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Debt Consolidation is the Top Reason for Loans

Debt consolidation accounts for 44% of secured loans

2nd February 2004



New research by finance company Budget Insurance shows that 44% of new secured loans taken out in 2003 were for restructuring debt - in other words, debt consolidation. This compared to 22% for car loans and 21% for home improvement.

The figures reflect growing consumer awareness of the difference in interest rates between secured and unsecured debt, according to Equifax director Neil Munroe.

However, Budget Insurance's Simon Jackson warned that prospective consolidators should check whether their unsecured debt would attract early repayment penalties before deciding to consolidate.

Read More: The Scotsman





More on Debt Consolidation: About Debt Consolidation (Article, 24/08/2005)£5bn Debt Consolidation Prediction (News, 30/01/2006)OFT Investigation into Debt Consolidation Loans (News, 12/03/2004)


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