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Despite the credit crunch, consumers are still splashing out to make sure that this Christmas is one to remember for all the right reasons.

Such is the assertion of HSBC, which found that the average person will spend £479 this holiday season, an amount that could swiftly be dealt with by a loan.

Indeed, research reveals that people aged between 44 and 55 are going to be the biggest spenders, forking out an average of £579.

Commenting on the findings, Debbie Thomas, head of savings at the bank, says: "Everyone knows that Christmas is an expensive time but by tucking away the cash, albeit sometimes small amounts, it can really add up to make next Christmas much more manageable."

However, for households which have struggled with rising prices and may find it impossible to put aside a significant amount, secured loans could be one way to fund the festivities and any other expensive ventures that need to be covered this winter.

Meanwhile, consumers with a cash pot provided by a secured loan may want to follow the advice of Dr Owen Roberts, head of Callcredit Check, who advises individuals not to panic buy presents and to always shop around for a good deal.

People have yet to build up a substantial retirement cash pot which can comfortably fund their lifestyles when they leave the workforce, it has been said.

As such, people are living frugally now in order to make sure they have enough for later life, claims Hetal Parmar, manager for savings at Alliance & Leicester.

"We all look for a comfortable lifestyle in retirement and whether it is paying for a holiday, updating the car or covering the costs of healthcare or whatever it is," he says, although such ventures could be paid for with a loan.

Indeed, 58 per cent of people have told the bank that they are under no illusions that their retirement is going to be an extravagant time, Mr Parmar adds.

Research by the bank discovered that 35 per cent of people will make or have made sacrifices in order to build up their financial retirement coffers.

But for households which would rather not scrimp and save for years to come, secured loans could provide the cash to pay off any outstanding debts and may cover the future's ventures, such as a holiday or a car.

Households may want to look for other ways to fund their Christmas festivities after one sector organisation has warned consumers that bank charges for going overdrawn have shot up within the past year.

As such, the £25 charge as it stood in November 2007 has now increased to £30, claims MoneyExpert, meaning that Britons may now want to consider taking out a loan in order to pay for any winter ventures.

Indeed, the price of dipping into an overdraft is one present that people will not want to open on Christmas Day, Sean Gardner, director of the website claims.

"Across the board borrowing is increasingly expensive and those customers living in their overdraft need to be aware that in the majority of cases they'll pay a premium for this cash," he says.

Furthermore, Jim Hodgkins, managing director of CreditExpert.co.uk, states that families can still have a fun holiday season without splashing out on expensive gifts.

But for revellers unwilling to scrimp, secured loans could not only fund the expense of Christmas, but also may pay for any winter home improvements needed, such as extra insulation, a new boiler or renovations for 2009.

With Christmas the most attractive time for burglars to brave the freezing weather, one organisation has urged people to make sure that they have home insurance to protect their climbing contents value.

Indeed, as the presents start to pile up, would-be thieves may be tempted to see what expensive items they can get their hands on, warns Virgin Money.

Homeowners who have taken out a loan to cover the festive fun may also want to pay for a comprehensive home insurance policy, as well as extra security measures which could keep the burglars at bay.

And even though there is a credit crunch, Grant Bather, spokesperson at Virgin Money, says: "We'll still be spending and buying presents and entertaining and that means potentially thousands of pounds worth of extra goodies in homes over Christmas."

Furthermore, esure says that accidental damage cover is also important in case an unexpected incident occurs.

Whether spent on an insurance policy, Christmas gifts or on home improvements to boost security, secured loans could provide a much-needed cash injection for families this holiday season.

People approaching retirement may want to consider taking out a loan to maintain a comfortable lifestyle after research has revealed that nearly half of over-55s are concerned they will have to live frugally.

According to Birmingham Midshires, 21 per cent of over-55s questioned claim they will take on a part-time job to supplement their retirement income.

Furthermore, 33 per cent say that they will live on a minimum budget, although both unfavourable options could be replaced by a secured loan, which may boost the retirement coffers of a household.

Tim Hague, director of savings and investments at Birmingham Midshires, says: "When people should be winding down to their retirement and enjoying their financial nest egg, the over-55s are more concerned than ever about whether they can afford to live on what they have saved."

Indeed, Alliance & Leicester found that 42 per cent of the over-50s questioned claim that they plan to make sacrifices, or have already done so, in order to boost their retirement funding.

But secured loans could be one way to pay for any large ventures people in retirement may wish to take, be it a new car, a luxury cruise or much-needed home improvements.

People worried about whether now is the right time to take out a loan to pay for Christmas may be interested to hear the advice of one sector commentator.

