It’s important to understand the difference between good debt and bad debt
What questions should you ask yourself before taking out a loan? Photo: Getty
Taking out a loan is generally not encouraged when financial planning. We are mostly taught to believe that debt is bad. However, loans may be unavoidable at certain times, or even too tempting to resist when repayments look manageable.
The latest figures from the Banking and Payments Federation Ireland (BPFI) show that there was a record number of personal loans taken out in the third quarter of last year – 73,626 in total.