When is it a good or bad idea to take out a loan?

Experts explain when you should and should not take out a loan (Alamy/PA) - (Alamy/PA)

As the UK experiences a cost-of-living squeeze, it’s never been more tempting to borrow.

Loans can smooth out big life purchases and spread the cost of essentials, but they can just as easily deepen money worries if they’re taken on for the wrong reasons or without a realistic plan to repay them.