It could be either. Lenders - building societies, banks or credit card companies - may be no worse than a pub landlord anxious to make an honest living. But they often continue to serve drinks to customers who have had one too many.

However, so many are more like your friendly neighbourhood drug dealer. They see someone who's in need of aid and offer him 'introductory free credit' - '0% on your credit card'. You take it and feel happy. Then later you need a little more. This time there is a lot of interest to pay - but you are already hooked. As your total debt goes up, and the interest charges with it, you need more and more credit to stay on top. You could go to another lender and they might offer to 'consolidate' your debts - at a higher rate of interest or with huge 'administrative charges'.

Sooner or later you cannot or will not pay any more. That's when the lender (dealer) starts turning nasty. It begins with the threatening letters, then the phone calls and before long its the Court summonses. Finally they send the bailiffs - round to sort you out which is where the real trouble begins.

A bit of an exaggeration, perhaps. But it is very easy to become dependent on credit unless you are absolutely clear about:

o Why you are borrowing

o The type of loan you want

o How much it will cost you

o The all so important terms and conditions of the loan

o Who you are borrowing from.

Let's look at each of these in turn.

Why are you borrowing?

As a general rule you should not borrow money in order to pay for your day to day cost of living. You should only borrow for a major item which will give you some benefit for a number of years e.g. a car, a house, a big domestic appliance etc.

Types of loan

There are many different ways to borrow. The main ones are:

o Mortgages

o Second mortgages

o Overdrafts - 'authorised' and 'unauthorised'

o Personal 'unsecured' loans from a bank

o Hire purchase

o Credit cards

o Store cards

o Store credit/extended credit/free credit

o Catalogue credit

o Credit unions

o Doorstep credit

How much will it cost to borrow what you need?

There are huge differences in the costs of different types of hummingbird loans direct tribal installment loan. A mortgage for house purchases might be as low as 4% per annum while doorstep credit can be up to 200% per annum. The differences between lenders for the same type of credit can be much bigger than you might think. It always pays to shop around.

Just as important as the interest rate are the terms and conditions. The dreaded small print can contain the conditions which will add a lot to the overall cost of the hummingbird loans long term loans no credit check direct lender - administrative charges, minimum loan periods, penalties, charges for early repayment - even compulsory insurance against redundancy. Always read the small print before you sign up.

First, let's look a bit more closely at the interest rates and in particular some of the mischief banks can get up to. They are trying to make the deals they are offering look a lot more attractive than they really are.

When you are looking for ways of borrowing money (or saving it for that matter) you come across a whole range of technical terms. They are used by companies to confuse you rather than to inform you. You will probably want to throw your hands in the air and say 'that's too complicated - I'll take the deal with the lowest rate in the advert.' Don't! That's exactly what they want you to do. In the confusion you just sign up rather than examining it all as thoroughly as you should do.

The figure to look out for is the APR (annual percentage rate). This figure is an attempt to provide a standardised method of calculating interest charges so that people can compare like with like. Unfortunately it has not turned out quite as simple as that. It recently took a Cambridge mathematician several hours to work out exactly how the APR quoted by a major UK bank had been calculated.

But APR is probably the nearest you will get to finding a way of comparing the rates of lenders, so this is the one to look for. Its not the only rate that you will see quoted though. Many mortgage lenders quote a very low looking rate in large type and then put a different (and usually higher) APR figure underneath it in smaller print. Ignore anything other than APR. Remember, it's all about confusing you rather than informing you.

Base rate is also mentioned. You will often read that a variable rate will be 1 or 2 % above base rate. Base rate is linked to minimum lending rate (MLR). MLR is the minimum lending rate at which the Bank of England is prepared to lend to other banks. That may not sound as though it matters much to you. It is, though, the basis on which all other rates of interest are charged by building societies and banks. You may be surprised by how much base rate has gone up and down over the years. This is important because in recent years interest rates have been fairly stable and in historical terms, very low. Since 1990, minimum lending rate has ranged between 3.75% and 15%. You should therefore think hard, about what would happen to your finances if rates went up to even by 6% or 7%.

Who are you borrowing from?

Don't borrow from loan sharks. Easy to say, but how do you recognise them? You can't exactly spot a telltale fin in the ocean when are out looking for a loan. Some very gentle looking old man can turn out to be a great white. Building societies are mostly OK, but banks are a different matter altogether. Some of the biggest and most well known banks are the ones to watch out for. Forget the image of the friendly 'high street' banks, which they spend millions on cultivating in TV adverts. Remember, you, the borrower, are paying for that advertising. The banks are there to make as much money out of you for their shareholders as they possibly can. Sure, there is a Code of Banking Practice. But that doesn't stop some banks from offering hummingbird loans tribe no credit check loans which are very close to daylight robbery. So check out what they are offering you very carefully. Don't be taken in by the attractive, smiling woman at the desk in the plushly carpeted reception area (you're paying for the carpet too). Check the small print on any leaflet she gives you and ask the right questions.