Secured loans may be one of the better choices for borrowers
14/11/2008Homeowners who need to borrow money may find a secured loan is one of the better options available, if comments from one financial group are anything to go by.
Credit Action has expressed concern that the current economic climate in the UK could see some poorer people sliding further into debt.
Francis Walker, spokesperson for the group, said: "The poorer you are, the harder it is to get credit which means that there is a growth in different types of very high interest credit."
She explained, with banks less willing to lend than they have been, some people were turning to pay day loans, logbook borrowing and pawn brokers.
Ms Walker stated, although certain individuals may not have any other choice, it was best - if possible - to avoid these high interest options.
For anyone who has bought their own home, secured loans may well be a better alternative.
Interest rates for this type of borrowing tend to be lower as a person's house is used as security.
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