Thursday, July 13, 2006
Category:
Secured Loans
There has been an explosion in the number of secured loans providers, according to one industry professional.
The comments come from moneysupermarket.com spokesman Stuart Glendinning following yesterday's figures on the state of UK debt from the Consumer Credit Counselling Service (CCCS).
Mr Glendinning said it was of little surprise that debt levels had increased and that an increasing number of people were getting into debt.
He said: "One of the reasons why the secured loans providers have seen an explosion in lending in recent years is because so many people are consolidating the unsecured debts they have accumulated.
"For homeowners, this [taking out a secured loan] can be a sensible course of action, but only if they don't put themselves into a debt cycle."
A well-managed secured loan package from a reputable provider can be an important step for many consumers in managing their debt levels.
Mr Glendinning added: "This report is a fresh reminder that debt crisis is becoming more and more of an issue."
