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From a mortgage to a credit card, there are plenty of ways to borrow money.

It's never a good idea to borrow money and pay interest.

But if you're going to, at least try to avoid loans with ridiculously high rates.

Here in no particular order are some dumb ways to borrow money.

First, payday loans. Specializing in customers who have few other options, expect to pay 10-20 percent per month: annualized rates can reach 300-400 percent.

Next, pawn shops. You give them an item to hold, they give you a loan and charge you 5-25 percent per month, depending on your state's laws.

Then we have cash advances from credit cards. You often pay an upfront fee, then pay up to 25 percent interest. And the interest clock starts ticking immediately.

Then there's buy here pay here car lots. According to the Center for Responsible Lending, interest rates on these loans average 24 percent: 3 to 4 times the average rate for used car loans.

Finally, borrowing from friends or family. Sure, the rate might be right, but this could ruin important relationships.

Bottom line? These things are absolutely last resort. Better idea? Build an emergency fund so you don't have to go down this road. Want more information? Just go to MoneyTalksNews.com and do a search for "loans."

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