Budget – yes you still need one of these, even when getting a loan.

Taking out a loan means that you are required to pay it back. You need to work out how much you are able to pay back.

Be smart, make the right decisions about what you can give up or cut back on, instead of being stuck with a hefty repayment every month. Be realistic.

Have a budget in place

The best would be to have a budget in place, and to set aside the amount that is needed for the loan. If possible you should always try and pay more than the minimum amount – by doing this you will be able to pay off the loan quicker and end up saving some money. If, however, you fail to budget effectively, and are struggling to make payments, the end result will be a much more expensive loan in the end and it could affect your credit score negatively.

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