Whenever you find yourself in debt, particularly deep debt, you might also find yourself looking for an easy way out. This might lead you to consider a variety of loans.

However, taking out another loan just equates to taking on more debt. This is especially true if you take out a dangerous type of loan. The following describes five loans that nearly always hurt you, more than they help you.

Finance Company: Since these types of companies don’t require you to put up any property as guarantee for a loan it might seem very tempting to use them but borrowing from a finance company sets you up to get in more debt than you started. The reason for this is simple, the interest rates are high. Some can even go as high as 50%.

In the event you fail to pay back a loan from a finance company, you may be subject to fees and collection practices that are bordering on illegal. These types of loans aren’t worth the financial risk or the emotional hassle they come with.

Tax Loans: Every year, you probably find yourself looking forward to your tax refund. After all, they are often a good way to get a little cash in your pocket. But, even if you are anticipating a huge return, a refund anticipation loan is a huge gamble.

These types of loans are offered through private companies. The private companies prepare and file your taxes for you and then add on a fee. This means that a refund anticipation loan forces you to pay a tax preparation fee, a loan fee and the interest, which is typically high.

Obviously, refund anticipation loans are expensive, but they are dangerous in other ways. The tax return you anticipate isn’t a done deal. Your request could be denied, you could be audited, or the IRS could simply find that they only owe you $1000 and not the $5000 you were anticipating.

Payday Loans: In many areas, payday loans are illegal, yet the law is often skated around by using other names. But the business is still the same: risky.

When you go to get a payday loan, you are required to leave a check and, in return, you are given a portion of that check. If you leave a check for $1000, for instance, you may be given $900. The difference is kept as a fee. The lender will keep the check until your payday and then cash it. If the lender is unable to cash it (you end up spending your pay check on something else, for instance) they will access another fee. The fees are often ridiculous in relation to the loan and many people find themselves in further debt because of them. Thus, payday loans are a risk you shouldn’t ever be willing to take.

Pawnshop Loans: When you get a loan from a pawnshop, you are forced to leave your property. The owner gives you just over half of that property’s value. You have a set amount of time, usually a few months, to repay the loan. If you can’t, your property becomes property of the pawn broker. Now, in an act of desperation, going to a pawn shop might seem like a good idea: surely you can part with your diamond necklace for a month or two just to get by.

But, remember, pawnshops are known as sketchy places for a reason: they aren’t above ripping you off. Not only do pawnshops not loan out much money - you might make only $50 or $100 - but they also charge you interest, a high rate of interest. This makes pawnshops - in your best interest - a place to avoid.

Auto Titles: If your car is paid off, an auto title loan gives you the ability to borrow money against your vehicle. You still retain possession of the actual car, but the lender retains possession of its title. They also make a copy of your car key.

These types of loans are dangerous for several reasons. First of all, if you miss a payment, even one payment, the lender can take possession of your car. They can then sell it and keep whatever amount they make.  The interest rates of these loans are also sky high. Some lenders charge in the ballpark of 300% or 400% of annual interest.  These types of loan are very expensive, and can result in losing both money and your mode of transportation.

Taking out further loans when trying to get out of debt is like running on a treadmill: you get nowhere. Instead, other options, such as credit counseling, debt management, and debt settlement can help you get out of debt, without taking more on.