What is a realistic repayment period for me?
By: George McGonigal
Its very temping to opt for a long repayment period as it means you can either pay back a smaller amount each month or even choose increase the amount of money you borrow.
However you should remember that the longer the term of the loan the more money you will pay back in total (interest and charges).The repayment table below demonstrates the extra cost of longer repayment periods.
However it’s equally important to not end going for the shortest possible repayment period you can afford and leaving your monthly balance sheet at zero with no room for movement should you spend more than you budgeted for in any given month.
So always be careful to allow for any surprises and make sure you leave enough money so that you can enjoy yourself from time to time.
Example repayment table (at 10%)
Repayment period 3 years 5 years 10 years
Amount borrowed £10,000.00 £10,000.00 £10,000.00
Total interest repaid £1,543.40 £2,621.60 £5,573.60
Monthly repayment £320.65 £210.36 £129.70 respectively
George McGonigal
George is webmaster of an online personal loan resourcs website for UK borrowers. We bring under one roof lenders who offer online quotations to allow our visitors to compare rates in the comfort of their own homes. Why not visit us at UK Personal Loans Online: or our definitions page at Terminology Explained or our Useful Links Page.
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