We almost all need some kind of consumer credit from time to time and when we do it can save us hundreds of pounds if we can identify the type of borrowing most suited to our needs.

One of the most popular forms of borrowing money is to take out a loan. Securing a loan against your home or any other property means you can borrow money and at lower rates, however if you can’t make the repayments you could risk loosing your home.

Overdrafts can be really handy if you just need a bit of leeway each month, but often expensive if used for long term borrowing.

Credit cards are another excellent form of credit but only if used wisely. If its likely you’ll build up a debt on your card and can’t clear that debt each month then high interest repayments will make credit cards an expensive form of borrowing. If you can afford to clear the debt each month then you can take advantage of cash back rewards.

Another option for homeowners is re mortgaging their homes to unlock the capital tied up in their property. The rates are normally low but its worth remembering that you could be paying off your mortgage well into your previously planned retirement.

The amount of people getting into financial difficulty is growing and expected to continue growing. That’s why our sites heavily promote money management and careful thought before undertaking any form of borrowing. Before you make any borrowing decision you should evaluate your need to borrow the money with the help of the budget planner then find out what each loan will cost with the cost calculator.