According to Darryl Bowman, director of CreditExpert.co.uk, the holiday season is a time to have fun and people may not want to sacrifice that in order to stay in the black.

Indeed, he claims that if individuals do decide to go into debt, they should do so responsibly, while one option households may think is the most suitable for them to cover their costs could be secured loans.

"Don't over extend yourself and try your hardest to find the right product that is best for you and costs you as little money as possible," Mr Bowman advises, while people may be interested to know that secured loans could have a lower annual percentage repayment rate than other loans.

Such a cash injection may be needed after Abbey revealed that disposable income has dropped by 29 per cent within the last two years.

While secured loans may provide a Christmas cash pot, the lender may be given security in the form of a current property, should the borrower stall on repayments.

Energy providers should not be seen as enemies and may be able to help families who are struggling to pay their gas and electricity bills, it has been claimed.

Before taking out a loan to cover expenditures, people may be interested to hear that according to one sector commentator, there may be tariffs available for low-income households.

Maria Wardrobe, warm homes campaigner for National Energy Action(NEA), also claims that switching providers may result in cheaper gas and electricity bills for individuals, although if paying for energy is just the tip of the financial iceberg, secured loans may help to cover costs.

"I don't really think we are going to see any reductions in the price of energy until 2009 sadly, although we would be greatly appreciative if this were the case," she says.

Furthermore, research by the NEA found that the average annual gas bill is £817, while electricity stands at £471.

As such, as prices may continue to rise, secured loans could provide struggling households with a cash pot to cover costs until their financial situation begins to improve.

People may want to consider taking out a loan to pay for energy-efficient measures after it has been claimed that home heating bills can be reduced by some simple green actions.

Installing an energy-efficient boiler and lightbulbs, as well as insulating a property, can shave the pennies off rising household expenditure, says Jane Gatiss, PR manager for eaga and Warm Front, a governmental grant scheme.

Households which fit such lighting may find themselves pocketing an extra £10 a year per bulb, she claims.

"If you are eligible for the scheme you can benefit from things such as loft and cavity wall insulation, glass proofing and central heating systems," Ms Gatiss advises.

But for households who do not qualify for such a grant, secured loans could be one way to make green home improvements, which could end up in individuals saving money further down the line.

Such financial help may be required after National Energy Action revealed that between 2003 and 2007, electricity prices increased by about 60 per cent, while the cost of gas shot up by 90 per cent.

People may be encouraged to flood proof their homes if there was a VAT exemption on the cost of putting up such weather defences, it has been claimed.

Money would be saved by the government and households in the long term if flood repair and defence work was made cheaper, says Graeme Trudgill, technical and corporate affairs executive for the British Insurance Brokers Association (BIBA).

And while a loan may cover the costs of making a home weather proof this wet and windy winter, a large amount of money could be required for people to replace damaged items until an insurance payment comes through.

Indeed, Mr Trudgill says a lot more can be done to provide adequate flood protection, stating "anything we can do to help with the defences of the property and making it more affordable is a very sensible thing to do in our opinion".

BIBA has also called on insurance firms to offer improved terms and conditions or discounts to those property owners who act to reduce flood risk.

As such, taking out secured loans could not only help households cover the cost of storm proofing a home, but may also lead to lower priced insurance policies, further saving money.

People wondering whether to take out a loan to pay for essential home improvements may decide to do so after hearing the warnings of one organisation.

According to uSwitch.com, 42 per cent of households are putting safety at risk by not getting their boiler serviced, a move which could lead to individuals being poisoned by potentially fatal carbon monoxide.

In addition, 64 per cent of households admit that they do not have the cover in place to pay for the repair bill if a boiler or heating system breaks, the website's research discovered, although a loan could pay for any winter expenses.

Commenting on the findings, Ann Robinson, director of Consumer Policy at uSwitch.com, says: "With household budgets stretched to the limit, making a quick saving can seem very tempting."

And she continues: "However, not having an annual gas safety check could have some very serious consequences for both your health and your finances."

Such news comes after the website recently reported that people were chancing their safety by driving cars that were not roadworthy, due to financial pressure.

But for any home improvements needed, individuals may want to pay for such ventures with secured loans.

People may want to give their accounts a warming boost with a loan, after one sector organisation claims that 5.4 million households in the UK are suffering from fuel poverty.

According to National Energy Action (NEA), the average gas bill has seen a 147 per cent price increase from January 2003, while the cost of electricity has shot up by 94 per cent in the same period.

Indeed, not only are such increases resulting in fuel poverty, but also poor energy efficiency and low household income, states Maria Wardrobe, warm homes campaigner for the NEA.

