Clever Lending has revealed that 61% of its secured loan cases being used for debt consolidation so far this year.

For clients reorganising their finances from more expensive forms of borrowing to a secured loan, the master broker is experiencing much higher enquiries for this purpose than for other key uses such as home improvements.

Sonny Gosai (pictured), sales and operations manager at Clever Lending, said: “The amount of secured loans we arrange for brokers and their clients is being reflected in the number of products available. Lenders have shown real confidence in this sector and are providing products to meet almost every situation. There really is a loan out there for everyone who needs to refinance their existing debt.

“Brokers too are responding well and we work hard to educate and communicate the benefits of secured loans for a wide variety of customer types.

“For many people it’s a clever solution for the longer term rather than recycling debt to other high interest cards or loans. Even if there’s a low APR credit card offer to transfer to, this may only be a short term fix and not suitable to restore a client’s credit profile over the longer term.

“For these reasons secured loans can be the better option to help repair a customer’s credit file and get the client back on their financial feet.”