Taking out a loan is a quick way of raising finance for a large purchase. There are many different financial institutions offering loans, each with different interest rates and terms and conditions.

Generally, the longer the repayment length, the greater the interest. So aim to try and pay off your loan as soon as possible. But make sure there are no fees for paying off your loan early.

You should never take out a loan to pay off another debt. This can work out to be more expensive and will affect your credit rating. See the debt section for advice on what to do if you are in debt.