Taking Out a Loan

The best way of financing a major purchase is to save up for it. However, if you can't wait that long, your only other option is to borrow, which can push up the price of your purchase quite considerably. The interest on a personal loan of £5,000 from a high street bank, for example, could add between £1,400 and £2,600 to what you pay. So if you want to borrow to finance a major piece of furniture or a home improvement, it pays to check the different types of loan available, and the charges involved, before you commit yourself to a lender.

In this section, we've put together a guide to the points you'll need to consider before taking out a loan, as well as a look at the types of loan that will suit your needs the best.