According to a research from Abbey Savings, an average consumer has spent nearly £3,700 on pointless purchasing by using the money from credit cards and personal loans.
The purchasing included expensive items like clothes, games consoles and gym equipment that were never taken out of their boxes, let alone used. Nearly half of those questioned said that they had bought an expensive item of clothing that was hardly ever taken out of the wardrobe.
No doubt, personal loans and credit cards are quite popular for funding your personal expenses. However, the borrowers should use them with discretion. Overindulgence or wasteful use may prove fatal to their financial health. Sometimes, people become habituated to borrowing and they take out loans that exceed their legitimate requirements. The problem arises when they find it difficult to repay the borrowed amount. The increasing instances of default in repayments, insolvencies, bankruptcy, CCJ, etc., show that Brits are lacking in financial management.
A personal loan can allow you to borrow up to £25,000 without requiring you to provide any security. If you are a homeowner, you have the privilege of getting a low-rate personal loan. In this case, the lender offers you several advantages like flexibility in repayment tenure, a big loan amount and small monthly instalments.
Besides, a personal loans can be used for a number of purposes. It can be an advantageous proposition to take out a personal loan and use it to repay your pending credit card and store card bills. You should be clear in mind regarding the utility of a loan before applying for it. Unnecessary borrowing should be avoided.
The author is a business writer specializing in finance and credit products and has written authoritative articles about Secured Loans . He has done his masters in business administration and is currently assisting Go4UKLoans as a finance specialist.