Secured loans in the current financial market
15/04/2008Consumers looking to tackle their finances with a debt consolidation loan may find it increasingly difficult to lend from banks or building societies, according to one industry analyst.
It has been suggested by a spokesman for The Motley Fool, a group which offers advice on financial matters through its UK website, that following recent market instability the "financially challenged" may face more rejection from high street lenders.
David Kuo, head of personal finance at the site, said that the Bank of England's decision last week to cut the interest rate would do little to help those looking for a bad credit loan and that these people should seek an alternative method of improving their finances.
"Aside from what is going on in the mortgage market, people are finding it increasingly difficult to get hold of credit cards and it means that you don’t have any kind of flexible loan available to plan from one month to the next," he said.
This tentative lending could see more people consider the benefits of a secured loan, which in many cases offer a better rate of interest than credit card lending.
 © Adfero Ltd
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