You need to give careful consideration before entering any loan agreement.  Debt is a growing problem among young people – and not only those with low incomes.

A lot of organisations are set up to lend you money.  The best thing to do is to borrow money from a trustworthy organisation, like a bank or a building society.  However, you still need to be careful.  You can easily get carried away with borrowing so make sure you work out exactly what you need and if and how you can pay it back.

You might decide that you would like a credit card.  There are a lot of different types of credit cards; some are issued through banks and others are issued through other organisations.  Before applying for a credit card make sure that you check the terms and conditions.  They are not always the same for every credit card so, again, it’s best to shop around.

Store cards are issued by shops that run schemes very similar to a credit card.  The APR is usually very high with such cards and it can work out to be very expensive.  But they do offer advantages for card-holders, like discounts.

An overdraft is issued by your bank and you can use it to pay for things on credit.  It is a cheaper way of borrowing than using a credit card but you must keep to the agreed overdraft limit or you will be charged by your bank.  Overdrafts are paid off as money goes into your account.  Sometimes your bank will give you an interest free overdraft, for example, if you’re a student.

Whatever your situation, it's best to talk to someone before entering into any kind of loan agreement and not to rush into anything.