Secured loans and debt consolidation figures rise
19/03/2008More people are opting to take control of their debt with a secured loan, according to a new survey.
The study, put together by financial advice website MoneyExpert.com, revealed that there had been a rise of 85 per cent in the number of people borrowing money against the value of their home in the last quarter of 2007 compared to the previous quarter.
It was estimated that around 6.5 million people in the UK had opted to use the loans to consolidate their outgoings and merge their debt repayments into one easy monthly amount.
Also noted was the number of young people making use of debt consolidation loans - around 23 per cent of 25 to 34-year-olds - which MoneyExpert.com chief executive Sean Gardner said was a good sign.
"It is encouraging that so many people have taken action as you can make significant savings by moving all your debts to one place," he said.
Recent figures from Credit Action revealed that the total figure for UK personal debt has now reached around £1.41 trillion.
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