Personal loans are easy to compare badly. The monthly payment usually gets the most attention, but it is only one part of the cost. The borrowing amount, interest rate and loan term all matter.

Enter the same loan amount into a calculator and try a few different terms. A longer term can reduce the monthly payment, which can feel more manageable. The trade-off is that interest has more time to build up, so the total amount repaid can be higher.

For example, borrowing £5,000 over two years may cost more each month than borrowing it over four years. The shorter option can still be cheaper overall because fewer interest payments are added.

Check the annual percentage rate, whether the advertised rate is likely to be available to you, and whether the lender charges for early repayment. Some loans allow extra payments without a penalty; others do not.

The Loan Calculator is useful for a first comparison. Use the same figures for each option, then look at both the monthly repayment and the total interest before deciding what fits your budget.