No matter how hard you try, you could find yourself dealing with a bad loan at some point. Maybe you’re in this position because you were in a hurry for money. Or maybe you’re in this position because you didn’t fully understand the terms and conditions of the loan.

Understanding the potential impact of a bad loan will help push you toward an informed decision. Here are three things you should concern yourself with:

• The high cost: For example, if you opt for a payday loan, the high cost of borrowing is likely to bite you at some point. These loans are known for extremely high interest rates, thus taking money right out of your pocket.
• Increased stress level: It’s bad enough when you’re facing an uphill financial battle. If you add a bad loan into the equation, your stress level will reach new heights. Unfortunately, things often remain this way until you’re able to pay back the loan.
• A more complex financial situation: When attempting to overcome financial difficulties, it’s important to simplify things as much as possible. A bad loan will do the exact opposite. It’ll complicate your finances, stress you out, and could even lead you to make more poor decisions.

If you’re currently dealing with the impact of a bad loan, make a list of the many ways to save yourself. It may not be easy, but there’s a strategy you can employ to reach your goals.

Conversely, if you’re concerned about making a mistake when taking out a loan, compare the pros and cons of each product. For example, a close look at the drawbacks of a payday loan will soon have you considering a more reputable financial tool.

Don’t let a bad loan impact your finances and personal life. Even if you’ve made a mistake, there are changes you can make to get back on track.

It doesn’t matter if you’re applying for your first credit card or have many years of experience using this financial tool, it’s critical to take the necessary steps to protect yourself.

The best thing you can do is review the terms and conditions of a credit card before completing the application. This will give you a clear idea of what you’re getting, what you’re not getting, the benefits, and the potential drawbacks.

Here are some of the more important questions to address:

• What is the interest rate? The answer to this question will give you a clear idea of if the credit card issuer is trying to take advantage of you. Although there are regulations in place to keep rates in check, it doesn’t necessarily mean you’re getting what you deserve.
• Can your interest rate change? Don’t assume that your credit card has a fixed rate attached to it. If it’s variable, you may find it changing more often than you would like. Also, there may be reasons why your issuer can increase your rate, such as if you miss a payment.
• Do you understand the fee schedule? There are fees attached to every credit card, so make sure you know when these come into play. For example, a late fee is charged if you fail to make the minimum payment by the due date. Foreign transaction fees are charged if you use your credit card out of the country. When you understand the potential fees, it’s easier to avoid paying them.

Unlike a loan shark or payday lender, credit card companies must comply with many federal regulations. While this protects you to a certain degree, you could still find yourself stuck with a card that’s not in your best interest.

What process do you follow to review the terms of a credit card before applying? Would you add any other questions to the three above?

Are you facing financial trouble? Are you considering the many ways to obtain funds that will allow you to bridge the gap until things get better?

Many people make the mistake of looking for “fast” money, such as through a payday loan or a relationship with a loan shark. While fast funding is a good thing when you’re facing financial difficulties, you don’t necessarily want to go down this path. Here’s why: you may enter a cycle that’s difficult to break, thus costing yourself more money over the long run.

A personal loan may be the perfect solution for a variety of reasons, including the following:

• No collateral: As an unsecured loan, there is no collateral associated with a personal loan. Instead, the final decision is based primarily on your credit history and credit score. If you have a good, very good, or excellent credit score your chance of approval is much greater.
• Use the money however you best see fit: Some people use a personal loan to consolidate their debt, such as credit cards and medical bills. Others use the funds to pay for a necessary home improvement project, such as a new roof. As long as it’s legal, you can use the funds from a personal loan however you want.
• Competitive interest rate: This is based largely on your credit score, but a competitive interest rate is one of the primary advantages of a personal loan, especially when compared to a payday loan and similar products. A lower interest rate results in a lower monthly payment, as well as less money out of your pocket over the life of your loan.

Adding to the above, it’s nice to know that you can apply for a personal loan online. This goes along with the ability to consult with your local bank about your options.

Don’t make the rash decision to borrow from a loan shark or obtain a payday loan. If you take the time to consider your options, you may soon realize that a personal loan is what you’ve been searching for.

Do you have any past experience with a personal loan? Were you happy with the terms and conditions? Are you interested in this type of loan again?

Are you concerned that you’ve taken on more credit card debt than you can handle? Are you beginning to consider all your options, including some that are less than ideal?

If you answered yes to these questions, take a step back to assess your situation before you make any financial decisions.

For example, you may find yourself gravitating toward a payday loan. This sounds like a great idea, as you’re able to get your hands on the money you need in a timely manner. Not to mention the fact that your credit score and history don’t have any impact on your approval.

But there’s a problem with this: you’ll pay an ultra-high interest rate, all while jumping into a cycle that’s difficult to break.

If you go down the wrong path, your difficult financial situation will become even more challenging in the future.

Fortunately, there’s an answer: a balance transfer credit card.

With this, you can move all of your credit card debt onto a single card. The benefits of this strategy include:

• Zero percent introductory rate
• Easier management of your credit card debt
• Better terms than your other credit cards

When you’re stressed over your finances, it’s easy to make rash decisions and hope for the best. Unfortunately, the best doesn’t always come. Instead, you end up digging a deeper hole.

A balance transfer credit card isn’t the answer to every financial problem, but there are times when it can help you avoid a disastrous situation.

If you’re ready to consider this option, here are some questions to answer:

• How much credit card debt do you have?
• Is a balance transfer the best way to consolidate your debt and save money?
• Are you okay with the idea of paying a balance transfer fee?

After you answer these questions, you’ll have an easier time deciding if a balance transfer credit card can help.

Even if you don’t use a balance transfer to your advantage, avoid payday loans and loan sharks at all costs.