Loans - Personal loans advice issued - 03/12/2007

Advice has been issued by a leading financial website on whether or not taking out a personal loan represents a viable consumer option.

According to a statement released by the Thrifty Scot site, personal loans can be twinned with credit cards as ways of consumers attaining finance - although they suit very different needs.

The ability to gain higher levels of credit from personal loans, as well as the structured nature of their repayments, were cited by the site as positive reasons for taking out a loan.

However, higher monthly repayments than for credit cards and difficulties in obtaining a loan for a consumer with a bad credit rating were both noted as downsides to personal loans.

"It is important that you assess your needs and your repayment habits before your determine whether a credit card or a personal loan is the best choice for you," the site said.

"For example, if you simply want financial back up when going on holiday in case of emergencies then a credit card may prove ideal - however, if you need to raise a certain amount of money to pay for something like a holiday or wedding then you may find that a personal loan is the best choice."

The ease and flexibility of credit cards came in for praise from Thrifty Scot - although the risk of spiralling debt for customers only willing to meet their minimum monthly repayments was also noted.
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THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPATMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT
MISSING PAYMENTS WILL HAVE SEVERE CONSEQUENCES AND MAY MAKE OBTAINING CREDIT MORE DIFFICULT IN THE FUTURE.


Loan quotations are provided by Leadbay Ltd. Leadbay Ltd is authorised and regulated by the Financial Services Authority.