Many Brits fail to repay their loans. Some default because they over-indulge in debts and some default because of the high interest rates that they might be paying to the lenders. Anyhow, recent figures suggest that around 14,000 people lost their homes in the first six months of 2007, as the first-half of the year registers 30 per cent increase on the same time last year.
The statistics says a lot about the current trends in the UK financial market. But, when we compare the number of repossessions with the total number of borrowers we will find that these repossessions are not that alarming. If Brits take some precautions and don't over indulge in debts, they can safely play the game. Obviously, they need to be more finance savvy and need to inculcate financial discipline as well. They should avoid expensive forms of borrowing like credit cards, store cards, overdrafts, etc. Cheap loans UK will help them a lot in their difficult times.
There are some basic conditions that all borrowers need to satisfy. You must be a UK resident and above 18 years of age in order to get a loan. These conditions are common to all borrowers. Cheap loans start from as low as 6.5 per cent APR. The rate of interest is the biggest concern for any borrower. The lower the rate, the lesser will be the interest component that you will be required to pay. So, cheap loans mean that there is less chance of default taking place as you can easily manage to repay smaller instalments.
If you have a bad credit history, cheap loans may not be possible. Instead, the lenders charge more than the usual interest rates from the bad credit borrowers. So, it is important that you maintain your credit record and avoid higher interest rates.
