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Evidence is emerging that one formerly taboo form of “secured loan” is becoming increasingly popular in the UK.

Pawning, which is a type of secured loan where money is borrowed against the value of a personal possession, is actually becoming more common just at a time when consumer reliance on credit cards is beginning to drop off.

The National Pawnbrokers Association (NPA) report that the number of new pawnshops opening in the UK is growing at a rate of 10% a year, with 800 outlets in total now operating in the UK.

There is also evidence that this form of secured loan is now a realistic choice for a much broader demographic than it used to be, with a spokesperson from financial education charity Credit Action commenting that it is now “a popular option for the middle classes”.

The spokesperson adds, “Pawning can be a good option if you're after a short-term emergency fund.”

He warns, however, “You're merely shifting the problem around and not tackling it."