There are few more expensive purchases in a lifetime than a home and a car. With the housing market in flux due to the double-dip recession, more consumers are steering clear of such large purchases in favour of waiting to discover when the economy will recover. Chancellor George Osbourne recently announced an initiative to give tax breaks to North Sea oil rigs, driving down the price of fuel. This will make it easier to travel long distances and put new cars on the road. It also means a car is far more economically viable now than it has been for a number of years, although if you’re unable to raise the cash this may not make any difference .
By taking out a personal loan, like the Clydesdale Bank personal loan for example, you could take advantage of the tax break and have a brand new car, then pay the remainder off without impacting on your credit rating or income. The amounts on offer range from relatively little to enough for a four door saloon car, and repayments are similarly flexible. The interest rates don’t vary either, so your loan period won’t be lengthened without you being aware of it. This also means you can comfortably schedule for when the loan will be repaid in full, and budget accordingly. The amount, which can range up to £25,000, can be paid back in 12 months or seven years, it’s entirely up to you. The fact that the loan is unsecured means a house needn’t be used as security, so even if you’re in rented accommodation you may still be eligible. Repayments can be made early as well, so you aren’t locked into a fixed term if your financial situation changes for the better.
The amount borrowed needn’t be placed exclusively against a car, either. With a new initiative recently introduced to remove the red tape attached to the likes of planning an extension to your home, the money could be split into another investment. Adding a conservatory, elongating an existing room or building a garage are about to become far easier, not only helping your day-to-day life but adding value to your property as well. This new proposal may not be kept in place indefinitely, so anyone holding back on those home improvement plans may see now as the perfect time to commit. With a personal loan, all eventualities can be catered for, in case more work is needed than was originally quoted for.
For those looking to start out in employment but are facing the daunting task of repaying a student loan, unless employment can be found almost immediately from graduation you may face repayments before your expected salary is achieved. With a personal loan, you can get the likes of a deposit on a rented flat or a second hand car before you’ve even found employment. As the repayments on your student loan may not start until a certain salary level is reached, you’ll still be able to establish a professional life outside of university and repay debts without impacting on your lifestyle.