If you're taking out a sizeable loan, the idea of payment protection may sound like a good idea. Programs such as these protect buyers in the event that they are unable to make payments on the loan due to events such as layoffs or medical emergencies. All types of loans offer this type of protection, from unsecured credit cards to secured loans such as mortgages. But what's the real cost of this protection, and is it worth it? An estimated one billion pounds are spent on buyer protection insurance each year.

Almost every time you apply for a loan or other form of credit, you are asked if you would like to purchase credit insurance. It my even be automatically added to your contract without you noticing. This is an insurance policy that guards you against the risk that you will not be able to meet your repayments.

There are many people who find it difficult to get credit. People with a poor credit history, with defaults, arrears and County Court Judgements (CCJs) may find that credit card companies and banks prefer to avoid them. That's why it can seem very attractive when someone is willing to overlook their financial history and give them the loan they desperately need. There are many lending firms that operate from the high street who will visit your home to discuss borrowing requirements. Many of their representatives walk around with large sums of cash and will offer an on-the-spot loan for the amount you require. They will also tell you what the interest on the loan will be and negotiate a payment schedule. This is often weekly. The minute you accept the money, you owe both the money and the interest.

There are many credit options available to potential borrowers. Loans, credit cards, store cards and more are all available to borrowers with the right credit score. But what if you don't have the right credit score? If your credit profile features missed or late payments (defaults or arrears) and County Court Judgements (CCJs) you may find it difficult to get a loan. An organisation that promises a loan, whatever your circumstances, might seem like the answer to financial worries. Be careful, though, you could become the victim of an illegal lender or loan shark. Here are some signs to look out for.

As part of the Consumer Credit Bill the Department of Trade and Industry is changing it rules regarding loans. The changes are designed to make loan agreements clearer and easier to understand for consumers. The information should make shopping around for loans a lot easier. Information such as the total amount repayable and the annual percentage rate must be clearly displayed. This makes comparing different options a lot easier, for example, comparing low repayments over a long time, versus higher repayments over a shorter period.

Often we can be desperate for a loan. There may be something we dearly want to buy, or we may have urgent bills or expenses that can only be met by a loan. These are not the only reason people lie on loan applications. Sometimes the application can be very detailed and even intrusive, and a desire to avoid embarrassment or keep your privacy may lead you to be less than truthful. But no matter what the situation, it is almost always a bad idea to lie on a loan application.

The idea of data sharing is growing in popularity among lending institutions, creditors, and industry observers. While in the past, limited data on a person was shared, now more complete records are shared when a person applies for a loan. Information may be shared in relation to mortgages, personal banking, and personal loans. The idea is that with a widespread practice of data sharing, the mounting problem of over-indebtedness may be reduced and responsible lending practices increased.

Many people long for the perfect getaway, whether it is a day, two days, or two weeks. However, the idea of paying for that much-needed stress reducer is often enough to create more stress than the holiday reduces. To this end, some companies are offering holidays on credit. Consumers can choose from a multitude of packages offered at varying rates per month. This allows Britons to choose holidays that fit into their budgets, while knowing the monthly cost ahead of time. (Spending while on vacation is another matter...)

In late May 2005, the Department of Trade and Industry announced changes to loan rules as part of the Consumer Credit Bill designed to help consumers better understand their loan agreements. Lenders are now required to provide consumers with information that will help them shop around for the best deal.

People need money (or think they do) for a wide variety of reasons. As a result, the business of personal loans is a booming one. While many people typically think of standard purposes when "loan" comes to mind, the reasons for seeking a personal loan are far and wide. Not surprisingly, many people seeking loans want the funds to go toward large purchases or projects, such as buying or renovating a home, purchasing a car, or taking a holiday. But if you think that these summarise the typical loan, think again!