The number of payment protection insurance (PPI) policies being mis-sold by banks and building societies has recently been on a steady increase. This has been closely monitored by the financial watchdog for some time now and finally the banks have been forced to review their sales techniques to bring the total number down. The banks and building societies have been left out of pocket and have now been forced to make the lost revenue on unsecured loans.

Rates have been increased by lenders on unsecured loans to retain profit in the sector. One of the leading providers have seen an increase of 1.7% on its £5,000 unsecured loan, seeing its rates increased back to back in twelve months climbing from its original 6.7% to 8.4%.

This was an obvious move from lenders as PPI was becoming a serious problem, policies being mis-sold have been spiralling out of control recently. PPI can be a life saver and is recommended for many. If you purchase your PPI, you need to ensure you read the small print thoroughly and also make sure you get the cover you will need.

Cheap unsecured loans are still available and can easily be obtained by simply shopping around. Some lenders are offering an interest rate as low as 6.7% for a £10,000 unsecured loan repaid over five years, so you end up paying £199 per month.

A good thorough search on the market and an in-depth read through your PPI policy will ensure you have a less expensive and comfortable experience when it comes to borrowing money.

To find the best unsecured loan deal, you are better off using a price comparison site, they search the leading loan providers for you to ensure you get the cheap loan you desire.