Whats the best personal loan deal?
Cash loans mainly get a lot of criticism because consumers always unfairly compare them to bank loans. Those are set up with monthly installment payments that you pay back over time. Actually, payday loan is sounds "Hey can I borrow a few pounds until my next wage day?" Which means in about one or two weeks later the full amount of money that you borrowed, plus the fee, must be paid back to the lender. It is no doubt that, if you compare those regular loans you would get at your bank with payday loans then the interest rate of the second will appear extremely high. Nevertheless, a lot of people say that comparing pounds till pay day loans to traditional installment loans is like to compare apple and oranges. But since they are both loans actually I feel it’s more like comparing oranges to grapefruits.
For £5,000 over three years, the best personal loan currently available without insurance is from the Co-operative Bank’s Your Personal Loan offering 6.7% For £10,000 over five years, Sainsbury’s Bank is offering a rate of 6.5%. If you opted to take PPI with the Sainsbury’s Bank personal loan, borrowing £10,000 over five years your fixed monthly repayments would be £253.39, compared to £195.01 without insurance. That’s an extra £58.38 per month, or an extra £3,502.80 over the 5-year lifetime of the personal loan. So PPI is very expensive! If you’re planning on splashing out over Christmas, make sure you do your homework and search for the best personal loan to match your individual needs and don’t fall for the PPI sales patter!
