Secured loans could help clear debt faster
15/10/2008As new research reveals the credit crunch has led to more people taking action to reduce their debt, those who want to follow suit may find a secured loan can help.
The study by Lloyds TSB Consumer Banking has shown 55 per cent of adults in the UK have made the effort to cut the amount they owe in the face of the current economic downturn.
Some 32 per cent have increased their monthly repayments and 19 per cent have started focussing on paying off debts with higher interest rates.
People who owe money on store cards and credit cards may find a homeowner loan can help them get back on track more quickly.
A secured loan will generally offer lower rates of interest as the borrower's house is used as security so the risk to the lender is reduced.
Commenting on the findings of the research, Ian Larkin from Lloyds TSB said as well as paying off debt it is important people start putting money aside for a rainy day.
He stated: "Economic conditions are set to become more challenging and a healthy savings balance could prove to be a financial lifeline for some families during the economic storm."
 © Adfero Ltd
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