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Secured loans 'should take priority'

Secured loans 'should take priority'

Category: Loans

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

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 It is now over 6 months old so the content may be out of date.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.

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