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