With all this doom and gloom surrounding the markets, you could be forgiven for feeling negative, lethargic and demotivated to make those changes and do those things you’ve always dreamed about. But the phrase ‘carpe diem’ meaning seize the day, is not time specific. It is not meant to be overruled by sluggish markets and austerity measures and it’s not meant to be crushed by an apathetic you thinking you can’t make those changes now.
Seizing the day is made easy with a personal loan. Personal loans can help pay for that trip of a lifetime, a home makeover, a new car or simply to consolidate other loans and help you get back on the straight and narrow, out of the red and into the black.
With interest rates being so low, now is actually a good time to take out a personal loan. Taking out one of Santander’s personal loans, for example, is easy and straightforward. You pay 7.4% APR on loans between £7,500 and £10,000; the payments are fixed monthly from one to five years and you can do it all online. So, for example, if you take out the full loan of £10,000 with Santander, and agree to pay it back over 24 months, you’ll pay £448.45 per month, totalling £10,762,80 after two years. Obviously the precise amount will vary depending on your credit assessment and personal circumstances, but this gives you an idea.
However, you need to be realistic about how much you want to borrow. This monthly repayment will obviously be on top of every other monthly payment such as rent or mortgage repayments, utility bills, food and transport. You need to budget for this before you even consider a loan and remember to allow some kind of contingency just in case something does go awry.
You are more likely to get the advertised APR if you have a good credit rating. (Check out this useful article in The Independent for tips on how to improve it.) Don’t despair if yours isn’t top notch; there are ways you can improve it. For example, pay off any current debts on time, do not leave it until you get final orders and try to avoid just paying the minimum on monthly credit and store cards. Remember that unpaid credit remains on your file for six years.
Avoid store cards altogether as these are quick ways of getting into debt as interest rates are incredibly high.
Don’t apply for lots of credit from a wide variety of places as this will stay on record and reduce your credit score.
Keep your personal details up to date, i.e. make sure you are on the electoral role and all your past address details are correct.
