Demand for money is a common issue in everyone’s life. Whenever the income we earn is not sufficient enough to meet the demands, what will be the alternative we’ll be going for? Obviously, people will go for personal loans and other such possible financial resources. Here is where people fail to check for safety. On account of immediate needs people run behind huge loans with very huge interest rates and that’s where problem rises. When coming to personal loans, there are only fewer possibilities for every loan to be 100 percent secure because personal loans may be insecure too.

You can very well understand this fact because insecure loans are easy to get. Of course whenever loans are obtained easily then you must give more thoughts before putting your signature. Usually what happens is that we believe the words of the sales person completely and so we accept all the terms and conditions stated. This is the greatest mistake people used to commit when receiving loans. There are some basic things to be enquired before involving yourself in any financial commitments.

The first thing to be aware is about the loan you are applying for. Your credit score plays an important role. If you have a bad credit score then obviously the financial institution may ask for some sort of collateral. The next thing to be taken care off is the APR. You need to calculate what the value of APR is going to be. Speaking about APR, they are not exactly the actual interest rates. APR includes all the additional costs like paper costs, lender costs, delivery costs, setup costs and sometimes payment insurance which may not be specified directly.

You should be very careful with the fact that Payment Protection Insurance should not be included with your APR or with your monthly installments through any means. Get to know the real intention of the financial organizations. If they are compelling you continuously then justify your side and refuse that they are not necessarily to be purchased. Many countries especially United Kingdom is going through a tough time because of the controversies regarding Payment Protection Insurance. Lots and lots of people have been put into trouble because of the mis-selling of PPI. An incredible number of people are being paid back due to the mis selling of Payment Protection Insurance. These people were trapped since PPI was labeled as a compulsory additive to the monthly loan payments.

Apart from personal loans there are many other ways by which PPI can be mis sold to the customers like credit cards or mortgages. If you are one of such people who have been mis sold with PPI then you have wasted nearly 40% of your loan amount and the very next thing to be done is to file your claim as soon as possible.