Borrowing sensibly
Most of us need to borrow money at some point in our lives, whether it's just to tide us over 'til payday or make a big commitment like buying a new home. As the cost of borrowing can add up, and your needs can sometimes change, it's important not to over-extend yourself.
What's right for you?
It's important to choose carefully whenever you borrow money. What you borrow always needs to be repaid, and different types of loans are usually repaid differently. Most importantly, you should only take on the responsibility that comes with borrowing if you can comfortably manage the repayments.
Short-term borrowing, on things like credit cards and overdrafts, can give you more flexibility, but attracts higher interest. Long-term borrowing, such as mortgages and personal loans, tends to be cheaper but less flexible.
And remember, to keep your interest costs down, always make sure you pay off your borrowings as quickly as you can.