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Personal Loans

Missing payments on personal loans can result in penalties, a negative impact on your credit rating and the eventual involvement of debt collection agencies.

Personal Loans

What are personal loans?

Personal loans may be taken out for a variety of purposes, from home improvements, funding a holiday, or even to clear outstanding debts such as overdrafts and credit cards. They are a common form of borrowing, and typically involve larger amounts which are paid back over a longer time period, compared to credit cards where the borrowing is usually short-term.

Personal loans vs credit cards

Interest rates on loans tend to be lower than those charged on standard credit cards; however, they can end up being a costlier way of borrowing due to the long-term nature of the debt which typically runs for several years. By spreading the debt over a long period of time more interest will accrue; essentially the longer you take a loan out for, the more you will pay back overall.

Another reason people may opt for a personal loan over a credit card is due to the amount of money offered by the lender. Credit cards tend to have lower credit limits of anywhere up to around £5,000. Personal loans on the other hand can be offered on amounts up to £50,000. While this has advantages, it also means that if you have trouble making the necessary repayments for any reason, the higher level of debt makes the situation more difficult.

What happens if you can’t make your monthly repayments?

Personal loans are a form of unsecured borrowing, which means you are not in danger of losing your home if you have problems making the monthly repayments. However, this is not to say that there are not serious consequences to defaulting on a loan. Not only will the missing payments damage your credit file, you will also be hit with late payment fees as well as monthly interest continuing to be charged and added on to your balance. Furthermore your lender will not allow you to miss many payments before they start to chase you for payment. Should you fail to pay, your debt may eventually be handed over to a collection agency who will employ various techniques to recover the money owed.

What next?

If you are struggling to repay your personal loan, it is important for you to seek professional advice in order to sort out the situation. Contact our experienced advisers today for a same-day appointment.

Lawrence O'Hara

Insolvency Adviser

Tel: 028 2132 6269

Why Choose Us?

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  • Head office in Belfast - National Coverage
  • Home visits also available
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  • Helping thousands of individuals since 2010
Our Insolvency Practitioners
are regulated by ICAS or IPA
Home Visits also Available

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    Client Testimonials


    After losing my job, I started relying on credit cards and payday loans to get me through the month. As the debt build up, I found it increasingly difficult to keep up with the monthly payments and was hit with late penalties and added interest which only made the problem worse.

    I was ignoring letters and phone calls, and dreading knocks on the door fearing it was bailiffs. This was when I knew I had to seek expert advice. After contacting Northern Ireland Debt Solutions, I felt an immediate sense of relief. Within a matter of days, the phone calls and threatening letters stopped, and I was finally able to move on with my life.


    After burying my head in the sand for many years, I knew I had to face up to my debt problems. I was ashamed of the situation I had got myself in to, and it took a lot of courage to pick up the phone and make that first call to Northern Ireland Debt Solutions.

    My adviser was sympathetic to my problems and I never felt as though I was being judged. He explained all of the options which were available to me and explained how each would work in my situation. While bankruptcy is a big step, I knew it was the best thing for my circumstances. I paid off what I could afford and the rest was written off. Three years on, I am in a much better place financially and able to look forward to the future.

    Our Insolvency Practitioners
    are regulated by ICAS or IPA

    Contact our Office on 0800 0639 250