Loans in UK: The Rise In Bad Debts Has Spawned A New Market

2007-03-08 10:33:40

( Automobiles )



Consumer loans in UK have significantly grown as loan providers increasingly allocate a sizable portion of their portfolio to the consumer market. A lot of players have also entered the industry such that when you want to get loans in UK, you just don’t go to the banks. You can shop for loans in UK even in supermarkets. Or you can do it online!

With the rapid rise in outstanding volume of consumer loans in UK, the volume of bad debts has correspondingly increased. Even in such a situation, loan providers have found a niche market. The rise in bad debts has given them a new business opportunity – loans for people with bad credit payment history.

When you’re in a financial mess with a lot of creditors running after you, you can’t just close your eyes and wish they would all go away. You have to take a proactive stance! Aware of this reality, loan providers have come up with financial products that can help you put your house in order.

While it is scary to put up your homes as collaterals, there are times that you just have to bite the bullet. Take out a secured loan because annual percentage rate (APR) is comparatively lower and your loan term is longer. As a result, your monthly payments would be a lot more manageable.

Consolidate loans and all credit card bills into your secured loan. With this, you will only have one monthly payment to make, instead of the many you used to worry about. This will significantly help you manage your finances and hopefully get back on track.

Part of being proactive with your finances is to be always abreast with market developments and to be always on the lookout for better deals. Interest rates are constantly changing with market conditions. They also differ from one loan provider to another. So if you have gotten a secured loan with fixed APR, check whether yours are in line with that of the market. Or compare your APR with that being given by a competitor.

If, after a thorough assessment, you have found out that you are at the losing end of the deal, consider refinancing loans with another loan provider. When you refinance loans, however, make sure that you do not only compare the APRs. You have also to assess the impact of the cost of the application fee and the termination fee.

So be proactive! It is a borrower’s market out there and you might just have a better deal!


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