Extra loan repayments ‘could be debt solution’

David Kuo, head of personal finance at website Fool.co.uk, said that for consumers who borrow money, a flexible loan that allows bigger repayments when the borrower is in the position to do so could prevent the need for a debt management plan in the future.

“Whilst many of us may be able to effortlessly service our loans today, any unexpected changes to personal circumstances can quickly send us down a spiral of debt,” Mr Kuo said.

“Consequently, it is a good idea to get a flexible loan and make extra payments when we can afford to do so.”

The personal finance head also suggested that “delaying a purchase” or putting money aside to save for whatever consumers are considering buying can be a wiser move than borrowing the funds or putting them on a credit card.

He added that a personal loan can turn into a “millstone” around the neck, with “drastic measures” sometimes needed to become debt free once again.

The independent website has some two million members, according to Fool.co.uk.

track

Tell others:

shortlink

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close