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Would you take out a loan at the moment or is it a really bad idea?

(7 Posts)
TwentyOneGuns Sun 17-Jul-16 16:43:42

We've been planning to take out a loan (probably about £7000) to pay for some much needed home improvements. It's taken years for us to be in a position to do this and of course now I'm feeling a bit anxious because of the state the country's in. We wouldn't be stretching ourselves to meet the repayments and we don't have any other debts apart from the mortgage. WWYD?

Bearbehind Sun 17-Jul-16 18:57:03

If you can afford it and your jobs are as safe as anyone's could be then there's no reason not to now as opposed to any other time.

Borrowing for home improvements is never ideal but interest rates are low so it's not the worst decision ever.

The media will talk up the current uncertainty which in turn will talk down the country's prospects but the reality for a lot of us is that not much will change on a day to day basis (and I say that as a Remain supporter)

Badbadbunny Tue 19-Jul-16 10:05:38

What state is the country in?

It's business as usual from what I see.

Ic3lollyr3d Tue 19-Jul-16 23:26:43

Choices

Save up the money
or
Take a loan and pay lots of interest
or
Can you buy some things on a credit card with no interest

Look at www.moneysavingexpert.com

If you use a loan research if you can pay the loan off early if you pay in extra

InDeNile Mon 25-Jul-16 12:48:00

In contrast to others, I would say now is a GOOD time to take out a loan, as long as you can afford the repayments. Interest rates are incredibly low so it would be a good time to lock one in.

A quick glance at moneysavingexpert brings up loan rates of around 3.3%. If you paid £7k back over 5 years, you would pay a total of £600 in interest over that duration. That's remarkable value.

cozietoesie Mon 25-Jul-16 15:04:41

The loan is for home improvements which - presumably - will help with your living. As long as you're not stretching yourselves, I'd go for it.

cozietoesie Mon 25-Jul-16 15:06:12

PS - subject to what PP have noted about getting the best deal on obtaining the money. smile

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