Member Article

Clever Lending - secured loans for debt consolidation popular

Master broker Clever Lending are seeing 61% of their secured loan cases being used for debt consolidation so far this year.

For clients reorganising their finances from more expensive forms of borrowing to a secured loan, Clever Lending are experiencing much higher enquiries for this purpose than for other key uses such as home improvements.

Brokers and lenders are becoming much more aware of the need for secured loan products to help people consolidate their finances and the number of products now available to customers is at an all-time high. Lenders are responding to the demand with not only more products but more choices for consumers such as fixed rates, ability to make overpayments and clear, transparent fee structures.

There are many advantages of a secured loan that are attracting the rise in products and their uses for brokers and their clients. Rates are generally lower than credit and store cards, and the amounts that can be borrowed are typically larger than unsecured loans. They are quick to organise and can be taken out over a longer period than an unsecured loan. It also means customers can consolidate their unsecured debt with a secured loan into one monthly payment rather than juggling several unsecured payments each month.

Sonny Gosai, Sales & Operations Manager at Clever Lending said: “The amount of secured loans we arrange for brokers and their clients is being reflected in the number of products available. Lenders have shown real confidence in this sector and are providing products to meet almost every situation. There really is a loan out there for everyone who needs to refinance their existing debt.

“Brokers too are responding well and we work hard to educate and communicate the benefits of secured loans for a wide variety of customer types.

“For many people it’s a clever solution for the longer term rather than recycling debt to other high interest cards or loans. Even if there’s a low APR credit card offer to transfer to, this may only be a short term fix and not suitable to restore a client’s credit profile over the longer term. For these reasons secured loans can be the better option to help repair a customer’s credit file and get the client back on their financial feet.”

This was posted in Bdaily's Members' News section by Ron Bell .