| Summary: Majority of people in the UK do not | | | | borrowing money that can be extended upto |
| take financial planning seriously although | | | | £25,000 at a rate of interest that is very |
| the level of personal loans in the nation is | | | | much affordable. The level of personal loans |
| increasing rapidly. | | | | is increasing by the day but the awareness |
| | | | level regarding the financial planning is |
| It seems that people are more interested in | | | | surely lacking somewhere. One of the leading |
| maintaining their lifestyle paying scant | | | | money charities in the UK says that the total |
| regards to financial planning. A paradox | | | | personal debt at the end of December 2007 |
| emerges from the poll taken by the | | | | stood at £1,409 billion. This is despite |
| Association of British Insurers involving | | | | the fact that credit crunch has affected the |
| 2,000 people. It reveals that around 25 per | | | | availability of credit across the country and |
| cent of people were unaware how they would | | | | people are facing big deterrence in the form |
| make their ends meet if the main earner in | | | | of high borrowing costs. |
| their family died. Another 21 per cent said | | | | |
| they might face similar situation should they | | | | Many lenders like Northern Rock withdrew |
| suffer a long-term illness. The survey shows | | | | their range of unsecured personal loans from |
| that a huge number of Britons have no idea | | | | the market amid the credit crunch and in a |
| how they would cope financially in a crisis | | | | bid to avoid offering riskier loans at a time |
| triggered by different situations. | | | | when the market conditions were not |
| | | | conducive. Unsecured personal loans are |
| For thousands of people, cutting down on | | | | offered by the lenders without requiring any |
| expenses, selling or pledging their homes, | | | | security to be placed by the borrowers. These |
| using savings and relying on family and | | | | are one of the easiest means of borrowing |
| friends is the usual course of action in case | | | | money as you can get upto £25,000 without |
| of financial emergencies. However, there is | | | | any need to pledge your home. Borrowers know |
| always a risk involved in taking loan by | | | | that they are free to use unsecured loans for |
| pledging your home to the lender. Many people | | | | any purpose they wish. This makes them go |
| try to avoid this risk by taking recourse to | | | | crazy for these types of loans even though |
| security-free borrowing. | | | | they are required to pay a little higher rate |
| | | | of interest. As these loans are available |
| Unsecured loans are among the favourite | | | | online, it only adds to the popularity among |
| borrowing options for people in financial | | | | the masses. |
| trouble. These are security-free means of | | | | |