First of all, there is no disgrace in taking out a loan. After all what is a mortgage? How many people do you know who can buy or actually own their home outright? Therefore, they have borrowed money to buy their property and have had money lent to them to make the purchase - a loan.

You have to make a choice, you can either borrow money on a Credit Card or you can take out a loan. The key factor is interest. Shop around for the best rate, we would recommend you look for a fixed rate for the life of the loan, that way you know what rate you will be paying until it is paid off. The drawback with a credit card is that Credit Cards are affected by other interest rates such as the Bank of England, which make their rates fluctuate.

Their are two main types of loan secured or unsecured. Unsecured or personal loans are based upon your income and Secured or homeowner loans are taken out against your property. Both have their problems. An unsecured loan will usually only allow you to borrow a small amount, as it is based upon the amount you earn. A secured loan is lent against the equity that you have in your home, no equity - no loan.

The key to taking out a loan is Insurance. Make sure you take out insurance as this protects you against loss of income. This is often described as income protection. Whatever, the name it is essential, many lenders will insist that you take this out, before they will grant the loan.

Whatever, your decision, take it very seriously. Realise that it is a commitment for many years and will not go away. Don't over-stretch yourself and don't fall behind with your payments. Seek advice if you need it and good luck in making the right choice, we hope we've helped.

If you would like to look at a selection of loan companies and their products, here's the link: