Save with a loan

If you need to borrow money, perhaps to buy a new car, replace a boiler or pay off a credit card, make sure you get the right deal for you

With certain loan providers currently charging less than 3% interest, a personal loan could be the best way to get that new boiler or clear an expensive credit card.

A loan can help you…

...upgrade household appliances

If you’ve got an inefficient boiler, replacing it could save you hundreds of pounds. Figures from the Energy Saving Trust show that replacing an old G-rated boiler with an A-rated one could save £300 a year if you live in a three-bedroom detached house, or £155 a year if you’re in a detached bungalow. A new boiler, plus thermostat and radiator valves would typically cost £2,300.

…make home improvements If you have a garage, converting it into another room could be very profitable, according to Towergate Insurance. The average conversion cost is £15,540 but it could add more than £41,000 to the value of an average home.

Other improvements that generate a good return are energy-efficient measures, such as double glazing or insulation, or converting your loft.

...pay off credit card debts

A 0% balance transfer deal can be the cheapest way to clear credit card debts. But if you only repay the minimum each month the balance often won’t be paid before the deal runs out – which is when the high interest rate kicks in. Plus, most have a balance transfer fee so they’re not really ‘0%’ at all.

With a personal loan, you’ll have cleared all of the debt at the end of the term as long as you make every monthly payment.