A personal loan is a popular option among UK residents in getting the funds they need for big purchases, debt consolidation, and other expenses that require a significant amount. A borrower can take a loan of £1,000 to £35,000 and pay it back plus interest in fixed monthly instalments for one to seven years. Most lending companies apply a fixed interest rate for a personal loan. However, you must check with the lending company what kind of interest rate they use. Aside from the more substantial amount that you can borrow and the easy payment plan compared to other loan types, here are the top 5 reasons why most UK residents prefer personal loan.
The cost of moving from one place to another depends on the distance you have to travel to your destination. Relocating to another city across the state may cost more than what you can easily afford. Taking a personal loan could help you cover the costs of moving such as transporting your household belongings and paying for storage space for the items you cannot bring with you, but you cannot discard easily. You might need to buy new furniture and appliances for your new home.
Have you been living in your old house for decades and planning to remodel it? Such a project may require considerable expenses. If you do not have the cash to finance a remodelling project, taking a personal loan could help. This type of credit offers significant amounts that could be enough to have a complete makeover of your home.
You can replace the decaying parts, change the window and door frames, repaint the whole house, or add an extra room to accommodate your growing number of family members. A personal loan does not require security. Not using your house as collateral will lead you away from the risk of losing your home if you cannot pay the amount that you borrowed.
Having several small loans to pay can be stressful and pain on your budget. Thinking about paying a loan this week, another the next week, and so on can put your finances in jeopardy. Why not take a loan and repay all your debts? This way, you would only have to think about one payment date, which will allow you to manage your finances efficiently. Since you can take a personal loan of up to £35,000, it would be enough to pay various lenders.
After consolidating all your debts, you would only be worried about paying your loan once a month. The amount to pay will be predictable because of the fixed instalment payments. It would be easy to control your spending and allot money for your monthly amortisation so that you will never miss a payment.
Pay for Large Purchases
Repairing your old car can be more costly in the long run than buying a new one. Why not take a personal loan to pay for a new car? The debt comes with interest, but the cost of borrowing can still be lower than the money you must spend every time your car malfunctions. Besides, you could lose your job or essential appointments when your vehicle breaks down on the exact day you badly needs it.
Have a Dream Vacation
With a personal loan, you are free to use the money that you borrowed for whatever purpose you have in mind, be it a vacation. An ordinary vacation will not cost much to warrant taking a loan. Opting for a world tour or a cruise could be expensive. However, taking a personal loan could cover most of the expenses that come with a grand vacation.