However, it could be said that secured loans may pay for greener home improvements which could see energy bills cut further down the line.

"Energy prices are the one[s] that [are] the most volatile at the moment but we do need to address the other two [factors]," she says.

Research by the NEA shows that since the start of 2008, electricity prices have risen by 27 per cent, while gas has shot up by 44 per cent.

Secured loans may be the wise option for individuals looking for a way to secure cash to cover the cost of bills or to upgrade home appliances.

Britons may find themselves turning to a loan after a study has revealed that people are experiencing on average five cash-free days after their wage has run out.

Over 60 per cent of individuals told Abbey that they will have to make sacrifices this Christmas as they are struggling to extend the cash in their current accounts to last until their next pay cheque.

Furthermore, the bank claims that disposable income has dropped by 29 per cent in the last two years, which may mean that secured loans could be one option for households to fund everyday expenditures or much-needed home improvements in time for the festivities.

Commenting on the news, Steve Shore, director of banking at Abbey, says: "A staggeringly high number of people regularly fail to budget effectively each month and end up running out of cash before their next pay cheque."

However, AXA recently claimed that unless households enjoyed an income of £70,000, families would have to dip into savings to pay for everyday items.

But one way which may avoid that is to apply for a secured loan, where the total lent could depend on the amount of mortgage owed and household incomings.

Parents may want to take out a loan to pay off money owed, after the leader of the Liberal Democrats Nick Clegg has warned that youngsters face a bleak future riddled with debt.

Speaking at a Youth Parliament event, Mr Clegg said: "We've been addicted to debt and now we're having to go cold turkey," adding that the economy is in its current mess because of people's poor spending habits.

However, a secured loan could be one way for households to wipe the sheet clean and pay off any outstanding money owed, which may ensure a brighter future for their youngsters.

"Every one of us is going to borrow money at some point in our lives. To buy a home. To buy a car. To afford university. We need to know how it works," he told the audience.

Mr Cleggs comments come after AXA advised that putting ten per cent of a monthly wage away may leave individuals with a cash pot to spend on Christmas presents.

But whether they are used to fund this holiday season, pay off debt or to buy a large purchase such as a new car, secured loans may have a lower annual percentage rate than other loans on the market.

Although making a business green can save money in the future, upfront investment is needed, it has been said, although a loan could cover such costs until a firm reaps the financial rewards.

The National Computing Centre (NCC) states that making IT systems environmentally-friendly can reduce expenditure in the long term, although people may be put off by the initial money needed at the beginning.

Commenting on the issue, Michael Dean, group marketing manager at the NCC, says although "organisations are happy to undertake easy to implement solutions, such as switching off power of PCs overnight and print management, capital investments are less likely to be signed off".

Indeed, the Department for Environment, Food and Rural Affairs has upgraded their infrastructures to become greener, at a cost of £3.8 million.

However, smaller firms looking to save money against rising energy prices may want to follow the department's lead, although secured loans could provide the initial outlay until money is recouped.

Such loans may be secured against a current property, to ensure that the lender is protected should the borrower stall on payments.

People need to be aware of the financial help they can receive if they are out of full-time work for a long period, it has been stated, although a loan could provide a cash pot for those suddenly without a job to fall back on.

Individuals also do not realise the changes to the Welfare Reform Act, a piece of legislation important to workers, says a spokesperson for LV=.

Commenting on the situation, she explains that nearly 18 million people in the UK "are unaware of financial support that could be available to them and the fact that the Welfare Reform Act has bought about quite significant changes to payments people might be able to receive".

Research by the firm found that 5.8 million people could come under severe financial pressure should they be unable to work, because they are unsure about what they are entitled to or expect to receive no monetary assistance from an employer.

But rather than putting themselves in an uncertain situation, individuals may want to take out a secured loan, which could reassure them that they have money to fall back on should they lose their job.

Women are more concerned than men about the future of their savings and whether or not they have enough for their retirement, a recession survey has revealed.

Financial security is a concern for 43 per cent of women, although this figure drops to 25 per cent for men, the study by Moneywise.co.uk found.

However, a loan may allow expenses such as interest owed on credit cards to be paid off, therefore freeing up cash which could be put to one side for the future.

Rachel Lacey from the website, says: "The question is whether men are over-confident about the future or are in a better position for their old age."

But for those who wish to take out a secured loan, they may want to remember the warnings of the Money Advice Trust, which said that lenders and borrowers have a joint responsibility to make sound financial decisions.

One such decision could involve secured loans, although the lender may want to make the person aware that this type of loan could be secured against a property.

