Before you borrow money, calculate the amount you need to pay by budgeting the installments and paying off your bills by consolidating them. Be mindful of the terms of the loan. If you have multiple debts or high-interest loans, consolidating them into one personal loan and paying it off makes sense. Make sure you pay your instalments without fail, as it might negatively affect your credit score and reduce the chance of getting a loan in the future. A good credit history and score show creditors that you maintain your credit commitments by making timely payments.