Loans News

Many financial experts predict that the easing of lockdown will see a spending boom among consumers looking to spend money they have saved over the last 12 months. While ideally, consumers will be using their savings to enjoy the new freedoms, others may be considering borrowing money instead.

When considering borrowing money, it is not advisable to borrow unnecessarily and borrowers must have the ability to keep up with repayments. But, while it should often be a last resort for consumers, if done sensibly, borrowing can be a useful tool for personal financial management.

For those who have to borrow, the best way to do so is to borrow without paying interest. The best way to borrow using interest-free credit is to have a repayment plan in mind before borrowing the money to ensure that it can be fully repaid before the interest-free period ends so that interest is never added to the money borrowed.

The Secured Loans Index has revealed a 31% increase in secured lending in March 2021 compared to the previous month. There were more than 2000 secured loans completed, at a total of £91.4 million during March 2021. That increased figure is now only 1.72% behind levels achieved in March 2019, a signal that the market is recovering from the effects of the Coronavirus pandemic.
There was a decrease in the number of borrowers taking loans over 85% - a reduction of 4.18% compared to last month.

Spring is now officially here and, especially after the financial impact of the past 12 months, this is the perfect time of year for consumers to take stock and give their personal finances a spring clean.

Spring cleaning personal finances is easy to do and could save money each month as consumers switch to lower repayment options and evaluate existing deals they are on. To help make it easier, we’ve highlighted the key areas to look at when taking stock of personal finances.

Today marks the start of Debt Awareness Week, which coincides with the one year anniversary of the first lockdown in England and Wales, the financial fallout of which has seen many consumers falling into debt.

In fact, StepChange, the debt advice charity behind Debt Awareness Week, has acknowledged the impact the pandemic has had on people’s finances and the fact that many are worried about the debts incurred over the last 12 months by encouraging consumers to use this week to take the first steps towards getting debt help and talking about their financial problems.

“This Debt Awareness Week, we’re focusing on breaking down the stigma that surrounds debt, opening up the conversation and encouraging people to take #TheFirstStep towards resolving their money worries,” explained Richard Lane, director of External Affairs at StepChange.

“With the week also marking a year since lockdown began in England and Wales, and 2.5 million people facing a financial crisis due to the impacts of Coronavirus, it’s more important than ever that households across the country know where to get help. You are not alone.”

Those struggling with debt should consider seeking help and advice from a free debt charity, such as StepChange, or from Citizens Advice.

For those who have incurred extra debts over the last year, but who are able to manage their debts, here we’ve put together some steps consumers can take to reduce and clear their debts.