Apply Now For Your FREE Loan Quote!
Wed 31st Jan, 2007
Posted in Bad Credit, Consumer Credit, Personal loans, Homeowner Loans, UK Finance, interest rates, Consumer debt, Financial products, Spending, Unsecured loans, Financial news, Borrowing, Car ownership, Car finance, Car loans, Personal debt, Secured loans at 10:09 am by admin
If you have very poor credit, then it may be advisable for you to consider very carefully before you take any extra credit on board. However, if you do need credit, there are a number of lenders that are currently catering to this market. The loans reviewed here are not dependent on home ownership and are available to be used on cars. Accept car credit for example, offer car loans that allow you to buy from any car dealer in the country. They have a loan on offer at 28.7 percent that is a fixed rate. Accept do not advise what the early redemption fee will be but do state that there is likely to be one. There are no other fees associated with the loan. This is the Gold loan.
If you have trouble qualifying for the Gold loan, then Accept also offer a Silver loan that comes in at a more expensive 36.2 percent. This loan offers similar terms to the Gold loan, apart from the higher interest rate that is charged.
An even more expensive option is Auto Credit Finance which offers an online car loan priced at a whopping 38.9 percent. It would not be very advisable to take out a loan at this price but it available with no arrangement fees and an early redemption charge that varies from applicant to applicant.
Finally, there is the Personal Loan Centre which offers an unsecured loan at 48.2 percent. This loan is available to all qualifying applicants with no requirement for security. The Loan is offered by the London Scottish Bank Group and research shows that actual APRs may be as high as 60.8 percent. At this rate you may be better off waiting till you can buy your car outright.
Permalink
Posted in Consumer Credit, Personal loans, Banking, UK Finance, interest rates, Financial news, Borrowing at 10:08 am by admin
One week after being hit by a surprise interest rate increase, city analysts were predicting that the inflation rate for December will be close to 3 per cent, an 11 year high. November 2006 was the seventh consecutive month it was above the 2 per cent target.
The Bank of England’s has set a target rate of 2 per cent. If the inflation rate does rise above 3 per cent, Governor Mervyn King will need to write a letter of explanation to the government, the first time since the Bank gained independence in 1997.
Mr King will also need to predict how long it will be before the inflation rate returns to the 2 per cent target and how the Bank of England expects to meet the Government’s monetary policy objectives.
The latest Consumer Prices Index (CPI) for December was known by the Bank of England and was the catalyst for the recent interest rate increase of .25 percent, to 5.25 per cent.
Malcolm Barr, of JP Morgan Chase Bank, and ING economist, James Knightley, expects the figure to reach 3 per cent,
Investec economist, Philip Shaw, who initially predicted a modest 2.8 per cent has since admitted there is an “upward risk”, which may see it rise as high as 3.1 per cent.
He said: “It is fairly easy to see it going up to 2.9% or 3%, but 3.1% is also possible, although you’d need a huge surge in food prices in particular to get that sort of jump.”
All of this is stressing news for the loan industry and the housing market, as it points to future interest rate increases, some predict as early as March.
Permalink
Tue 30th Jan, 2007
Posted in Bad Credit, Consumer Credit, Personal loans, UK Finance, Credit Card, interest rates, Consumer debt, Financial products, Spending, Unsecured loans, Financial news, Borrowing, Personal debt, Store cards at 10:01 am by admin
The Debt Counsellors Annual UK Debt Survey, has turned the focus from unsecured loans to store card debt and credit cards as the prominent factors causing debt problems in UK households.
The combined of transactions made on charge, credit, debit and store cards is expected to grow to £639 billion in 2010, according to Credit Action. Currently, more than 41 per cent of UK adults who need help dealing with their debt problems owe money on store cards, while credit card debt is a major factor in 91 per cent of cases.
The unregulated interest rates on store cards have a devastating effect on household finances. Store card debt is relevant in January as consumers are hit with the results of Christmas shopping. Research from Alliance & Leicester Personal Loans reveals that 23 per cent of people used store cards for Christmas spending. The problem arises because they are not using the cards for convenience, but to spend money they do not currently have.
John Porter, senior counsellor with the Debt Counsellors, said:
“Store cards can be tempting because of free gift incentives or offers of discounts. It is fine to take advantage of these but the balance must be paid off immediately, otherwise excessive interest fees will be incurred.
“In fact, the best advice is to avoid store cards altogether, because store card debt can mount up very quickly due to the high interest rates and it is best to keep temptation at bay.”
Porter adds: “Anyone worried about their store card debt, or any other kind of personal debt problems, should get professional debt counselling. The Debt Counsellors provide free, confidential debt advice.”
