Different kinds of debt

According to recent data from the Finance and Leasing Association (FLA), borrowing (from its members) through unsecured loans was down 37% in March 2009, compared with the previous March, while secured loans (borrowing against equity in property) were down 76%.

Despite this, one form of borrowing has `defied the downturn`, and this is in-store credit - which rose by 24% from March 2008 to March 2009.

A spokesperson for debt management company Gregory Pennington said: "With the instability of the housing market, secured credit has become, for many, harder to obtain. Some people are borrowing in different ways - although secured loans and in-store credit are two very different forms of credit.

"It is important to consider your options carefully before taking on any debt. Anyone looking for more information on managing their debts should contact a professional debt adviser."

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Gregory Pennington offer debt management plans as well as a range of other debt solutions. If you are worried about debt, contact one of our expert debt advisers now.