Consumers Hit by Recession Use Secured Loans to Improve Their Credit


Lancashire, UK -- (SBWIRE) -- 04/30/2013 -- According to the Secured Loan Index, lending is at an all-time high following 17 consecutive months of growth. While many in the United Kingdom rely on secured loans for funding business ventures and personal needs, they are increasingly being used in debt management plans as well.

"We’ve seen a definite increase in consumers seeking advice on handling debt; during the economic downturn, hundreds of thousands of workers were made redundant and relied on government assistance or their savings for living expenses," explained Carl Baker, Director of Baker Financial.

The United Kingdom’s downward spiral into a recession came so rapidly that the vast majority of people didn’t have the time to hash out a plan to manage their debt, claims Baker. Instead, they were forced to make a choice – feed their family or pay their lenders.

"In a lot of cases, our clients didn’t do anything inherently wrong; they weren’t living beyond their means and didn’t take on more than they could chew – they were made redundant, took a pay-cut or suffered from an injury," said Baker, "and now their credit is shot. Secured loans allow them to pay off their debts, which are often accruing criminally-high amounts of interest and loads of late fees, and let them wrap all of these payments into a single loan with much lower interest rates instead."

Secured loans, such as those offered by Baker Financial offer more than just a low interest rate; borrowers are able to start repairing their credit immediately since they are effectively paying off past due payments and satisfying their defaulted loans. For borrowers that fell behind due to a shoddy economy, it’s one of the best ways to get back on track.

"I would advise anyone who is struggling financially to look into secured loan to consolidate their current debts; in addition to the obvious benefits, each plan is developed in conjunction with a licensed financial advisor, who can analyse the specific situation of each borrower and discover ways to ease their financial strain and improve their circumstances," Baker concluded.

Media Contact Information:
Carl Baker, Principal
Baker Financial
0845 094 2331