Many people would not be able to survive if they put out of work, it has been claimed, although a loan may provide a cash injection to tide households over should such a scenario occur.

According to LV=, individuals need to check their financial security regularly to ensure that they have the correct income protection.

"The research showed that on average, people could manage [without an income] for two months or less. It just goes to show that people might come under a lot of financial pressure quite quickly," a spokesperson for the firm says.

Furthermore, individuals do not realise the position that they would be in should they find themselves out of work, she adds.

In addition, a survey by LV= discovered that 30 per cent of adults state that they could not survive for more than two months on what they have saved if they were put out of full-time work.

But if a household suddenly found themselves with a drop in income, secured loans could provide a cashflow and may have a lower annual percentage repayment rate than other loans.

Employers are set to become more choosy about who they hire, therefore leading to a highly competitive job market because of the financial downturn, one expert has warned.

And although those responsible for taking on new staff will keep looking for potential employees, they will be more selective about who they choose, claims Steven Kirkpatrick, managing director of Adecco Retail.

"They’ll want to stay close to the market to make sure that they still have access to the best people when they become available, but won’t necessarily be hiring as freely as they have done in recent years," he says.

People worried about job security or a drop in income may want to consider taking out a secured loan, which could be open to more households than other loans as it may be secured against a property should a borrower stall on repayments.

The Trades Union Congress has previously reported that unemployment will rise from 1.7 million - what it currently stands at - to over two million by the end of 2009.

Secured loans could therefore provide some financial security for households struggling to pay for outgoings and wondering about the security of their job.

Britons who live alone and find it hard to make ends meet may want to consider taking out a loan, after a financial expert has warned that mortgages and rent stay the same price, no matter how many people reside in a property.

Single people spend twice as much money as those in a couple do, according to David Kuo, head of personal finance at Fool.co.uk.

"If you prepare yourself a household budget, you will find that many of the things out there are unrelated to how many people actually use those services," he says, although a secured loan could be one way for homeowners to pay for expensive ventures where they have to foot the bill alone.

Additionally, heating a property costs the same no matter how many live there, Mr Kuo adds, another area which people may find they are struggling financially with.

But for those needing a large amount of money to pay for home improvements or just to cover costs while income is tight, secured loans could be one option individuals may want to research.

Rather than taking it easy, retirement is now seen as an opportunity to live life to the full, it has been reported, while individuals looking to have fun after they have left the job market may want to fund life's adventures with a loan.

World cruises are one popular pastime that seniors like to take part in, says Mark Locke, a spokesperson for the pensions provider AEGON, although such expense could be covered by secured loans.

"As long as people are living longer and healthier lives, which at the moment there is a trend for, that will continue and increase over the coming years," he says.

Furthermore, people in retirement "don't want to sit around and just knit", Mr Locke adds, while individuals may use their spare time to travel the world, carry out long awaited home improvements or treat themselves to a new car.

Research by AEGON discovered that running out of money is a concern for 22 per cent of Britons questioned.

But for those who worry that their pension may not fund the lifestyle they want, a secured loan could provide extra cash and may have a lower annual percentage repayment rate than other loans.

People may have to consider taking a loan out to pay for the festivities this year after a survey by a high-street building society has revealed that individuals are not saving what they should be.

While 60 per cent of people questioned by Nationwide admit that they are not putting as much money aside as they should be doing, one per cent believe that saving is not an important habit to get into.

"However, our latest research shows a slight increase in the number of people who are feeling positive that they will be able to save the correct amount in the future, which is small step in the right direction," says Matthew Carter, director of savings at Nationwide.

Mr Carter adds that he hopes Britons have a savings plan soon, although if personal finances need bolstering quickly, secured loans could be one way to obtain funds.

It was previously revealed by AXA that households with at least a £70,000 income were the only ones who did not have to dip into savings to pay for everyday items.

Rather than using savings, or struggling to get by, people may want to take out a secured loan to cover their holiday costs.

People looking at making home improvements - which could be paid for with a loan - may be encouraged to hear the advice of one sector commentator, who says that potential demand for builders could mean work gets done quickly.

Chris Martin, an architect at theHousePlanner, says that a fall in orders may mean the architects and builders get on with the job with more speed.

"Inevitably the economic downturn means that people tend to remain in their existing homes for a longer period. Thus, many owners' thoughts turn to improving or adapting the home to suit their current needs," he states.

In addition, workmen and other property experts hired may value the job at a more favourable price because of the credit crunch, Mr Martin adds.

Meanwhile, FindaProperty.com claims that lower interest rates and property prices could lead to more buyers entering the housing market.

People considering home improvements, especially after Mr Martin's comments, may want to consider taking out secured loans to fund such a venture.