Permalink
Posted in Consumer Credit, Personal loans, Homeowner Loans, UK Finance, interest rates, Consumer debt, Homeowners, Financial products, Spending, Property, Unsecured loans, Borrowing, Secured loans at 10:00 am by admin
A lot of people are very wary about taking out a secured loan. This is because they are aware that if they fail to keep up with all of their repayments, they know that their house will be at risk. However, despite the risks of secured loans, there are also a number of advantages which mean that it would be wrong to overlook this type of loan. All you have to do is make sure that you do not borrow more than you can handle and that you are confident that you will be able to make all of the repayments.
The first advantage of a secured loan is that the interest rate that you are charged is likely to be a lot lower than if you were to borrow on an unsecured basis. This is because the lender is confident that the loan is safe due to the fact that it is secured over your property. While this may not be the best news for you, in a lot of cases it will be well worth it since you will be paying less for the loan.
Another advantage of secured loans is that you will be able to get them in a lot of cases, even if you have a poor credit rating. Lenders are far more willing to lend on a secured basis to people who they regard as risky. Again this is because the amount of the loan is backed up by your property.
Finally, you will be able to borrow a lot more on a secured basis than if you were to rely solely on unsecured loans.
Permalink
Mon 29th Jan, 2007
Posted in Bad Credit, Consumer Credit, Personal loans, Homeowner Loans, UK Finance, Credit Card, Consumer debt, Homeowners, Credit record, Property, Unsecured loans, Financial news, Housing news, Insolvency at 12:24 pm by admin
Watchdog groups have been warning the UK government that winter is the hardest time for the impoverished to survive. The recent storms are evidence that the government is short sighted in their plans. While the government works in everyone’s best interest, it is those living in poverty that are hardest hit from unexpected phenomenon like freak storms.
The Bank of England made claims in the last quarter of 2006 that made the debt problem diminish in the wake of a high inflation rate. While this may have been true, it does not take into account the thousands of households who cannot afford the extra heat needed to survive storms and cold snaps. The BoE’s statement never included the house repairs and property damage that storms and subsequent flooding cause.
Many homeowners are faced with an impossible situation. They carry interest-only mortgages and 125% mortgages that include a 30% unsecured loan. Now these consumers must find extra money to make repairs and heat their homes.
History suggests that winter storms will swell the numbers of people needing the help of free debt management groups like Citizens Advice. Unfortunately, those who need the help of a debt management expert are more likely to turn to credit cards, doorstep loans and even IVAs.
Many of these people found themselves without transportation home, and no money to find adequate shelter from the storm.
Power cuts left 100,000 people without power across the UK causing chaos.
It will take several weeks, even months, to assess the full damage and financial cost of the latest storms.
Permalink
Posted in Consumer Credit, Personal loans, Debt Consolidation, Homeowner Loans, UK Finance, Credit Card, interest rates, mortgages, Consumer debt, Homeowners, Financial products, Property, Balance transfer, Financial news, Borrowing, Personal debt, Secured loans at 12:01 pm by admin
A very good way of clearing out of control credit card debt is to secure the debt on your home. This will give you a far lower interest rate and will mean that you have a bit more time to repay your credit card debt and you will be charged a lot less interest while you do repay the debt.
However, there are a lot of things that you should take into account before you decide to secure credit card debt over your home. For one thing, there are certain costs involved in taking out a secured loan and you should ask yourself if it is really worth incurring these costs to secure the debt. The debt will have to be fairly substantial and you should expect it take a significant amount of time if it is going to be worth taking this route.
Another factor that you should take into consideration is that it can end up taking you a very long time to repay a secured loan. For example, if you usually would expect to pay off a credit card debt in about six months, then it may not always make sense to secure this with a five year loan. You would be better off from an interest liability point of view, to pay the higher rate over the shorter period.
The other factor to bear in mind is that securing debt over your home always puts your home at risk. If you fail to make or keep up with your repayments, then you will be placing your home at risk and it may be repossessed by your creditors.
Permalink
Fri 26th Jan, 2007
Posted in Consumer Credit, Banking, UK Finance, Financial news, Bank charges at 10:28 am by admin
Treasury Economic Secretary Ed Balls said the Office of Fair Trading(OFT) hopes to apply the same principles of “fairness and transparency” that have been imposed on credit card charges to the bank default charges. He states banks should not be making a profit from indebted UK consumers, but should be “leaders in corporate responsibility”.
The OFT recently instigated a “fact-finding” investigation to collect information and decide what “proportionate and appropriate action to take”.
Mr Balls said: “This OFT inquiry is serious, and it’s certainly being taken seriously by the banks.”
Mr Balls added: “I’m happy to confirm that the principles which applied in the case of credit cards equally apply in the case of the banking industry and it is for the OFT to get the facts and to judge whether they think the application of those principles and the law requires them to act.
“It’s not for me to judge the facts, that’s for the OFT, but it’s clear the principles which applied in the case of credit cards also apply in the case of the banking industry.”
Liberal Democrat social exclusion spokesman, Matthew Taylor said: “Ministers confirmed what we have known all along - that banks, like credit card companies, cannot justify penalty charges for anything above their administrative costs.
