay for those things you may otherwise not be able to afford without saving for a long time.
One of the most common reasons to get a loan is renovating or redecorating your home. Paint and wallpaper can be costly, and if you do any major refurbishments such as knocking down walls or building an extension, the costs can run into the thousands. Before you start any DIY project or renovation work (which you should usually get experts in for), work out exactly what you want doing, and how much it will cost, then look for a loan for that amount.
Holidays are another common loan reason, with people using borrowed money for that once-in-a-lifetime trip; perhaps a cruise or a round the world trek. It's a bit more difficult to plan exactly how much you'll need if you're borrowing for a trip like this but it's safe to say that if you borrow the amount of the holiday plus some extra for spending money you should be fine. If you can save up your spending money beforehand you need to borrow even less.
Everybody knows that getting married doesn't come cheap. Even a basic ceremony can cost hundreds when you include outfits, favours and the Reception. For something a little different such as a wedding abroad or in a stately home, you're looking at several thousands of pounds. By taking out a loan you can have your big day without worrying about saving up too much beforehand.
Needless to say, you should only take out loans if you know you can afford to pay them back. Unsecured loans, also called personal loans, don't use your house as security so the interest rates may be higher; make sure you take this into account when applying. Be realistic about what you can afford.
About the Author: J Tillotson is a financial author in the UK
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Print Article | Download PDF | 14 views | Sep 23 2008
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