Secured Lending Falls – But It's Still There For Some

Secured loan lending is in the doldrums right now – but it is still alive and it is still an option for some people who need the help of a sensible, secured finance option.

New figures from the Finance & Leasing Association show consumer credit market remains under pressure – it says secured lending markets fell in the middle of 2009 by 84%, compared with Q2 2008.

And while, thankfully, risky unsecured fell too, store instalment credit continued to grow, with new business up by 5% in June and 1% in the second quarter of 2009. This is worrying – store cards can be even less competitive than credit cards and personal loans and can cause even more debt problems. The only sensible loan that homeowners with debt problems should ever consider is a secured loan. Using your home's equity, it means the rates are lower, the penalties are less severe and the debt is more manageable, with some professional guidance.

Geraldine Kilkelly, head of research and chief economist of the FLA says: "In the last six months we have seen new credit levels continue to fall."

Talk to your mortgage adviser if you are struggling with debts. There are still some secured loan options out there for a chosen few – sensible options that will help you get on top of debts and move out of debt.

SOURCE: FLA, 24/08/09

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