There are a few core things to keep in mind when checking your eligibility for an unsecured personal loan. Firstly, it is important to only borrow what you can afford to repay. When looking at your options, it is recommended to draw up a monthly budget. This will help you to manage your finances each month.
If you find that you’re struggling to make your repayments, please don’t ignore the problem. Talk to your lender about options such as extending the loan term to lower the monthly repayments.
Although your home isn’t at risk with a personal loan, lenders (the bank or business that issued the loan) still have the legal right to recover the money if repayments aren’t made.
If the debt is left unpaid, in some cases lenders can arrange for a CCJ (County Court Judgement) to be issued. It’s important you chat to your lender before you take out a loan, and if you need any further guidance, visit the Money Advice Service.
You can find out more about managing your finances here.
You can also get free, friendly support from the Money Advice Service here.