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Archive for Missed payments

Bad Credit Home Loan Woes

Thursday, August 28th, 2008

An increasing number of households owned on bad credit mortgages are facing repossession as they make late loan repayments.

According to figures out from Standard & Poor, nearly a quarter of all bad credit home loans are now in arrears – many by as much as 90 days. This is up from 22% in the last quarter surveyed and now officially at a record level.

Comparison website Moneysupermarket have commented that this situation is of course attributable to the credit crunch, as nearly all homeowners have been faced with increased interest rates. For families who were already on a higher than average rate, a price rise can make it impossible for repayments to be met.

Additionally, the tighter lender criteria now in place across the loans market has made it nearly impossible for families to find cheap loans when a fixed rate deal comes to an end.

With fewer loan products on the market and many lenders pulling out of the sub-prime loans market, borrowers are having real difficulty in finding a bad credit loan at a price they can afford.

With reports on an increasing number of repossessions taking place and uncertainty in the jobs market, UK debt charties are bracing themselves for floods of enquiries. As colder weather sets in and fuel requirements rise, more families are likely to be plunged into the cyle of bad debt.

Posted in Bad Credit, Borrowing, Consumer Credit, Consumer debt, Debt Consolidation, Debt management, Financial news, Financial products, Homeowner Loans, Homeowners, House repossession, Housing news, Missed payments, mortgages, Personal loans, Property, Remortgaging, Secured loans, UK Finance, Unsecured loans | 1 Comment »

Crack the Crunch by tackling bad habits

Tuesday, August 26th, 2008

People are making a number of fundamental errors in handling their finance according to Moneyfacts, the comparison website.

It advises people to tackle their bad finance habits in order to stay afloat during these tricky financial times.

One of the worst habits is that of living beyond your means. This fatal flaw is going to see huge numbers of UK adults sinking under unmanageable debt in coming months. People who regularly spend more than their income each month are obviously mounting up debts that they can never tackle. Many of these people will end up using credit cards to pay for basic living costs and then taking out personal loans to clear the credit cards. This is a ticking timebomb, according to MyVesta, the debt solutions provider, and they should know.

Another poor habit is allowing yourself too many credit sources. If you hold a handful of cards each with a limit of thousands there’s always the temptation to splurge. Add to this a number of catalogue accounts or store cards and suddenly all kinds of avenues are open for spending on days when your income is all gone. Moneyfacts strongly recommends paying off the cards or accounts with the highest amount of interest and limiting yourself to only a few once the balances are cleared.

Not being aware of your current financial situation is a big step in the wrong direction. Whilst few people know their exact bank balance, it is always wise to have a handle on your rough debt balance. If you haven’t tallied up all the money you owe in overdrafts, hire purchase, credit cards and loans then you’re burying your head in the sand. By being aware of what you owe you remain in control and can decide which bills need clearing most urgently.

Above all, be aware of missing payments. Many creditors see this as a green light to either slap you with a charge or raise the interest rate on your borrowings. Or both! Whilst borrowing may still be fashionable, there’s no point in spending money unnecessarily. Especially during the credit crunch!

Posted in Borrowing, Budgeting, Consumer Credit, Consumer debt, Credit Card, Debt management, Financial news, interest rates, Missed payments, Overdrafts, Personal debt, Personal loans, Secured loans, Spending, Store cards, UK Finance, Unsecured loans | 1 Comment »

Debt Management Plans on the Up

Friday, August 1st, 2008

TDX Group, the organisation behind the Group Debt Index, claim that there has been a significant rise in the number of debt management plans taken out in recent months.

The Group claim that debt management, such as Individual Voluntary Agreements (IVAs) will rise by a further £5 million by Christmas, growing steadily by year end.

Mark Onyett, chief executive of the TDX Group said: “We’re already seeing far higher numbers of consumers struggling with personal debts and the pressure is set to intensify over the coming months.”

The research showed that an increasing number of people with financial problems are finding it difficult to make repayments on loan and credit card debts.

This accords with research showing the house repossessions are steadily climbing and a rise in people approaching debt charities for advice.

Since the start of the credit crunch many people have tightened their belts, but it simply isn’t enough.

Whilst most families are wise enough not to extend their credit with further personal loans, the increases in the cost of living has pushed many families deeply into debt.

Unfortunately, this Christmas could see many families hard pushed to pay their bills, let alone have the festive season of their dreams.

Posted in Bad Credit, Borrowing, Budgeting, Consumer Credit, Consumer debt, Credit Card, Debt management, Financial news, Financial products, IVAs, Missed payments, Personal debt, Personal loans, Secured loans, Spending, UK Finance, Unsecured loans | No Comments »

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