Personal loans are used to buy many different things, from items like cars, holidays and home improvements. You will also find that many retailers will offer you a loan when you go to make a large purchase. It is important to be careful in deciding where to borrow money from as interest rates vary greatly, as do the terms and conditions applied by lenders.

You should only borrow for as long as necessary, remembering that although a longer term loan will make your monthly payments more affordable, you will end up paying more in interest over the term of the loan. The loan should not be for longer than the life expectancy of the goods.

You may also be offered payment protection insurance but you should check out what it covers.