If you've been researching secured loans with the expectation of
applying for one yourself, you've probably read all sorts of conflicting
advice on how to go about securing a secured loan, why secured loans
are bad, why secured loans are the best thing since pub fries and how to
research secured loans to be sure that you get the best possible
interest rate. By this time, you're likely to be either thoroughly
confused or thoroughly skeptical. Here's some basic, simple advice based
on things we've seen and read on the internet about secured loans.
Secured loans are not for everyone.
Despite what the adverts may try to sell you, a secured loan is not always your best solution. If you are in seriously dire financial straits and are looking to secured loans as a short-term fix to get you out of your current situation, you might do better to look to debt counseling or another solution.
Despite what the adverts may try to sell you, a secured loan is not always your best solution. If you are in seriously dire financial straits and are looking to secured loans as a short-term fix to get you out of your current situation, you might do better to look to debt counseling or another solution.
Secured loans are not the devil's tool.
On the other hand, secured loans are not evil incarnate. There are excellent reasons for taking out a secured loan, and as long as you know that you can make the repayments on your loan, there is no reason to be afraid of indebting yourself. Just take common sense precautions like knowing the company you borrow from and insuring your ability to pay off the loan in case of unexpected misfortune.
On the other hand, secured loans are not evil incarnate. There are excellent reasons for taking out a secured loan, and as long as you know that you can make the repayments on your loan, there is no reason to be afraid of indebting yourself. Just take common sense precautions like knowing the company you borrow from and insuring your ability to pay off the loan in case of unexpected misfortune.
Do your research to find the best secured loans before you make a choice.
There are dozens of companies that offer secured loans in the UK. Some offer secured loans with very low interest rates to those with excellent credit. Others specifically make secured loans available to those who may have had trouble with finances in the past. If you take the time to research both the company with which you are doing business and the type of loan that you are seeking, you can be assured of getting the secured loan that you need at a price that you can afford.
There are dozens of companies that offer secured loans in the UK. Some offer secured loans with very low interest rates to those with excellent credit. Others specifically make secured loans available to those who may have had trouble with finances in the past. If you take the time to research both the company with which you are doing business and the type of loan that you are seeking, you can be assured of getting the secured loan that you need at a price that you can afford.
Figure out how much you can afford to pay back each month and stick to it.
Before you start applying for secured loans, add up all your expenses and income. Be realistic - shaving pence off your figures for expenses or padding your possible income will only give you false results. Subtract your expenses from your income. Shave another 10% off that figure. That will give you a pretty good idea how much you can afford to pay back each month. Don't accept any secured loans that would require a higher monthly payment.
Before you start applying for secured loans, add up all your expenses and income. Be realistic - shaving pence off your figures for expenses or padding your possible income will only give you false results. Subtract your expenses from your income. Shave another 10% off that figure. That will give you a pretty good idea how much you can afford to pay back each month. Don't accept any secured loans that would require a higher monthly payment.
Let others do the research for you.
A trusted comparison site can take a lot of the legwork out of searching for good secured loans. We maintain a database of over 200 secured loans and loan products. When you fill out a simple online application, we'll search our database of trusted finance firms to find you the best deals for your circumstances.
A trusted comparison site can take a lot of the legwork out of searching for good secured loans. We maintain a database of over 200 secured loans and loan products. When you fill out a simple online application, we'll search our database of trusted finance firms to find you the best deals for your circumstances.
Rachael Gallant has worked for the UK financial services
market for a number of years specialising in secured loan applications
for UK home owners. She understands how time consuming it can be trying
to interpret the associated jargon which is why she writes clear, easy
to understand guides exclusively for "Secured Loans Centre".
