Secured Loan You can use your home as security for a loan, so this option is only available to you if you own your own home. If you fail to repay the loan on time the lender could repossess and sell your home to cover the debt.

Unsecured Loan With an unsecured loan your property cannot be repossessed but you are legally obliged to repay the loan according to the terms agreed and could face penaties or court action if you don't.

In selecting a loan do consider your needs and, particularly for short term needs, look at alternative options like bank overdrafts, credit cards or in store finance deals. For long term needs a mortgage advance may be an alternative option.

Always read the small print carefully and do shop around.

We recommend seeking expert advice in selecting the most appropriate loan for your circumstances. moneyjungle.net does not offer financial advice but we can connect you with an impartial, FSA qualified adviser.

Click here and complete a simple form and an adviser will call you back to discuss loan options tailored to your needs.

Before applying for a loan it is worth checking your credit report. You can see your Experian credit report for free with a 30-day trial of CreditExpert the online credit monitoring and identity protection service.

For more information on personal loans see the FSA moneymadeclear website.

Payment Protection Insurance

Payment Protection Insurance (PPI) can offer security and peace of mind but be sure to check that the cover offered is appropriate for your circumstances and make sure that you understand what the cover costs.

Many people have paid for expensive payment protection insurance when taking out loans, only to find that a claim is turned because of exclusion clauses in the small print. PPI can add anything up to 50% to the cost of loans.

It may be that the terms where not fully explained or that the cover was unsuitable for an indivudual's circumstances. Anyone who feels that they were mis-sold PPI should complain and seek compensation.

The first thing to do is to contact the company that sold you the policy and give them a chance to respond. If you are not satisfied your next port of call is the Financial Ombudsman Service. The Financial Ombudsman Service website includes helpful information and a fact sheet you can download. See also guidance on the FSA Money Made Clear website.

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