Are rates worrying you?
Monday August 25, 2008
Personal loans with variable interest rates can be quite stressful to maintain when it looks as if interest rates are only going to get higher. This is why fixed interest rates on personal loans can bring greater peace of mind, although they can be more expensive.
For one, depending on the lender, the fixed rate may not last for the entire loan term, and you may be unable to make extra repayments while the fixed interest rate applies. Some lenders will use a fixed rate for the entire term and allow repayments, such as Suncorp personal loans, but this is not standard by any stretch of the imagination.
If anything, fixed rate personal loans offer a stable lending product in times of uncertain economic uncertainty. They may often cost more, but if a steady cost for repaying personal loans is necessary for you to budget, then applying for personal loans with fixed rates may be a good option for you.