With so many outgoings and not as much coming in people are being stretched financially yet still have to find ways to pay increasing bills.

One longer-term solution that some people follow is to obtain a personal loan and pay it off on a monthly basis. Depending on the deal you get this can turn out to be a godsend or a burden.

Many people now check loan comparison sites – ask around financial forums and discussion  boards to get an idea of what’s worked for other people.

Work out how much you will be able to borrow by looking at how much you can afford to pay back every month, while still having money left over as a buffer. This way you will not get into difficulties and feel overstretched again if some unexpected financial burden hits you.

Before committing to any one loan or lender it is a good idea to check out one of the many online loans calculators that are available; don’t worry they are easy to use and with the competition between lenders you should find one on most sites. The loan calculator requests an amount to be borrowed and the desired length of time to pay off the loan. The calculator will then return the APR, total amount to be repaid and the amount that the borrower should repay every month.

Remember that this is not definitive; the actual deal will depend on your situation, but it is a quick and useful indicator of what you could expect and should help you gauge whether you can afford it . You could then compare that deal with another lender.

If you get into trouble keeping up with payments don’t waste time - let your loan company know as soon as possible, keep in mind that if you do waste time the consequences on your future borrowing and credit record can be severe. Get in touch as soon as possible and renegotiate a payment plan.

Whichever ways you decide to gain extra funds make sure that you do plenty of research and stick to the figures you decide on.

Always use a reputable provider – try Santander for some highly competitive rates on personal loans.