Rise in loan enquiries expected in 2007

Experts have predicted that there will continue to be a growing number of loan related enquiries in 2007, as UK consumers struggle with high levels of consumer debt, which has been added to by the recent Christmas and New Year spending. One loan and mortgage company confirmed that it had received a rising number of loan related enquiries in December 2006, stating that part of the reason for this rise was likely to be the determination of UK consumers to keep a tighter reign on finances and try to consolidate smaller, high interest loans into one lower interest financial package.

According to Elephant Loans and Mortgages, the number of enquiries relating to loans is likely to continue to grow as UK consumers try and sort out their finances following the busy and expensive Christmas and New Year period. Many consumers have now received all of their credit and store card bills following the January sales too, and this may also add to the number of enquiries that are made with regards to consolidation loans, where consumers try and find a more manageable and affordable solution to paying off expensive store and credit card debts.

According to the Chief Executive of Elephant Loans and Mortgages ‘December's level of activity reflects the growing debt problems in the UK. Following the busy Christmas period, we expect to see significantly increased enquiries in 2007, as consumers seek to manage their debt more effectively.’

Consumers are looking into a variety of ways through which to make repayment of their debts easier, and one of the popular solutions at the moment seems to be the secured loan, which is ideal for homeowners looking to make the most of rising equity in their properties, unlocking the equity in order to pay off smaller, high interest debts.