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Personal loans
A personal loan is the standard way of borrowing money. In general, the more you borrow, the lower the interest rate will be.
Loans are normally repaid in monthly instalments over an agreed period. This amount of time is usually fixed and if you want to pay off the loan earlier you will probably have to pay a penalty. The longer the repayment period, the more interest you will pay, so go for the shortest one you can afford.
Flexible loans, which let you borrow and pay back at will, are becoming more common, but the interest rates are often higher.Cahoot offer a competitive flexible loan product.
If you are looking to borrow only a small amount or to borrow money for a short period (up to 1 year) you should consider taking advantage of some of the interest free introductory offers available with some credit cards. You simply apply for the card and use the card to make your purchase and then repay as much as you like over the introductory period so that by the end you have repaid the whole amount. Alternatively you could then apply for another credit card offering a 0% introductory balance offer and transfer your balance to this credit card company. By doing this you can effectively borrow money at 0%.
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