You might have experienced this. You have to big purchase during festive seasons, but as you do not have cash you end up paying with credit card. However, this money attracts high interests.What is more that if you default the company might reduce your limit. Due to this according to magicloans borrowers are now preferring secured loans instead of plastic money as they are being provided at attractive rates. According to MoneyExpert.com, demand for the products on its website increased by 85 per cent in the quarter ending January 2008 when compared with the preceding period. The site also gives the data that a 17 per cent jump in the average UK credit card balance occurred during January 2008, reaching £2,168.
This is true as unsecured loans are as called "unsecured" for the credit card company. The credit card companies are not able to recover the dues from many borrowers. Hence,they apply high interest rate on money borrowed as they have to recover the lost money from others who pay.The Consumer Credit Counselling Service has this week observed that people with a number of credit cards may find financial management a challenge. However,Secured Loan is becoming an increasingly attractive option for a average borrower unable to get a good deal on plastic.Here, the lenders as well as borrowers are at peace of mind.