People will recycle old gifts this Christmas to give to others, it has been claimed, although this could lead to a potentially embarrassing situation.

A study by Credit Expert reveals that 18 million individuals will use this money-saving technique, although for those who would rather buy new and avoid a family showdown, a loan could provide that extra bit of cash to get households through the holiday season.

"Whatever you do spend this Christmas, you can improve your finances by remembering the crucial thing is to borrow responsibly," says Jim Hodgkins, managing director at CreditExpert.co.uk.

Such ways to borrow could be to take out a secured loan, which may have a lower annual percentage rate than other loans, therefore freeing up more cash that could otherwise go on repayments.

It was previously revealed by a Lloyds TSB study that 48 per cent of people admit that they cannot be as generous this year as they were last Christmas.

However, secured loans could be one way to fund expenditure such as paying for the festivities, although any purchases for the new year - like a new kitchen - may also be paid for this way.

Making an investment now while the markets are depressed could be a wise move for an individual to make, it has been claimed, a venture which could be covered by a loan.

Putting away £100 a month is a good place to start when it comes to saving, says Meera Patel, senior analyst at Hargreaves Lansdown, although for people without such disposable finances, secured loans could be one way to obtain the cash.

Focus should not be on whether or not the period is long enough for a person to invest, she states, adding "if you can look at five years plus then the chances [are] that making an investment at this juncture could prove quite lucrative".

And ploughing money into a venture at "the maximum point of pessimism and fear in markets" could be an option for potential investors to take, Ms Patel concludes.

Research by the firm reveals that 58.97 per cent of people claim that the stock market will deliver high-value returns over the next three years.

But for those who would rather spend large sums of cash elsewhere, secured loans may also provide the funding for an extended holiday, a new car or expensive home improvements.

Drivers may find themselves thousands of pounds short in the long run because of poor maintenance of vehicles, it has been reported, although a loan may cover such expenditure.

Poor habits are ramping up expensive repair bills which, combined with increasing motoring costs, is leaving drivers with a hefty debt, Tesco Personal Finance claims.

A study by Tesco Car Warranty reveals that 78 per cent of motorists fail to keep up with regular maintenance of their cars, while 14 per cent drive in the wrong gear - a habit which could result in a £800 bill for a new clutch.

Head of insurance at Tesco Personal Finance Allan Burns says: "In the current economic climate, it's more important than ever for drivers to manage their motoring costs to ward off any unexpected bills," although such bills may be covered by a secured loan.

Furthermore, AXA has recently reported that 82 per cent of people believe that they have less money to spend this holiday season than previously.

But whether it is for a new vehicle, maintenance bills or to cover the cost of Christmas spending, secured loans could be the suitable option for some households looking to finance such expenditure.

Credit is being used to fund everyday living rather than expenditures regarded as luxuries, one sector commentator has said.

As mortgages and utility costs soar, people have to be more economical with their money, says Francis Walker, spokesperson for Credit Action.

"More and more people have to make the pound in their pockets stretch further," she says, adding that a silver lining in the current financial cloud is that food prices are levelling out.

But rather than using high-interest store cards to free up money elsewhere, consumers may want to take out a secured loan, after Credit Action revealed that total UK personal debt now tops £1,448 billion.

Furthermore, interest repayments have increased, although secured loans may have an annual percentage rate lower than other loans, which could mean smaller monthly payments to take the pressure off households.

Indeed, people looking to secured loans to pay for expensive ventures that are otherwise unaffordable, such as home improvements, may be asked how much is owed on a mortgage before the lender decides the amount to give.

Britons are always able to find the money to pay for an expensive Christmas, no matter what financial mess they are in, it has been claimed.

Only those households earning more than £70,000 a year have avoided using their savings to pay for everyday items, says Steve Folkard of AXA.

"How people choose to finance the festive period might be different this year, as people have less cash to spend you’d expect more people to be forced to borrow money on credit cards and overdrafts," he continues.

It could be said that rather than relying on credit, loans could be a better option to pay for festivities.

Over 20 million households have been using savings to pay for expenditures since the start of 2008, research by AXA discovered.

But rather than use savings shored up to provide a stable financial future, secured loans - which may give the lender security in the form of a property - could be an option for people to consider.

Businesses who are finding things financially difficult could benefit from tax cuts and kick-start the economy at the same time, one sector commentator has claimed.

Commenting on the possibility of tax cuts for small firms, Charles Davis, economist at the Centre for Economic and Business Research, says that aiding businesses in the private sector could help the UK weather the economic storm.

