Not everyone wants to borrow large sums of money, despite what the lurid tabloid headlines say. Plenty of UK citizens are fully aware of the pitfalls of owing large amounts on credit cards and personal loans.

However, at times most of us will need to take out a finance agreement - maybe to buy the car we need to get to a new job, maybe to start a business or pay for some education. The biggest purchase any of us are likely to make will be a house, but for most of us, borrowing between £1000 and £5000 is the usual figure.

For many people the first port of call will be their bank where they quickly discover that the great rate advertised on the poster is not on offer to you. Why not?

Firstly, you may not be asking for enough. That’s right: the best rates are reserved for those who want more. Secondly, you might be wanting to pay it back to soon, because banks prefer to spread the payments - and thus get interest out of you - for as long as possible. Lastly, your credit rating may just not be up to scratch. And that can mean anything from “not married” to “moved too often” to picky lenders.

If you’re financially savvy you can take out a series of 0% credit cards. This method, nick-named Rate Tarting, is where you borrow a lump sum and then make regular repayments until the deal runs out. Then you switch to another 0% card.

However, whilst it doesn’t take much work to set up a regular standing order to pay off the loan, you do have to be aware of when the rate runs out and be prepared to switch. You must also never miss a payment - if you do, you’ll find that 0% rate disappears in an instant, replaced by the lender’s highest rate.

Most importantly of all, however, is that you mustn’t put any more purchases on your card, and that can be the hardest thing of all for impulse spenders.

For those who fear that they don’t have the self-control to not spend, a personal unsecured loan is probably still the best deal for you.

As long as you make your repayments on time you will actually be improving your credit rating. This will stand you in good stead down the line should you want to make a bigger credit purchase, like a house.