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Such a loan might be portion of a split loan where interest and principal is paid for 1/2 the loan and the other half is interest only. As far as holidays go, a personal loan is a more desirable method to avail finances than the greatly advertised buy-now-pay-later credit card method. People going through poor records due to CCJs, IVAs, defaults, arrears, and bankruptcy can easily access the funds through the bad credit loans. This proves extremely advantageous in the long time as the person can save hundreds of pounds on the interest being paid over the loan term.