Choose the right personal loan

It is becoming increasingly difficult to get a personal loan, recent research indicates.

According to the Finance and Leasing Association, personal loans (also known as unsecured loans) have been walloped by the credit crunch, with 45% fewer loans being granted this year. With a shaky economy and rising unemployment, we should all try to avoid getting into debt if we possibly can.

The right loan for you will depend on your own, very personal circumstances.

A personal loan could well be your best option:

• You need more than a year to pay off your loan;

• Your credit score won't allow you to take out a 0% credit card or a Zopa loan;

• You want to borrow a relatively large amount of money (more than that offered by a typical credit card/overdraft limit);

• You don't want to risk your home by committing to a secured loan.

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