British credit consumers have been urged to assess the level of flexibility a particular loan deal offers before entering into it.
David Kuo, head of personal finance at price comparison firm Fool.co.uk, is convinced that flexibility is a crucial aspect of any borrowing deal that should be considered more often.
Paying back a loan earlier than is required can be a good way to avoid debt management problems and consumers ought to make sure that this is an option available to them, says Mr Kuo.
Mr Kuo also maintains that taking out a secured loan can be a gamble that sometimes results in the loss of a family home and further difficulties in becoming debt free.
“It is also important to evaluate products by comparing the Total Amount Repayable (TAR) rather than the Annual Percentage Rate (APR),” he said.
Rates of interest associated with personal loans offered by UK lenders have risen by around 1.7 per cent on average over the past 12 months, Moneyfacts reported recently.