Secured Loans One Option To Help Rein In Debt

Secured Loans One Option To Help Rein In Debt

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Video transcript

The average level of unsecured debt experienced by each household has gone past the £6,000 mark.

Figures from The Money Charity indicate that the mean amount owed on things like credit cards, store cards and personal loans went up to £6,087 in January, having been revised to £5,990 the month before.

In total, outstanding personal debt was up at £1.439 trillion by the end of January this year, with mortgages making up £1.278 trillion of that. Unsecured loans still to be paid totalled £160.8 billion at that point, up £4 billion on the same point in 2013.

Michelle Highman from The Money Charity suggests that rising prices could be to blame, noting that "consumers may be finding that once they have paid their priority debts and covered basic living costs they don`t have the additional funds to pay their unsecured loans; and as a result continue to incur high interest costs".

The stats show that total interest payment on personal debt over the year to January this year sat at £59.3 billion. Dividing this between the UK`s households, this means that each one would need to make £2,245 in interest repayments alone, before servicing the original debt.

Finding a cheaper unsecured or secured loan could help cut the unsecured portion of this interest payment and leave you with a single credit repayment to make each month. Please ensure you are aware of the total amount you pay back as even if the payments are less the total interest you pay over the term could be notably more and if you require a secured loan to raise the money, then you must think carefully before securing debts against your home.

First Choice is tied to a selected number of secured lenders, if you are interested in our secured loan options for you then call us on our mobile friendly 0333 003 1505 or from a landline on 0800 298 3000, alternatively visit firstchoicefinance.co.uk. 

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Homeowner Secured Loans
9.8% APRC. Representative example: Borrow £50,000 over 180 months. 60 months at 8.1%, £497.83 pcm fixed at 60% LTV. Then 120 months at 10.1%, £539.89 pcm variable. Total payable £94,656.60. Total cost of credit £44,656.60 (including: £795 lender fee, £985 broker fee & £42,876.60 interest). First Choice are tied to certain loan providers.

Mortgages & Remortgages
8.4% APRC.
Representative Example: Borrow £120,000 over 25 years at 5.99%, £778.86 pcm fixed for 3 years at 60% LTV. Then at 8.75%, £974.86 pcm, variable for 22 years. Total payable £286,416. Total cost of credit £166,416 (including: £985 broker fee, £999 lender fee & £164,432 interest)


Unsecured Personal Loans
REPRESENTATIVE 49.9% APR (VARIABLE)
First Choice are tied to certain unsecured lenders.


THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Security is required on immovable property.



Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk

Established In 1988. Company Registration Number 2316399. Authorised & Regulated By The Financial Conduct Authority (FCA). Firm Reference Number 302981. Mortgages & Homeowner Secured Loans Are Secured On Your Home. We Advice Upon & Arrange Mortgages & Loans. We Are Not A Lender.

First Choice Finance is a trading style of First Choice Funding Limited of 54, Wybersley Road, High Lane, Stockport, SK6 8HB. Copyright protected.

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