For big-ticket purchases, personal loans can be used instead of credit cards to fund a new boat, overseas holiday or home renovations.
The process is pretty simple. Once your loan is approved, you normally pay a fixed set-up fee and typically an ongoing monthly fee after that.
Loan terms can range from 1 year to as much as 7 years, with a set repayment schedule - consisting of interest plus principle for the life of the loan.
Some personal loans let you make earlier repayments, but beware, this can come at a cost. Furthermore, if you decide to terminate the loan early then an exit fee might be payable. Therefore don't take out a loan for a much longer term than you think necessary.