More seriously however, an unsecured personal loan offers consumers a great deal of flexibility and not only in what they spend the money on. Since it's not secured on your property both homeowners and tenants are eligible and unsecured loans can be arranged more speedily than a secured loan where you may have to wait to have your collateral approved. Personal loans are agreed at a set rate of interest, for a set period and a set amount. This means that there is no temptation to borrow more, as with a credit card, and you can budget effectively to manage the repayments.

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• Switching loans can save money - It is all too easy for consumers to become complacent when it comes to finances, and loans are one example of this. Many people remain with the same lender or the same loan set-up simply because it's easy and familiar.

Providing you are borrowing enough to get a good rate of interest and have a reasonable credit record, an unsecured personal loan can be a very good way of raising cash.