Unsecured Loan - loans for everbody

I am seeing unsecured loans being something of a fashion now. Loans are "free money" to many. The repayment is a thing of the future, a bridge to be crossed when reached. Therein lies the danger. Humans err; it’s the one thing consistent with them. I know. I have been there too. It’s just the lure, you know, of fast money.

All said and done, if you are sure of your financial standing, unsecured loans remain the best avenue of availing money. And the "if" remains a big "IF". I overestimated my capacity to repay back the amount, semi-defaulted, and the unfortunate lender had to settle for late payments. Of course, if you think that I let away scot-free, think again. There is the little matter of being blacklisted, after which it becomes a lot easier to swim unclothed in the River Thames on a cold January morning than get another loan. In other words, you become a black credit borrower.

Not that these kinds (my kind) of borrowers have no way to wipe the slate clean. For my part – and discretion could not have come any sooner – I got fortunate and more sincere with two more loans. Getting them was not easy, and sacrifices were made. Bad credit borrowers have to pay an elevated rate of interest. This anomaly is engendered by the lenders’ risk in giving loans to this species of loan takers. Still, this remains the only real option, credit cards excluded, to get back in the good books of the lenders.

I paid off the two loans in earnest; the instalments were met with unswerving punctuality, the demand of the lenders fulfilled with silence and loyalty. Now, my credit record looks a prettier picture. Redemption has been somewhat achieved.

I have seen that in the UK, the popularity of secured loans is at an all-time high. The principal reason for this could be the amount one can borrow with collateral in place. A person can so easily lose the collateral in case of a default. Still, my compatriots seem to be taking more chance with this. Good luck to them.

For me, however, unsecured loans remain the only option. This is more a matter of choice than compulsion. I firmly believe in short-term loans. Keeping personal savings for other purposes are perfectly viable. However, wouldn’t it be nice if you could use your hard-earned, sweat-soaked money for meeting some of your needs? And losing your home after twenty-five years? It still is a big gamble to take. I realise twenty-five years is a long time, and secured loans do offer flexible payments. But it is still for the financially sound, discreet-filled borrower. And you cannot convince me that there is a surfeit of them out there. Just look at the number of repossessions that are taking place in the UK today.