Secured Loans Repayments Suffer as Interest Rates Continue to Rise

As interest rates continue to rise the inevitable seems to be happening. UK consumers who have borrowed unwisely without planning for change in their financial circumstances at starting to find it difficult to meet their monthly secured loan repayments. Recent research has shown that more that 7,700 loan repayments are being missed every day and the most recent round of interest rate rises start to bite. This means that in the last 6 months a staggering 1.4 million repayments have been missed and the pressure is set to continue as economists predict another .5% increase by the end of 2007 taking the base rate from 5.5% to 6%.

Unfortunately it seems that many consumers are adopting the Ostrich approach and choosing to bury their heads in the sand. Being faced with a stark choice of trying to make mortgage payments or loan repayments is not pleasant but ignoring the problem won't help and consumers should contact their lenders to discuss repayment options rather than face potentially damaging and costly court appearances.

With some excellent rates available for secured loans, currently around 6.5%, lenders are usually willing to help. After all, it's in their interest to ensure you can keep making the payments so they can recover the value of the loan they have made. Your house maybe secured against the loan but this is a last resort for lenders and it's far more cost effective for them to recover the secured loans through you rather than incur additional costs via property repossession.