"I certainly think something like a tax cut aimed at helping businesses out, especially small businesses, that would be a good call or perhaps a cut in VAT," he continues.

But for companies which cannot afford to wait around until such financial rewards are made, a loan could cover costs until the markets become stable again.

Gross domestic product dropped by 0.5 per cent in the third quarter of 2008, while the previous quarter saw a 0.0 per cent movement, according to the Office for National Statistics.

To help equip themselves for such a downturn, small businesses could invest in secured loans, which may come with a lower annual percentage rate than other loans, potentially alleviating financial pressure.

Although saving for Christmas is often advised at this time of year, some households will not have any money left over once essential expenditure and household bills are paid for, it has been stated.

Saving can be rewarding but people may find it difficult, Steve Folkard of AXA has said, although a loan may cover the cost of expensive outgoings.

"Put ten per cent of your salary aside this month and see how you get on. If you manage to get through the month you'll have an extra bit of cash to spend on Christmas presents," he claimed.

Moreover, people should spend fifteen minutes a week organising their finances, Mr Folkard added, while researching secured loans could be one avenue individuals may wish to look into.

And research by AXA has uncovered that over the first six months of 2008, the decline in household wealth coincided with rising fuel, food and utility costs.

While loans are often thought of as paying for large ventures, secured loans may also be used to cover expenditures that are struggling to be accounted for amid the credit crunch.

Now is the right time to buy a new home because property prices are lower than they have been previously, one sector commentator has claimed.

The current economic climate can provide the opportunity for homeowners to move up the property ladder, David Amstell of Briffy.com has said.

"If you are selling a house for £200,000 or £300,000 and moving to a house that is £300,000 or £400,000, now's the time to do it," he stated, while any home improvements needed before a sale could be paid for with secured loans.

In October 2008, house prices fell by 2.2 per cent, according to the Halifax House Price Index - 13.7 per cent lower on an annual basis.

Furthermore, the average UK house price is 22 per cent higher than five years ago, although a new kitchen or extension may boost this figure.

People who are considering a move may want to take out secured loans to fund such a venture, which could have a lower annual percentage rate than other loans.

People looking at funding a new business with a loan may want to hear the advice of one sector commentator, who claims that online marketing can allow small businesses to "punch above their weight".

Efficient online advertising could boost the market presence of small firms, according to Tink Taylor, business development director of dotMailer.

"Viral marketing tactics, such as forward-to-a-friend and adding content to social networking links in emails, allows businesses to use their captive audiences to target new, like-minded recipients," Mr Taylor says.

Furthermore, individuals looking to set up a new company with a loan may want to use social media to build and develop their brand.

According to a Constant Contact survey, 41 per cent of firms identified email as the most effective method of marketing during the holiday period.

Such technological upgrades could be covered by secured loans, which may have a lower annual percentage rate than other loans, which could take some financial pressure off a new company.

Lending decisions may not have been as responsible as they could have been over the past five years, it has been claimed, a statement which may refer to secured loans.

The availability of cheap borrowing meant that people who could not afford the repayments were receiving cheap credit, a spokesperson for the Money Advice Trust warned.

"Hopefully that isn't something we are going to return to. It will be that lenders tighten up their lending criteria not just to get through the economic downturn, but also just as a best practice," she says.

Furthermore, financial firms need to make sure that they are lending to people who can afford it, she adds, which could be important information for individuals who have been considering getting a loan.

But to avoid the problem of people getting into difficulty quickly, potential borrowers may want to research which loan is best for them.

In September 2008, the government announced that the HomeBuy Direct scheme may grant first-time buyers an equity loan if their household income is less than £60,000.

However, for those who already own a home, secured loans may be one viable option for people looking to finance a large venture.

Sellers should look at ways to increase the marketability of a house, although these home improvements do not have to cost thousands, it has been claimed.

Everything possible should be done by homeowners in order to increase their chances of making their property more attractive to perspective buyers, Phil Spencer, who has presented Channel 4's Location, Location, Location, advises.

"It's about making a point of difference between their home and one that might be for sale a bit further down the road," he states, while a loan could pay for any upgrades.

Kitchens and bathrooms are often deal-breakers when selling a home, Mr Spencer claims, adding that changes such as new surfaces, cookers, fridges and cupboard doors are all ways to make a room appear new without spending a vast amount of money.

A survey in October 2008, commissioned by Lloyds TSB and carried out by Tickbox.net/Opinion Matters, found that half of estate agents have seen an increase in people asking to take their property off the market while they make home improvements.

One way to pay for such upgrades may be by secured loans, where a property could act as a surety for the lender should the borrower stall on repayments.

Now is a good time for people to make medium and long-term investments because the market is pricing for a recession.

