UK Secured Personal Loans
Loans aren't always the best way to clear credit card debt
In the UK secured personal loans generally offer the lowest interest rates, but that doesn't mean they're always the best solution – especially if you're clearing existing credit card debt. Many cards offer exceptionally low rates for balance transfers which in many cases will work out cheaper than loans.
In the UK secured personal loans are widely used to consolidate existing debts – particularly credit card debts. However, while it's a good idea to explore the options you should also check out some of the introductory offers from credit card companies; in some cases it's cheaper to transfer your debt to a new card than to pay it off with a loan.
UK secured personal loans do offer low interest rates, but many credit card companies are currently offering rates as low as 0% APR on balance transfers. Such rates are usually fixed for a limited period – usually a few months – but some firms will fix the rate until the transferred balance is paid off (although they'll charge normal rates for any other spending).
When it comes to a choice between UK secured personal loans and credit cards, the deciding factor is likely to be the amount of debt you want to clear. UK secured personal loans attract sky-high interest rates if you're only borrowing £1,000, but if you need to pay a lot of money over a long period of time they're likely to be a better bet than a credit card balance transfer.
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