Unsecured loans are the most popular way of meeting all kind of financial requirements and Britons avail them for a plethora of reasons. Market trends reveal that unsecured loans are most preferred by the borrowers. And the current season is for home improvements. Most borrowers avail loans in May, and June to get their home renovated.
Unsecured loan trends:
Studies conducted by Halifax bank have led to some amazing results in relation to personal loans. Some of them are cited below.
Debt consolidation is one of the major drives for procuring unsecured loans.
Women are more inclined towards availing unsecured loans for debt consolidation than men.
May is the most popular month for taking an unsecured holiday loan.
September and October record the maximum number of unsecured loans.
Britons spend £15.4 billion a year for maintaining and repairing homes through loans.
Unsecured Loans repayment losses in 2007
The number of Britons availing unsecured loans is increasing and so, is the number of defaults in payments. A leading high street lender has predicted that arrears on unsecured loans will increase in the year 2007 and so will the defaults. At the end of 2006, 5.6% of Alliance and Leicester unsecured loans were in arrears. The Times newspaper recently quoted Antony Broadbent from wealth management firm, Sanford Bernstein who said that the British lending sector is currently at the worst point of its credit cycle, with unsecured loan losses expected to peak soon. These facts can be taken as an indicator of the disposable income and affordability of loan takers in UK.
So, before availing hefty amounts as unsecured loans, one should be sure enough of paying it back. Otherwise, it may adversely affect your credit score and lead to severe conditions like defaults, bankruptcy and CCJs. This may create problems in availing unsecured loans further.
