Consumer Corner: Need to borrow money? Here's what you should know

Opt for credit that can save you hundreds

With the cost of living hitting crisis point this winter, many of us may have to borrow money.

Borrowing money can be a necessary evil at times. Sometimes we may be faced with no choice but to borrow money and that’s ok but as with everything, it does pay to shop around. It’s all about the interest rate. Borrowing €5,000 on an interest rate of 6.99% over two years will cost you €372.17 in interest compared with an interest rate of 11.9% for the same loan costing €643.21.

Joey Sheahan, head of credit at online brokers MyMortgages.ie said that whether or not to borrow money is a decision that people should give very careful consideration to regardless of whether it is a small or large sum in question. It can be easy to secure a loan and a nice lump sum will be tempting but there is also a long road of repayments ahead that should be considered.