Taking control of your finances

borrowers-infographic-v2

Freedom Finance recently investigated the types of loans customers were applying for over 2015 and 2016. After studying over £400 million worth of unsecured and secured loans, we found that nearly 50% of approved loans were being used to bring consumers’ debts together as borrowers take charge of their finances.  

So what are the benefits of debt consolidation and why is it becoming an increasingly popular option for borrowers?

Many view debt consolidation as one of the best and most practical ways to handle their monthly loan repayments which can often get confusing when dealing with various loans from multiple lenders. By consolidating debts it enables them to have one single repayment. As consumers become more financially savvy, it is really positive to see many of them take control of their budgeting which in turn can reduce overall repayments and improve their credit rating.  Read more about debt consolidation here. 

After debt consolidation, the most popular reasons for applying for a loan were making home improvements (24%), buying a car (17%), and paying for holidays and weddings (6%). 

When it comes to unsecured loans such as holidays and home improvements, it’s important to  be mindful that many of the top rates advertised for your chosen loan are only available with a high credit score, but in reality, there are very few ‘perfect borrowers’. 

Always watch out for the risks associated with shopping around online for loans, as these searches often create a hard footprint that can have a negative impact on your credit scores. Engaging with companies, such as Freedom Finance that use ‘soft search’ technology is a far better way to shop for loans safely, since they do not store this type of information. As a result, borrowers will be able to get the best rate possible for their particular situation, both now and in the future.

Jeff Poole, Managing Director of Freedom Consumer Finance

← back to posts