…Banks, credit unions and some dealerships offer auto financing. Investigate which will give you the best interest rate and terms before you hit the showroom. The most significant factors that determine the length, interest rate and monthly payment of your loan are: credit history, trade-in value of your old car, and down payment. Other details to consider are rebates, special loan options and other incentives. You can easily find an auto loan calculator on the Internet that will show you just how much car you can afford and which option will save you the most in the long run.

Mortgages

Borrowing for a home will likely be the largest and longest loan you will take. As such, it is imperative that you shop around for the best interest rate. A fraction of a percent on your home financing can equal tens of thousands of savings over 30 years (the typical life of a mortgage). Luckily, financing and purchasing a home is an investment (unlike buying a car) with opportunities to refinance or borrow against your home's equity.

Personal and Student Loans

Personal loans differ from home and car loans in that they are not secured by property such as real estate or an automobile. Personal loans offer flexibility in that they may be large or small and can be used to pay for anything from home improvements and vacations to paying off high-interest credit card debts or other loans. However, while defaulting on an auto loan results in the repossession of your car, failing to pay your personal loan may authorize the lender to garnish your wages, seize your bank accounts or force you to file for bankruptcy. Loans and credit are necessary for the major purchases that propel us on to the next step in life. Take time to understand and research your options in order to save the most money and manage your debt well.