Most people typically clear their loans on a regular monthly basis, taking from anywhere between one and five years.

For sums of between £1,000 and £25,000, the personal loan is these days typically the first part of call for millions of people needing a bit extra - many borrowers will use their loans to consolidate other, more expensive debts such as outstanding credit card balances and bank overdrafts - but of course millions use them for major purchases such as motor cars.

As a general rule of thumb, the more you borrow, the cheaper the rates of interest. So if you want £1,000, you could be looking at rates as high as 20 per cent - the lenders say this is because of the relatively high administration costs involved in arranging loans. Sums of this size are often better put on a low cost credit card, or run as a bank overdraft.

But for the bigger sums, many will opt for a personal loan. Borrow £25,000, spread over say a five year period, and you could be looking at approximate rates of six per cent.

Borrow any amount from £1,000 to £25,000 with a fixed interest rate unsecured loan so you know what your monthly payments will be. It’s ideal for a car loan, debt consolidation loan, taking a holiday or making home improvements.