Anyone looking to take out a personal loan should ensure they study the small print of their deal before signing on the dotted line.
Justin Modray, an expert from Candid Money, explained that personal lenders sometimes attempt to distract customers to prevent them reading the full terms and conditions of their loan before signing the agreement.
He stated that the person selling the loan may "focus on the monthly repayments, hoping you'll ignore the interest rate and repayment period".
He recommended that consumers ensure they, "establish exactly how much you'll end up paying and for how long". This is the very basic information that all borrowers should have before signing up to repayments.
Modray adds that it is a "good idea" for consumers to check annual percentage rates on the products they are considering in order to get a good idea of the best deals out there.
Meanwhile, a recent study by unbiased.co.uk found that the amount people are repaying from their debts actually fell during the final quarter of 2010. This may be because people are finding it more difficult to afford repayments, or they may be taking advantage of the fact that interest rates remain low.
