New Delhi, Feb. 4 -- Are you planning to go on a vacation by taking out apersonal loan? This is obviously not a good idea. A personal loan is anunsecured loan which levies a high rate of interest from borrowers.

To avoid falling into adebt trap, one should refrain from taking out loans for such purposes as travel. These are some of the key disadvantages of personal loan that you should be aware of before you decide to take one.

1.High interest rate: Being an unsecured loan, it has ahigh rate of interest. This adds to your liability significantly. Therefore, it should be avoided.

2.Discretionary spending: Being a discretionary expense, one should avoid spending money raised via loan onvacation. Instead, one should save money before deci...