1. 
2. 

1. 
2. 
3. 
4. 
5. 
6. 
7. 
8. 

Loans aren't that scary. As long as you stay away from carnivorous fishes, especially any called Jaws, a loan can cut down your monthly payments and manage your debt more effectively. Debt consolidation isn't as scary as it sounds either, and compared to other financial services, loans are one of the more simple options.

The Options

There are two main types of personal loan - secured and unsecured. A secured loan is done by securing your loan against your property, you can benefit from a lower rate of interest, but that does mean if you fail to make your payments, those nasty bailiffs may come and take your house away from you.

An unsecured loan offers more risk to the lender, and that means a higher rate of interest for you. The loan company wants security, and by golly if they can't have your house, you'll have to pay them more money.

Any Extras

Most companies will ask if you want to take out payment protection with your loan. This is an extra cost to ensure that the repayments for your loan are covered in certain circumstances such as long-term illness. However, these products can be expensive and you may already be covered for such eventualities elsewhere (through your employers for example).

Watch out for companies that charge an application fee for your loan. While most don't charge this, it's just another way of getting money out of you for the ones that do. And the lower the interest rate and the shorter the repayment term for the loan, the better. It may look more appealing to pay your loan off over a longer period and pay less per month, but the quicker you pay it off, the more you will save.

You see, getting a loan isn't that scary!

Loan Amount
Mortgage Rate
Year to Pay
CALCULATE

 Always listen to experts. They'll tell you what can't be done, and why. Then do it. 

Anon