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Archive for May, 2007

Student Loan News

Wednesday, May 30th, 2007

The cost of studying at a University has become more expensive and more people are finding it difficult to cope with the fees and other expenses involved with their education.  That is why lenders are starting to offer students loans to help them pay for their education costs, such as books or their costs of living.  There are many financial lenders who have aimed products at helping students financially throughout their years at University.  These loans will help the students with their cost of living, it can help in the purchase of computers, books, fees, accommodation and other expenses that a student will be required to pay.

For students who want to pursue higher studies there are a number of lending agencies available throughout the UK that are willing to offer a student loan with good terms and low rates.  You will find many sites online where you can apply for credit, or you can ask at your bank about student loans to help you pay for your costs throughout your years in University.  If you are looking at studying for a master’s degree, you can also find loans that will help you pay for the additional expenses that are involved.  You will find secured as well as unsecured student loans.  However with a secured loan the lender will require an asset of equal value to the loan, which the student may not be able to provide, however often lenders will allow the parents of the student to use their home as a form of security for the secured loan.  This can be risky for the parents of the students, so they will then urge them to sign on for an unsecured loan.  Whatever type of loan you have, you will want to make sure that you will be able to meet the monthly repayments.

Posted in Banking, Borrowing, Consumer Credit, Consumer debt, Financial products, interest rates, Personal loans, Secured loans, Spending, Student debt, UK Finance, Unsecured loans | No Comments »

Debt Collection Problems Increasing

Tuesday, May 29th, 2007

The number of county court judgments against debtors increased from 802,886 in 2005 to 1,022,166 in 2006, up 27 per cent. Recent figures reveal that individual debt rose to an incredible £1,310 billion in 2006 from £116 billion in 2005.

Court contractors who sell debtor’s information, and financial institutions who sell off bad debts compound this problem.  Unfortunately, bad debt consolidation management has become a multi-billion pound industry.
 
EuroDebt, a questionable debt collection company, has a turnover of £13million.  This company was subject of a BBC TV investigation, which filmed its agents charging customers thousands of pounds and implying they could get their debts reduced or even written off.

A reporter for the Inside Out programme posed as a client with debts of £17,000.  A EuroDebt agent suggested he use his credit card to pay the company’s handling fee of £1,595, something independent debt counsellors consider “appalling and unethical”.

EuroDebt director Kevin Still said: “Under no circumstances would we recommend that anyone take out any additional credit.

“But it wouldn’t be unusual [to ask for postdated cheques] if somebody couldn’t afford to pay the instruction fee in one go, and we do allow a reasonable amount of flexibility in how they go about paying their plans.”

A spokesman for Information Commissioner Richard Thomas, who enforces data protection laws, said: “We will study The Mail on Sunday’s report carefully to consider if there is a case for tighter controls on those who have access to this data.”

Until recently the media only focused on the IVA industry as a whole. Now, they are targeting any company that victimises people who have borrowed too much on personal loans or mortgages.

Posted in Bad Credit, Borrowing, Consumer Credit, Consumer debt, Credit Card, Debt Consolidation, Debt management, Financial news, IVAs, mortgages, Personal debt, Personal loans, UK Finance | No Comments »

Consolidating your credit card debt

Tuesday, May 29th, 2007

These days, you will see a lot of adverts advising you to consolidate your debt. Debt consolidation loans are big business and they have been growing in popularity very quickly over recent years. However, the most important thing of all about these debts is to remember that once you decide to take out a debt consolidation loan to repay the debt, you must on no account use the money for another purpose.

Debt consolidation loans are chiefly a good idea because the interest rate charged on them is a lot lower than what you pay on other debts, such as credit cards. However, you should also remember that they are a lot less flexible. If you take out a debt consolidation loan over a period of say three years, then you should bear in mind that there will be controls and restrictions on repaying the debt early. The likelihood is that the loan will be with you for three years.

It is also very important that you get the very best interest rate possible on the debt consolidation loan. Since the main reason for taking out the loan in the first place is because it has a low interest rate, you should ensure that it is significantly lower than your other short term debts such as credit cards, your over draft and your store cards. By shopping around you can get yourself a much better deal, so do not apply for a loan before taking the time to find the rate that is right for you. Many factors will affect the interest rate that you can get, and if you are a home owner, the rate should be below ten per cent.

Posted in Borrowing, Consumer Credit, Consumer debt, Credit Card, Debt Consolidation, Debt management, Financial products, Homeowner Loans, Homeowners, interest rates, Personal loans, UK Finance | No Comments »

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