Secured loans are Britain’s premier debt tool
Secured loans have become the premier way for British consumers to clear their outstanding debts, one source has revealed.
A recent report released by financial comparison site Money Extra, reveals that consumers who are managing high value debts, are turning to secured loans due to the extended repayment terms that are offered through this form of finance, as well as the facility to borrow larger amounts.
The discovery was made by site analysts, whilst looking into possible reasons as to why credit card borrowing had reduced so substantially in the first two months of 08, it is also believed that restrictions with regards to transferring balances onto other cards has also pushed many people into clearing their balances completely, through the use of a secured loan.
A spokesperson for the site commented that for some consumers, a secured loan could present an extremely sensible and convenient solution towards managing their debts. In the case of credit card borrowings, typical APR’s are often very high which can often cause consumers to overpay by default. In the case of a secured loan, although the term will be increased quite significantly, the actual rate of interest that they pay back will be much lower.
In related news, a popular finance school, has recently announced plans to roll out classes in money management to Britain’s adult population, of which the usage of loans to consolidate and manage debts are likely to be amongst the most frequently covered topics.
