Low Cost Unsecured Loans
Don't be tempted to borrow more than you need
Low cost unsecured loans are very tempting, and lenders point out that you could buy almost anything: a new car; a fancy foreign holiday; a brand new wardrobe. However, if you borrow irresponsibly you'll be paying long after your tan has faded and your car has started to rust.
Because you can use low cost unsecured loans for almost any purpose, they're very tempting: you could buy a new car, change your wardrobe, go on a fancy holiday or upgrade your computer. However, if you borrow irresponsibly you'll be feeling the effects on your wallet long after your car has fallen apart and your wardrobe has fallen out of fashion.
The more debt you have, the more risky your financial situation. Life has a habit of throwing up surprises, and if your finances are stretched to the limit with loan repayments you could find yourself spending more than you earn – a recipe for financial disaster. Remember too that even the cheapest low cost unsecured loans come with a cost attached in the form of interest payments – whereas if you save up for the holiday, the car or the computer, your money will earn *you* interest as it accumulates.
If you're considering low cost unsecured loans, ask yourself: could I save up the same amount of money without sacrificing anything? If the answer is "yes", then a loan might not be the most sensible way to finance your car, computer or clothes.
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