Secured Loans 'Are An Option For Those In Debt'

People in debt and looking for an option to alleviate such arrears could turn to a secured loan, according to a financial site.

The online financial advice company has claimed that a number of alternative debt solutions currently on the market are offering Britons ways in which to curtail what they owe. A spokesperson for the financial solutions body stated that cost reductions are making it more difficult for companies to offer loans.

However, the expert stated that falling prices are providing enough equity to make a secured deal appeal to people.

The source said: "Talking to the right company can make all the difference between being offered credit at a competitive rate and being unable to avail a secured loan at all."

If you find you are having trouble paying your creditors there are quite a few things you can be doing to help yourself.

Top tips when in debt:

•    Assess your situation - The first signs of trouble can be subtle - Taking a small overdraft to cover expenses, paying one credit card with another, paying your household bills late.
•    Raise your income - by working some overtime, for example, or finding out if you’re entitled to any more benefits.
•    Reduce your expenditure – by giving up luxuries for a while, for instance, or by drawing up a realistic budget and sticking to it.
•    Don’t wait for your creditors to contact you. Contact them first, and tell them you’re having trouble meeting your commitments.
•    Explain why you’re in financial trouble, what you’re doing about it and if your financial situation is likely to get better or worse. Be prepared to provide evidence.
•    Know exactly how much you can afford. If you can’t make the minimum payment, what are you going to suggest?
•    Make sure your budget is realistic. It’s better to make smaller payments reliably than promise too much and miss payments.
•    Phone your creditors and write to them. It is vital you confirm everything discussed in writing and ask them to do the same. Keep copies of all correspondence.

If you would like to know more about secured loans why not ask AnswerBank Business and Finance.