Almost everyone will have some sort of debt in their lifetime. Whether it is just a mortgage or it is a payday loan to get through a particularly rough month, taking out a loan is a good way to give yourself an injection of cash when you need it most.

However, getting into debt for the wrong reasons can cause some serious problems. For example, if you decide to take out a loan to buy a wardrobe full of designer clothes but then find that you can’t make the repayments, you stand to lose far more than your wardrobe but may have to sell off lots of your things to cover the interest.

While there are lots of sensible ways to get fast cash now, you should always ask yourself these 3 questions before you sign on the dotted line and commit yourself to the repayment scheme. This is a good way to figure out whether you are taking out a loan for the right reasons and when saving up might be a better idea.