Have you ever found yourself at a point in your life where you need to take out a loan? The vast majority of people see the need for borrowing at one time or another. Sometimes it’s for an emergency, but not always. Consumers and working adults from all walks of life pay for the luxury of using someone else’s money for events and situations of all kinds, including tuition, medical bills, starting a new business, taking a much-needed vacation, and so forth. It’s helpful to know the most common kinds of loans before an emergency hits, or before a circumstance arises in which you need to borrow. Having advance knowledge is a good thing. The following list summarizes the pros and cons of five different methods of borrowing.

The Pros and Cons of Common Loan Types