• If you miscalculate how long it will take you to pay back your outstanding balance, it could end up costing you.
Bear in mind that personal loans often come with additional fees and charges.
Be sure to look at the comparison rate, not just the standard rate, in order to understand the true cost of the loan.
Credit cards, personal loans and refinancing your home loan are all potential ways of accessing credit, depending on your needs.
To help you decide which one might be right for you, here’s a closer look at these three different financing options.
Pros: • You can work out a customised payment plan that fits with your budget.
• Repayments are predetermined, so you’ll know exactly how much you need to pay back every month and can budget accordingly.• You can continue to access your credit line for as long as you own the card.Cons: • After a card’s interest free period ends, your purchases will start accruing interest at the standard purchase rate.You’re required to make ongoing payments of a predetermined amount to repay the loan in full by the end of the term, usually between one and five years.Personal loans are typically available for one-off purchases or significant expenses. You may be able to access extra funds by moving your home loan to a new provider who will pay out your existing home loan.Or, if you’re taking advantage of a special credit card offer with an initial interest free period, make sure you pay off any purchases within the introductory period.