Loans—they are necessary if you are planning to buy a home or a car. It can also be used for scholarship in your college. Loans can either be good or bad, since there are two types of loans; secure and unsecured loans. Secured loans can be a big problem. If you cannot make payments on secured loans you may lose whatever collateral the loan was secured with such as your home or your car. Unsecured loans can eat you up with rising interest.