Such are the claims of Adrian Lowcocks, senior investments advisor at BestInvest, who has claimed that individuals deciding whether to invest may want to do so now, although such outgoings may be covered by a loan.

However, those who wish to invest for the short term have to be aware that while prices are low, "there is still risk and if you need that money in the short term you should be keeping it liquid and available", Mr Lowcocks advised.

The Association of Investment Companies has found that 56 per cent of active investors claim that the credit crunch has not slowed down or changed their saving and spending habits, a sentiment reflected by 31 per cent of the public.

Whether the investment is a property at home or abroad, or a share of a business, individuals may want to consider secured loans to cover a venture.

Such loans could be more easily available from banks because the lender may have security in the form of a property.

UK and central European residents, who have been feeling the effects of the credit crunch and so taken out a loan to cover expensive ventures, may want to use any remaining money on a trip to Iceland.

Such a decision may be made after services in the country are 50 per cent cheaper than the beginning of the year because of the weakened currency, Maria Reynisdottir, assistant project manager for Visit Reykjavik, has claimed.

Furthermore, she announced that airlines are offering special deals, often combining shopping packages.

"We have indeed seen an increase in tourist numbers in the last few weeks, mostly from central Europe, Scandinavia and the UK and heavy spending in shops - we can see that in the increase in tax refund claims," she continued.

According to Statistics Iceland, 485,000 foreign tourists visited the country Iceland in 2007, compared with 303,000 in 2000.

But for those who have not yet decided how to pay for that special purchase, secured loans could fund such ventures and may have an annual percentage rate lower than that of other loans.

An energy-efficient home could fetch up to £15,000 more from buyers, it has been claimed, which may convince some homeowners to take out a loan to pay for green improvements.

The Hidden Value Guide from the Energy Saving Trust also reveals that two-thirds of people think that energy performance certificates will be more attractive to homebuyers, as a property with lower running costs could save money during the credit crunch.

"Gas is going up, electricity is going up, if you can save yourself money and can make yourself more eco-friendly then more people will go for it," comments a spokesperson for British Eco Energy.

Moreover, people should budget, work out what they have to spend and start moving towards the goal of a more energy-efficient home, he continues, although secured loans could feature in a household's budget plan.

Rain-harvesting, installing solar systems and wind turbines are all ways which a property could be made greener, he adds, which may therefore reduce energy bills.

Taking out a secured loan could be one way for people to pay for home improvements, although the lender is given security in the form of a property.

Irresponsible lending is just one reason why the economy is in the condition it is now, one sector commentator has claimed, although people may still wish to take out a loan so long as they can afford the repayments.

There is a joint responsibility between borrowers and lenders in making money decisions, a spokesperson for the Money Advice Trust says.

"Lenders have maybe not gone through a person's budget sheet and made absolutely sure that they could afford the payments, but then the same goes for the consumers," she suggests.

Furthermore, people may seek to overstretch their finances in their desire to get on the property ladder, she adds, although it could be said that loans could be the suitable option for individuals who have taken into account any circumstances which may affect repayments.

But for those who have researched all their borrowing avenues and decided upon secured loans, they may already be aware that the lender could assess incomings and outgoings before deciding on the amount that can be granted.

People are spending up to 90 per cent of their wage on everyday essentials such as rent and bills, a study has found, which could leave a finance gap that a loan may cover.

Disposable income has decreased by 29 per cent over the last two years, Abbey has claimed, which could mean that people will have to turn to secured loans to pay for large ventures such as home improvements or buying a new car.

"With the cost of living increasing so drastically in the past two years - in particular the cost of essentials such as food and bills - it's important to make sure that you budget effectively and economise wherever you can," advised Callum Gibson, head of Abbey credit cards.

However, Nationwide has reported that following the actions taken by the government and the Bank of England to stabilise the economy, confidence levels in people increased by 23 per cent.

But until wages rise or interest rates are cut, households struggling with day-to-day expenditure may want to look into secured loans, where factors including the amount of mortgage owed may be taken into consideration by the lender.

Families should be fully prepared for Christmas this year and make sure that they are adequately covered should something go wrong, it has been claimed.

Now is a prime time for burglars on the look-out for presents, Norwich and Peterborough Building Society reported.

"If you have a household accident over the festive period, immediately make any temporary repairs necessary to make your home weatherproof and secure, but retain receipts as the cost may well form part of your claim," Steve Kendall, sales and operations director for Norwich and Peterborough Insurance Brokers, advised.

Meanwhile, investing in outdoor security lights can be one way to deter burglars, as well as securely locking windows and doors, the financial firm stated, although such home improvements may be paid for with secured loans.

