If you have it, you can't use it

Most financial people associate personal loans with risk, so they tend towards secured loans. A loan can be secured by an asset, but it can also be secured by a saving account. Let's say you have $20,000 in your savings, and you want a $5,000 loan. $5000 would be frozen in your savings account ($15000 would be free) and as you pay back your loan, the frozen amount would decrease. This is great for the bank, because they are incurred almost no risk. The good thing about this is that the interest rate will be relatively low.

If you don't have a large enough savings account, your house or car can be used for secured loans. However, if you default on the loan, the bank has to repossess your asset, which can be messy and also embarrassing for you in front of your neighbours. As well, repo guys are usually not very nice and usually very strong. Probably there is not much room for discussion or negotiations.

If you must use personal loans or secured loans, pay them back -- it's the best way.