Secured loans are growing in popularity
Recent research shows that secured loans are becoming a more popular way to manage our finances.

The financial demands of modern day life have changed in recent years and our outlook on credit, loans and debt has transformed. The reality is the majority of us face financial challenges over our lifetime. And more and more of us are taking out secured loans.

Financial Trends

Recent research has shown that credit card borrowing is on the decline. This could be to do with the fact that many people are becoming more clued up about the high interest rates some credit cards charge. More people are opting for secured loans and mortgages for their financial needs.

Latest figures

The British Bankers’ Association said net mortgage lending rose this August by £6.2 billion, and personal loans have grown by £0.2 billion. In direct contrast, unsecured lending fell by £0.2 billion this August and underlying credit card borrowing fell by £0.4 billion.

Reduce costs

It’s thought the reason behind the trend of secured loans and mortgages rather than over-borrowing on credit cards is that consumers are keen to find cheaper ways of financing their spending.

Internet boom

The way customers are purchasing secured loans is also changing. More and more people are turning to the ease and accessibility of the internet for their financial services.

A recent study found that 8.7 million customers have bought a product from a price comparison website, including 1.1.million personal loans.
Research shows that almost one in five adults have bought financial services products through price comparison websites over the past year, as consumers increasingly bypass the high street in search of the best deals there are to be had.

Saving time

You can save yourself time and money when looking for a personal loan by using a loan finder service. Now through internet comparison sites, a one-stop shop allows you to compare hundreds of loans in one go, with some of the best deals on the market.

Advice

More and more people are becoming concerned about their finances. A survey showed that around 12% of us approached our friends for advice on services, such as secured loans, although 49% would not ask a friend to loan them money.

Loansum are a specialist broker that searches the market to find a low rate secured loan that’s right for you. Call us on Freephone: 0800 848 8046 to find out how we can help you or email help@loansum.co.uk.

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