Since the start of the recession loans of any description have been harder to come by and if possible, should be avoided. But if you do really need a loan and simply no choice but to borrow then make sure you choose the most flexible and cheapest deal that is available.

Its goes without saying to shop around to get the best deal. This could be by looking through the national press, TV, magazine, internet or actually going out down your high street and calling into each lender to get a broad range of choice in order to help you make up your mind.

With the cost of borrowing on the increase, it is more important than ever to shop around. A deal that seems fantastic today could no longer be available next week. Do not simply accept what your bank is offering you ' its an open market with plenty of completing lenders trying to get your business. The cheapest personal loans are usually available online where you are not indirectly paying for the overheads incurred by those lenders who have a presence on the high street employing hundreds or even thousands of staff.

Be aware ' do not make too many loan applications ' especially if you have been turned down - and be clear about exactly what kind of loan you need and for how much. You could be leaving a 'footprint' behind you which could put off prospective lenders willing to accept you.

Just like your mortgage, making overpayments on your loan will mean you pay less interest and subsequently become debt-free much quicker. However, not all loans offer the opportunity to overpay, so check this out and ask the question before you borrow.

Be aware of any overpayment charges in case you do want to pay off the loan earlier should you come into a windfall and want to clear the debt early.