Loans are very common, and it is good to understand them. If you are going to loan someone some money, their reputation has to be good. Never loan more money than you think you can afford if they never pay you back. For if you rely on them paying you back, there is a chance that you will go broke.
The average student debt in Canada is past $25,000, and in 2013-2014, graduates finished school with an average of $12,480 in federal loan debt. Not so very good. Canadian student loans are payment-free until six months after you leave school, for after you pass the six-month mark, you will have to pay the interest rate. The fixed interest rate is around 5%, and the floating interest rates are around 2.5%.
Let us say that the total cost of the Vehicle you want to buy is at around 20,200$, and you are going to pay 3000$ right away. With a twelve month term and 2.7% interest rates, you would have to pay $1454 every month, and with a total interest of around $252. With that many people that have bad credits out there, some loans might be a little hard for some people to pay. So many people obtain debt by either student loans or vehicle loans. Whatever it is, always do your best to avoid a loan.
I think that loans should not be used regularly because they are not worth it, interest rates can REALLY add up.