Don't borrow more than you need
Assess how much money you need and don't borrow more than that. This general rule applies to all types of borrowing situations. For example, if that new kitchen you want to put in will cost £3,000, apply for a loan with that figure in mind. The more you borrow, the more you'll have to pay back. It's best to only incur payments you can make regularly out of your current income.
To see whether you are in a position to borrow money, and how much you can afford to borrow, the financial services authority has a debt test and a budget calculator that could be useful.
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