Secured bad credit loans used to be looked on with some disdain in years gone by. Now they make complete sense, and people should be glad. Official UK figures tell us why!

According to CreditAction.org.uk 'At the end of December 2005 the total UK personal debt was £1,158bn. Total secured lending on homes in December 2005 was £965.2bn. This has increased 10.4% in the last 12 months.' This is when the average United Kingdom domestic debt is £7,786, and that is not taking into account mortgages.

Average consumer borrowing through credit cards, vehicle and shopping finance deals has multiplied five times in 5 years. Yet the average property value in britain in Late 2005 was £186,431 (source: Office of Deputy PM).

The numbers speak for themselves. The much higher interest payable on credit cards, motor and retail credit (store cards and the like) are taking a large chunk out of the average person's monthly budget. The single reasonable way forward is quite clear. Consumers need to convert the high interest debt into low interest debt by making use of their property as security. Even if people's credit standing is fairly poor it makes even more sense to pay off the same amount of money at a lower interest rate by means of a secured bad credit loan.

Now new lending sources are becoming available which take into account all circumstances. This new market for secured bad credit loans has opened up in the last few years, and it has developed outside of the traditional ground of the High Street banks. As long as consumers have property then they may raise as much money as they like to pay back existing borrowing. Nor do people have to pay the outrageous interest rates that used to be the case with people whose credit status was not perfect.

Would it not make sense to pay £60 every month in servicing that debt than £150 a month paying off exactly the same amount? Secured bad credit loans offer that opportunity.

Improvements in financial risk management assessment mean that lending sources are fairly disposed to offer secured bad credit loans where they were not acceptable in the past. The self-employed, especially, are not treated as they have been, especially with the fresh approach towards self-certification. Three years of audited accounts are no longer automatically required from people who choose to work for themselves. People with CCJs, Individual Voluntary Arrangements, those who have reneged on past or existing financial agreements or even discharged bankrupts are now regularly considered in today's shifting world of credit.

Increasingly people are taking more financial chances, especially the ones in business and the entrepreneurial minded. The secured bad credit loans marketplace is expanding to take account of that because it must. Of course, consumers should not consider secured loans where they are not entirely certain they can meet the repayments. Those people should take a look at unsecured financial products (which are more expensive).

But, as CreditAction.org.uk states, the typical price of a home in the United Kingdom is '£186,431 (£195,319 in England). UK annual house price inflation went up by 2.5 percent. Annual house price inflation in London was 2.2 per cent.' Putting all that capital to good use by taking out a secured credit loan is an option most people would consider, whatever their credit status.

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