Check the loan agreement to see how much you’ll be expected to pay back every month; with most loans you’ll pay back the loan amount plus any interest in monthly instalments.
If you can’t pay this back you’ll often be charged, making the loan even more expensive. Missing payments will also affect your credit rating, making it harder to borrow money in the future.
If you already have a budget, make sure you have enough money each month to cover it. If not, make a list of your income and your essential spending in a typical month to see how much is left over.
Is there enough to cover the monthly repayments? Remember to factor in some spending money too for non-essentials, otherwise your loan repayments could leave you with nothing come the end of each month.
More about setting a budget