The solution to debt is simple - don't borrow! Of course, that is not always a realistic option, but ask yourself if you really do need a loan. Is your purchase absolutely necessary? Could you save rather than borrow?

If you do borrow, there are ways to make sure that you do not take on too much debt.

Shop around before you choose a loan. The loan market is competitive and you will find that lenders will work hard to gain your custom by offering favourable rates. Remember to use the APR when comparing different loans. And only ever go to reputable lenders. Loan sharks do exist and they will charge you extortionate rates of interest and will be far from lenient if you are unable to make your repayments.

Try to repay any loans as quickly as possible. If you have spare cash, use it to repay your loan. This will reduce the amount of interest you have to pay.