“Everyone needs to know that their penalty charges are illegal and they should phone their bank to claim them back. The £4.5 billion in penalty charges each year by Britain’s top banks is the biggest bank robbery in Britain - against their own customers. It must be stopped.”
Permalink
Posted in Bad Credit, Consumer Credit, UK Finance, Consumer debt, Financial news, Borrowing, Insolvency, Personal debt, Bankruptcy at 10:26 am by admin
According to new findings, it appears as if women in the UK are not claiming bankruptcy as often as they should be. Bankruptcy procedures are in place to allow people to draw a line under their debts and in time, move on with a clean slate, regardless of whether or not they can actually pay off all of the debt. It is actually a great benefit to the bankrupt person if they can go through the procedure and come out of the other side without any debts and ready to make a clear start.
However, it appears as if women are still very much afraid of the social stigma that is attached to declaring bankruptcy. Women are afraid of how they will be perceived and what the financial repercussions will be of bankruptcy and therefore fail to opt for the bankruptcy route even though they would qualify and are in exactly the position that the procedures have been designed for.
It is thought that a greater understanding of what the procedure would involve would allow more women to go through the process. Since the process is designed to free the bankrupt person of overwhelming debt, it would be a great benefit to most women if they did use bankruptcy to get out of their debt troubles if there really is no other option.
As consumer debt continues to grow, it appears as if more and more woman are living with ever larger amounts of debt. In many instances, these woman are insolvent and do not have assets to back the debts that they have racked up. A greater understanding of the bankruptcy process is thought to be key to helping many of these women out of debt.
Permalink
Thu 25th Jan, 2007
Posted in Bad Credit, Consumer Credit, Personal loans, Debt Consolidation, UK Finance, Credit Card, interest rates, Consumer debt, Spending, Unsecured loans, Borrowing, Personal debt at 1:48 pm by admin
Today is Debt Day. The day when credit card bills start arriving and many UK consumers have their first glimpse of the ‘real’ cost of their holiday extravagance.
Martin Lewis, founder of www.moneysavingexpert.com, said: “Why is this Debt Day? December is the time people run up debt and now people are trying to work out what to do – the panic is beginning to set in.
“The important thing to remember is banks and lenders are there to make money out of you and not to make debt cheaper.”
He added: “There is a systemic problem in the UK with debt. We have a nation educated into debt when we go to university but never educated about debt. The vast majority of the UK population is debt illiterate.”
Recent research found that the UK now accounted for a third of all unsecured debt in Western Europe. While the average UK household can manage their debt, many of societies vulnerable have been left struggling under higher council tax bills, interest rate hikes, and utility costs. Their unwillingness to restrain their spending can result in personal insolvency reaching record levels in 2007 as the “debt crisis” claims more victims.
There are steps consumers can take to reduce their money woes.
Martin Lewis outlined a few tips that debt-ridden householders should consider:
Do not deal with credit card debt by switching to a zero per cent interest deal. This is not always be the best option.
Only making minimum repayments is dangerous. Paying off credit card debt of £3,000 at 18 per cent with a minimum of two per cent or £5 repayments will take almost 40 years to repay, and incur an interest total of £6,300.
Pay off debts with savings money. Mr Lewis said: “This is a ‘no brainer’. The best savings account on the market pays a basic four per cent interest whereas the typical high street credit card charges 18 per cent interest.
“As such, £1,000 in saving will make you £40 a year but £1,000 in debt costs £180 a year.”
A little careful planning, and some common sense should help most UK consumers survive Debt Day.
Permalink
Posted in Consumer Credit, UK Finance, Spending, Online shopping at 1:46 pm by admin
If you enjoy reading a specific magazine, and find yourself spending a lot of money on these magazines, then you should consider purchasing the magazines through a magazine subscription company. There are many companies online offering a range of prices and discounts.
Standing in line at a checkout counter, you will almost always notice a small selection of popular magazines for sale on display. So you pick one up and scan through it and decide to buy it, spending just a tiny amount on it. The next time you’re at the store you end up purchasing that same magazine and continue to do so every time a new magazine comes out. Before you know it, you end up spending more money than you would have wanted to on a few magazines. That is why purchasing a magazine subscription ends up saving you a lot of money.
There are many magazine companies online that offer massive discounts on magazine subscriptions. The majority of magazine subscriptions end up saving you 50% or more, however there are some sites that offer you savings of over 80%. However, be cautious when your purchase and agree to a magazine subscription. Be sure to read the fine print, and ensure that if and when you cancel the subscription you will be refunded and no longer charged. You will also want to make sure that the sales tax and shipping costs is all included in the price that is offered. Often the price is really cheap, but once the tax and shipping charges have been added, it could cost you more, so be aware of those charges.
By searching online and comparing the prices, you are bound to find a great deal on a magazine subscription.
Permalink
« Previous entries ·
