Financefacts |
|
Mortgages Insurance Savings Credit Cards Loans Shares Alternatives Pensions Tax Hints and Tips |
| From
the Editor Contact Us Financial News Useful sites |
 |
| Loan Repayments
A simple calculation of the amount of each repayment, multiplied by the number of monthly instalments required, will
give you the total amount that you're expected to pay back over the course of a loan. Such a calculation may seem simple
but it's the easiest (and, we feel, the most accurate way to compare the cost of loans).
What's the cheapest way to get a loan? As a general rule, you'll find that you'll pay more interest the longer that you take to repay a loan. In practical terms
this means that you can reduce the amount of interest that you pay by reducing the amount of time that you take to pay
off the loan - it is thus highly recommended that you arrange to pay back the loan in the shortest time that you can
sensibly manage. You should be aware that most banks and loan companies will charge a redemption penalty if
you take out a loan and then try to pay it off earlier than originally agreed.
You may find loans that do not include redemption penalties or seem to offer inducements - be careful with such
loans - you may find that they have "hidden" costs or charge a higher rate of interest. As with any financial agreement,
you should always be careful to read the small print.
What is an unsecured personal loan? |
