Secured loans 'should take priority' - Loans - News - Moneyfacts

News

Secured loans 'should take priority'

Secured loans 'should take priority'

Category: Loans

Updated: 25/06/2009
First Published: 21/11/2008

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Borrowers are being advised to prioritise debts in order to avoid the threat of losing their own home.

The Daily Telegraph notes that consumers should be fully aware of who money is owed to and how much interest is being charged.

And with the Council of Mortgage Lenders finding that repossessions rose by 12 per cent in the third quarter, the paper urges borrowers to make secured loans their main priority, in order to avoid losing their home.

"If you are liable to lose your home, your liberty or essential goods and services, then this is a priority debt," Lisa Colcough of Citizens Advice is quoted as saying.

The Telegraph also states that avoiding repossession is important because it damages credit ratings, making it difficult to obtain unsecured loans and credit cards in the future.

Minutes of the Bank of England's November monetary policy committee meeting revealed that a greater base rate cut than the 1.5 per cent agreed had been considered, suggesting secured loans rates may fall in the future.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Regulator to take closer look at high-cost credit

When used well, credit can be a viable way to help make ends meet and balance the books – but the problem comes when that credit is of the high-cost variety. The regulator has will be taking a closer look at the sector to see what else can be done.

The payday loan market is still broken

The payday loan market has been under fire a lot in recent years, and as a result, the financial regulator stepped in. But has it made a difference? Unfortunately, it looks as though there’s still a lot of work to be done.

Get a record low rate loan - if you qualify

Competition in the personal loans market is as hot as ever, so much so that one loan provider has slashed rates to the lowest on record – but only to those who fit the bill. The shopping bill, that is…
 
Close