Loans made clear

If you want to borrow money to help you buy something, such as furniture, a car or a holiday, there are a number of lenders all willing to lend you the money - it’s never been easier to get a loan. But bear in mind you will have to pay interest on what you borrow which means that you’ll pay back more than you actually borrowed.

Here, we explain how loans work, how they differ and how to borrow sensibly. If you’re looking to borrow money to buy a home, then see our Mortgages section.

Firms lending money to customers must be licensed by the Office of Fair Trading (OFT) under The Consumer Credit Act 1974. The Act requires certain credit and hire agreements to be set out in a particular way and to contain certain information.

For useful tips on borrowing see the Consumer Direct website in Related links.