As home owners struggle to keep up, many are turning to cheap unsecured loans in an effort to make ends meet. Most are in a situation where they have already borrowed against the equity in their homes, or they simply owe more than the homes are worth, which means that for many, the only available option is a cheap unsecured loan. However, banks are not offering many options for these customers, and many have tightened up restrictions on cheap unsecured loans dramatically. This has not deterred consumers from trying to find numerous ways to keep making their house payments and stay afloat.“Many people have already tapped their home equity and they’re now struggling with credit card debt,” explains Farah Huq, senior research analyst at Mintel. “Personal loans and lines of credit are another way for them to get money for daily expenses.”“Unsecured loans and lines of credit have become quite valuable to lenders,” comments Huq. “Rather than send out mortgage and home equity offers to consumers who can’t use them, companies are advertising these products to drive business. They’re responding to issues in the marketplace and giving people what they really want and need.”
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