Types of borrowing
"Forearmed is forewarned" might seem an old-fashioned expression, but it's very true! The more you understand about the types of borrowing available, the more you can make them work for you.
Borrowing money to pay for things you want almost always costs more in the long-term. So for big purchases like a house or a car, or home improvements, it makes sense to borrow.
But if you are using loans to get through day-to-day costs of living, then this might suggest your borrowing is unsustainable.
Before you borrow any money, it's a good idea to ask yourself how you are going to repay the money and find out what would happen if you're unable to keep up the repayments.
There are a number of ways you can borrow money, including bank overdrafts, credit cards, mortgages, loans.
Top tips
- Use price comparison websites to check out the best deals on loans, credit cards and mortgages.