Secured loans allow consumers to reduce their 'existing outgoings by as much as possible'
14th July 2008
As some lenders tighten their belts to help them cope with the credit crunch, an independent financial advice site has reported that secured loans are no longer a viable option for a number of banks and building societies.
The site says that for those wanting to reduce their "existing outgoings by as much as possible", a secured loan is the obvious option.
Michelle Slade, analyst at Moneyfacts.co.uk, commented: "As the current economic downturn continues, the demand for secured loans by second charge remains. Secured loans offer consumers the option to consolidate their debts over longer terms of up to 25 years."
Loans are on the increase amongst credit-crunched individuals and recent figures released from Independent financial advisor, Unbiased.co.uk has shown that consumer borrowing is currently £13 billion higher than the same period in 2007.
At the same time as borrowing increasing, savings levels are coming down which were down by £11 billion in the first quarter of 2008.