Taking out a loan now may be a wise move after the Times previously reported that online sales are expected to rise from £5 billion to £7 billion, which could indicate that spending will still be rife this winter.

People worried about such costs may want to take out a secured loan, which could be an attractive option as it may have a lower annual percentage rate than other loans.

Over a quarter of Britons have claimed that they will not be able to afford a new car because of financial worries, it has been reported, although secured loans could be one way to cover costs.

And 47 per cent of motorists say that they will have to keep hold of their current car for longer than planned, according to uSwitch.com.

This could result in households struggling with unsuitable and inefficient vehicles for their everyday needs, although a loan could be one way to pay for a new car.

Commenting on the results, Ashton Berkhauer, insurance expert at uSwitch.com, said: "The issue is not the age of the car, but whether it is roadworthy. Unfortunately, this costs money and we are likely to see many more drivers cutting corners and taking chances with their own and other people's safety."

Previously, the British Insurance Brokers' Association warned drivers not to cut back on car insurance when organising their finances during the credit crunch.

Households which rely on a car may want to apply for a secured loan, which could be used to cover all expenses associated with driving, including higher fuel prices and insurance.

Businesses which are managed well will come out the other side of the financial storm, it has been claimed.

Commenting on the new Westfield shopping centre in London, David Kern, the economic adviser for the BBC, said that recession is a test for the skill of managers.

Financial policies - which could involve securing a loan to cover costs - could be said to be another important factor.

"There is too much doom and gloom around; clearly it would have been better if things had been more dynamic and buoyant in the economy but people still have to shop," Mr Kern said.

Such suggestions may encourage Britons with businesses to take out a loan to make their company more attractive, whether it be opening new premises or paying for an IT upgrade.

According to the British Retail Consortium, in September 2008, food and drink was the only sector to show a significant improvement on sales from last year.

Secured loans may be used for any purpose, including starting up a new business, while Britons may find these loans are easier to apply for because the lender could be given security against the borrower's property.

Families or businesses looking to relocate abroad to China may find that their entry is bolstered by investing in shares, it has been claimed, although such a venture may be covered by a loan.

Enterprises looking to take a share of the "most rapidly growing, largest economy in the world" should invest in companies via the stock market and shares, Liam Bailey, head of residential research at Knight Frank, states.

"It is not an easy process to actually get the money in the country and to purchase," he adds, which could encourage British business owners to apply for secured loans, which may be secured against a current UK property.

A report released in October 2008 by the National Bureau of Statistics of China revealed that investment in residential buildings increased by 28.7 per cent compared to last year.

Moreover, the total investment in real estate development between January and September 2008 increased by 26.5 per cent compared to the same time last year.

Families or firms looking to move to a different country in the hope of a stable financial future may wish to research secured loans, which may be more easily available than other loans because of the security against a property.

Being rejected for credit does not mean that a person will necessarily be rejected again, it has been claimed, which could be a relief for those looking to get a loan.

Rather than closing all funding doors available to individuals, a credit rejection simply highlights that a credit rating is already poor, which may enable people to take steps to rectify this, Tom Howard, a spokesperson for the Consumer Credit Counselling Service, says.

"A bad credit rating is usually caused by defaults on payments and the more you default the worse you're rating gets," he claims, which could highlight the need for financial advice and a consideration of all funding options.

Furthermore, being rejected for credit does not make a rating worse, Mr Howard adds.

Credit Action reported that at the end of August 2008, total secured lending on properties stood at £1,216 billion, an increase of six per cent within the past 12 months.

A homeowner loan may be available for UK residents aged over 18 with a minimum house value of £60,000, while such funding options may consolidate debt and pay for home improvements.

People who have taken out a loan to pay for home improvements before making a sale, may be encouraged to hear that a quick deal is possible, according to one sector commentator.

Selwyn Lim, director of Mouseprice, says that a competitively-priced property could see market success, especially as people would be willing to buy what they perceive as a bargain.

"The length of time on the market is really dictated by how aggressively the person prices the property," Mr Lim states, which could encourage some people to take out secured loans in order to make their home even more attractive to potential buyers.

Furthermore, applying for a secured loan to cover ventures such as a new kitchen or an extension may be wise, after Rightmove's House Price Index in October 2008 found that compared to September, the average asking price for a property was £229, 691 - up one per cent.

In addition, Hometrack discovered that in October 2008, there was a 5.4 per cent increase in deals agreed compared to the previous month.

Such findings may encourage homeowners to apply for secured loans, which may have a lower annual percentage rate than other loans - potentially an attractive feature for households.