Secured Personal Loan Downsides
by admin on 07/12/09 at 9:07 am
Because you will need to have your property valued, personal loans can take longer to arrange. If for some reason you cannot keep making repayments then your lender can take your collateral to get their money back, meaning they could have your property/possessions repossessed. If you have payment protection, you have some security against job loss, illness or accident here, but it will add to your total. Lenders will certainly advertise their ‘best’ rates, but you may not qualify for these. The best rates you will see will be offered to few people with perfect track records. Look for the APR (Annual Percentage Rate) this will be the actual rate you’ll be paying. Check carefully on those special offers, what looks like a bargain can often cost you more. No one knows how things will be in the next few years so you should be looking for repayments holidays, flexibility in over payments and penalty-free early repayment wherever possible. The downside, not all personal loans will give you this kind of flexibility.
