We’ve all felt the loss of pride inhaving to ask for help. But how many of us feel guilty about asking a bank for money? Some of us aren’t shy with loans, and the banks are counting on it!

Whether it’s your dream home or holiday, a new car or that college education, securing a loan offers a short-cut to goals; the quick road to happiness. Just make sure you don’t get side-tracked while paying back what you owe. Nobody wants to end up in the dark alley of debt.

1. Do your research. Assess rates, packages and institutions before deciding on anything.
2. Read the fine print on contracts, or pay a professional to do it for you.
3. Make lenders compete for your loan online. Sites like E-LOAN do it best.
4. Watch out for fees like private mortgage insurance (PMI). PMI is insurance that you are compelled to take out by the bank if you are putting down less than a certain percentage (usually 20%) of the total purchase price.
5. Be wary of locking in to a Fixed Rate Mortgage. If interest rates fall below the agreed rate, you may be out of pocket in the long-term.
6. Always secure home insurance (most home loans require it) from your settlement date in case of flood, fire or damage.
7. Get a credit report in advance before applying for a loan.
8. For those on lower incomes, consider a loan application through the FHA mortgage insurance program and its HUD Homes program. (pop-up window)
9. Don't be pressured into accepting an auto loan from a car yard. Their interest rates are generally higher than the banks.
10. Make extra payments on your loan if you can. It will reduce interest and give you room to move if you find yourself having to default on some payments.