Decrease in unsecured uk consumer debt

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Decrease in unsecured uk consumer debt

9th May 2010

Recent figures from the Bank of England show that unsecured consumer debt dropped in February for the first time since 1993. This reflects the increased problems that many people are having in accessing credit.

The difficulties for many people in obtaining credit are now having an impact on the amount of unsecured consumer debt (personal loans and credit cards), as it has dropped for the first time in 16 years, according to the Bank of England. Although this can be a good thing for families whose debt has spiralled out of control, if everyone stopped borrowing UK spending would decrease dramatically, and therefore accelerate the downturn in the Economy. This is exemplified by figures from the Office for National Statistics, which show that retail sales fell by 1.9% during the month of February alone.

For people who can still afford to borrow, but have been turned down for credit, it is reassuring to know that there are still loans available. In particular, people wanting unsecured credit, such as tenants, may find it difficult to obtain loans through traditional channels.

So, what types of loans are available for tenants?

Personal loans are usually unsecured, meaning that you do not have to use your home or other possessions as collateral. They are therefore ideal for people who are not home owners. Although interest rates for personal loans are higher than for secured loans, they are still lower than for credit cards. Repayments are usually for a fixed period and at a set rate of interest.

Loan Finder specialise in loans for people with an adverse credit history and offer unsecured tenant loans from 500 to 20,000, for any purpose, through their various loan providers. They will consider applicants who have been refused a loan elsewhere. Another unsecured loan broker is Yes Loans Ltd. They can source loans from 250 to 25,000, and don't charge a fee for setting up the loan. You can apply online via their website, and they promise a decision in principal within 15 minutes. Another broker is Easy Money Lender, who offer unsecured loans as well as other forms of credit.

The range of loans available for tenants have different terms, borrowing limits and rates of interest, so it is important to shop around in order to find the loan that is most suitable for you. Also bear in mind that if you apply for too many loans at once, it can affect your credit rating.

Posted in Debt management

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