Cheap Is Not Necessarily Nasty In The Loan World

Summary: The number one consideration when looking for personal finance should be how much of your hard-earned cash a loan is going to relieve you of. If you see a loaf of bread in a shop that costs 60p and a seemingly identical loaf right next to it for 90p, you'd be faced with a question: Should I choose the cheaper one, or is it cheaper because there's something wrong with it, in which case should I go with the 90p one? Some people would instinctively buy the cheaper one, others th...

The number one consideration when looking for personal finance should be how much of your hard-earned cash a loan is going to relieve you of. If you see a loaf of bread in a shop that costs 60p and a seemingly identical loaf right next to it for 90p, you'd be faced with a question: Should I choose the cheaper one, or is it cheaper because there's something wrong with it, in which case should I go with the 90p one? Some people would instinctively buy the cheaper one, others the more expensive, depending on the reasoning. After all, one of them might simply have the wrong price on it. Similarly, denim is denim but if a pair of jeans has a designer label on it, it can cost many multiples of the cost of an unbranded pair. So can this strange human quirk be applied to all areas of spending? For example, is there going to be any difference between a loan with an APR of 8% and one with 16%? In other words, should the cheapest loans be snapped up or avoided? Boiled down to basics, money is money, and if you spend