Secured Bad Credit Loans Make Sense
by Gordon Goodfellow
Secured bad credit loans were seen with some contempt in years gone by. Now they make complete sense, and we should be glad. Official UK figures tell us why!According to CreditAction.org.uk 'At the end of December 2005 the total UK personal debt was £1,158bn. Total secured lending on homes in December 2005 was £965.2bn. This has increased 10.4 in the last year.' This is when the average United Kingdom consumer debt is £7,786, and that is excluding mortgage debt.Average consumer borrowing via credit cards, auto and retail finance deals has multiplied 5 times in 5 years. Yet the average property value in the UK in Late 2005 was £186,431 (source: Office of DPM).The statistics speak for themselves. The considerably higher interest payable on credit cards, auto and shopping finance (store cards and the like) take a considerable chunk from the typical person's monthly earnings. The only sensible way out of this is fairly obvious. Consumers need to convert the high interest credit into lower interest debt by using their property by way of security. Even if people's credit worthiness is fairly low it makes much more sense to pay off the same amount of money at a lower interest rate by means of a secured bad credit loan.Now new lenders are springing up which take into account all circumstances. This latest market for secured bad credit loans has opened up in the last few years, and it has grown outside of the mainstay of the High Street financial institutions. As long as consumers have property then they may borrow as much cash as they like to pay back existing borrowing. Nor do hard working people have to pay the outrageous rates of interest that used to be the case with people whose credit rating was not good.Would it not make sense to pay £60 a month in paying off that debt than £150 every month servicing exactly the same debt? Secured bad credit loans offer that chance.Improvements in financial risk management assessment mean that providers are readily disposed to take into account secured bad credit loans where these were untenable in the past. The self-employed, in particular, are not treated as they have been, particularly with the recent attitude towards self-certification. Three years of audited books are no longer automatically required from those people who want to work for themselves. People with County Court Judgements, Individual Voluntary Arrangements, people who have defaulted on past or current debt agreements or even discharged bankrupts are now usually considered in today's evolving world of finance. Increasingly people are taking bigger financial chances, especially the ones in commerce and the entrepreneurial minded. The secured bad credit loans marketplace is evolving to take account of that because it needs to. Of course, consumers should not consider secured loans if they are not absolutely certain they can fulfil the repayments. Those people should look at unsecured loans (which are more expensive).But, as CreditAction.org.uk states, the average price of a home in the UK is '£186,431 (£195,319 in England). British annual house price inflation went up by 2.5 percent. Annual house price inflation in London was 2.2 .' Putting all that money to positive use by means of a secured credit loan is an option most borrowers would think about, whatever their credit status.
About the Author
Gordon Goodfellow is an Internet marketer, and market and social researcher. His websites dealing with secured bad credit loans take into account all possibilities that a potential borrower might present. For what this could do for you go to Secured Bad Credit Loans . Visit their website at: http://www.secured-bad-credit-loans.co.uk
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