All About Money do not currently provide personal loans. Secured loans are provided by our sister company Think Loans & Mortgages Ltd.

What is a personal loan?

Are you looking to spend money on some fairly expensive things - such as a new car or DIY - but can't cover the cost upfront?

If you're in this position, a personal loan could provide the best way of borrowing the cash you need and paying it back with fixed monthly amounts.

One of the advantages of a personal loan is that it's likely to come with a lower interest rate than many other types of loan, which could save you a fair bit of money overall. However, the personal loan rate you'll be charged will depend largely on your personal situation, including things such as your credit rating and the general shape of your finances.

Personal loans fall into two main categories:

  • Secured loan
  • Unsecured loan

If you're unsure what type of loan could be right for you, we could give you the advice you need. Call one of our loan advisers on 0800 195 2910 or click here.

What is a secured personal loan?

If you take out a secured personal loan, your home will be used as 'security' against your payments. This means that if you can no longer afford your agreed payments, your lender has the power to repossess your home and sell it, in order to use the funds to repay what you owe.

However, on the plus side, the fact that the loan will be secured means that lenders won't be as concerned about how you've managed your finances in the past - so you could be accepted even if you've had problems with your money before.

You also could be able to borrow much larger amounts than you could with an unsecured loan (often up to 100,000) and you could repay the loan over a longer timeframe that's more convenient for you.

If you think a secured loan is right for you, we could help you to find the best deal for your situation. Call one of our advisers on 0800 195 2910.

What is an unsecured personal loan?

Here at Think Loans, we don't provide unsecured personal loans. If you'd like to know more, however, here is some information that you may find useful.

An unsecured loan basically means that the money you borrow won't be 'guaranteed' against your home or personal property. As a result, it's generally considered a 'safer' way to borrow some cash, as there will be less chance that you will lose your home if you fall behind on your payments.

This type of loan could be ideal if you don't own your own home and you're looking to repay the loan over a relatively short period of time (typically between three and seven years).

It's important to bear in mind that because your property won't be used as 'security', lenders will use your credit rating to decide whether or not to lend to you - so the better your credit rating, the better chance you have of getting the best unsecured loan deal.

Could a personal loan help me repay existing debts?

You could take out a personal loan to help you pay off other existing debts and simplify your finances. This is called a debt consolidation loan.

For one thing, taking out a debt consolidation loan could help you to make your monthly finances easier to manage, as you'll combine multiple monthly payments into just one - which you'll make to just one lender. So, if budgeting for, and keeping track of, multiple payments is a bit confusing, consolidating your debts could be the best step to take.

Furthermore, if you decide to repay the loan over a longer timeframe than your original debts, you could reduce the size of each monthly payment - freeing up a bit more room in your budget. (Though note that paying interest for longer will cost you more in the long run.)

However, taking out another loan if you're having problems with your finances won't be suitable - and in fact, could lead to things getting worse. If you're struggling to repay your debts, you should get some expert advice ASAP to find the best approach.

How quickly can I repay a personal loan?

Before taking out a loan, it's very important to think about exactly how you'll repay it. Bearing in mind that you'll typically be making repayments over a number of years, working out how much you can afford to repay every month - and for how long - is an important part of financial planning.

Remember that the longer you have the loan, the longer it will have to accrue interest. This means that:

  • Repaying the loan faster will mean each monthly payment will be larger - but you'll pay less overall
  • Repaying the loan slower will mean each monthly payment will be smaller - but you'll pay more overall.

It's important to think about what repayment approach will work best for you. It's a good idea to repay the loan as quickly as possible - but without putting pressure on your monthly expenses. How much can you realistically afford to pay every month? Are you likely to face any changes to your circumstances in the foreseeable future?

It could be worth discussing your finances with a professional first to work out how best to repay the loan.

Is a personal loan right for me?

If you want to borrow some extra cash and repay it over a few years, a personal loan could be the best way of doing it.

Unsecured loans tend to come with shorter repayment periods (usually between three and seven years), whereas secured loans can often be repaid over a much longer period. However, this all depends on the lender - and different lenders will charge different interest rates too.

As this is the case, it could really be worth doing some research and comparing different personal loan rates to find the best deal - and this is where we could help you.

We can search our wide panel of lenders to find you the best loan deal. When you've found a deal you're happy with, we can deal with all the paperwork for you - so you could get the loan you're looking for without any hassle.

Call 0800 195 2910 and we can help you make the right decision.

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The overall cost for comparison is 17.9% APR (typical).

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THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. DEBT CONSOLIDATION MAY INCREASE THE AMOUNT TO BE REPAID IN THE LONG TERM. Subject to status. A 12.5% arrangement fee is payable on completion. The actual rate available will depend upon your circumstances. Ask for a personalised illustration. Calls may be recorded.

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