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Wed 4th Jun, 2008
Posted in Consumer Credit, Personal loans, Homeowner Loans, UK Finance, mortgages, Consumer debt, Homeowners, House buying, Financial products, Property, Financial news, Housing news, Borrowing, Car finance, Car loans, Secured loans, Debt management at 11:59 am by admin
Almost everywhere you go these days you can hear people obsessing over the same big question, which way are house prices going to go?
It should not come as such a big surprise however that almost everyone is so concerned over this one question. First of all with the massive year on year growth that we have seen for the past decade many people were simply assuming that there was no safer investment than in property. At the same time many people genuinely thought that property investment would be a great cushion for retirement. The events of the past few months have really shaken peoples’ confidence in the property market, and have now got everyone asking if property investment is really the way forward.
So are Britons right to be so nervous about the property market now? Judging by what many experts are saying, the answer would seem to be yes. First of all there was the Nationwide Building Society forecasts that house price inflation was going to fall from a current level of 10% all the way down to 0%. That prediction was on the more optimistic side of the scale with other institutions predicting that in one year’s time the price of the average house would actually be 3% lower than it is today and dropping by another 3% in 2009.
However despite these predictions we are probably far more likely to have a drawn out decline in house prices rather than a crash. The country is no doubt in the grip of the credit crunch, but the type of recession seen in the early 90’s is unlikely, according to experts.
Whilst borrowing in the form of home loans and personal credit has become much harder, employment levels have not yet dipped. This means that would-be house buyers and those looking to finance cars or holidays may have trouble getting the cheap loans on offer a few years ago, credit is still available, unlike 15 years ago.
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Fri 28th Sep, 2007
Posted in Consumer Credit, Personal loans, UK Finance, Credit Card, interest rates, Consumer debt, Financial products, Financial news, Borrowing, Car finance, Car loans, Personal debt, Debt management at 12:13 pm by admin
Recently Barclaycard came out with a new credit card called the Barclaycard Breathe, which is a card that claims to offer a greener solution by offering 50% of Breathe profits to be donated to environmental projects dedicated to reducing carbon emissions around the world. Breathe has also claimed to offer a greener customer experience with no paper statement, environment friendly produced credit cards, and a credit card recycling scheme for the old cards. Breathe customer’s will also benefit from discounts such as £50 off British Gas home insulation and other offers. Despite all these benefits, one has to ask whether using a green card is worth it.
The size of the Barclaycard Breathe contribution to the environmental projects depends on the profit levels that are made by Breathe. This means that the further you are in debt the more Breathe will contribute, as profits will be generate by cardholders who rack up their interest payable as they are unable to make more than the minimum monthly repayments. Those who pay off the entire balance on the credit card every month will find that their contribution will be minimal. Although you will be making a contribution by paying off your debt on time, you will find that you can make an even bigger contribution by falling into debt and sinking into the red zone. This is not the ideal solution to help protect the environment. So before selecting a credit card that sounds good, you will want to research the product and ensure that it will be as good as it claims.
Consumers who are prone to debt on their borrowings are wiser to take out cheap loans to cover their expenses and look at other ways of helping the environment. For example, using a ‘green’ credit card to pay for repairs to an old car is not as environementally friendly as taking out a personal loan to buy a more fuel-effiicent model, and yet once interest rates are accounted for, both can cost the consumer the same amount.
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Fri 22nd Jun, 2007
Posted in Bad Credit, Consumer Credit, Personal loans, UK Finance, Credit Card, interest rates, mortgages, Consumer debt, Homeowners, Spending, Property, Unsecured loans, Financial news, Borrowing, Car finance, Car loans, Personal debt, Store cards, Secured loans, Tenant loans at 2:23 pm by admin
The retail industry has taken major hits according to recent reports. The increases in interest rates has many consumers cutting up their credit cards and using cash instead of high interest rate store cards.
Almost 25 per cent of consumers use shopping to relive stress, according to new research from Retail Trust, with the younger generation - 18 to 24-year-olds - favouring retail therapy as a viable solution to stress.
The report states that men are more likely to carry debt than women. Almost 33% of men owe as much as 20% of their current income in debts such as secured loans and hire purchase car agreements. Older men, over 40 carry the most debt including mortgages.
Considering retail and service industry workers as a demographic group revealed a startling trend. Employees in the retail and service sectors have the highest debts, with eight per cent owing more than 71 per cent their annual income. Most of this is in the form of tenant loans and other unsecured borrowing.
Nigel Rothband, chief executive at Retail Trust, highlights these workers as most in need of financial advice and guidance.
“It is estimated that an astonishing one in five people in Britain work in the retail industry and the survey results reinforce the fact that there are a large number of people in need of help and advice,” he told Retail Bulletin.
The government is instigating initiatives to regain control over debt and educate the publish. However, understanding debt is the first step to creating a viable a solution.
Credit Action reports that personal debt was £1,318 billion at the end of March, 2007, with the annual growth rate recording an increase of 10.5 per cent.
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Thu 7th Jun, 2007
Posted in Consumer Credit, Personal loans, UK Finance, interest rates, Spending, Borrowing, Car ownership, Car finance, Car loans, Secured loans, Missed payments at 12:14 pm by admin
Since the beginning of this year thousands of Britons have purchased new cars and it is predicted that about 400,000 more will buy a car this year, with many of them ending up paying too much by using an expensive car loan.
When it comes to purchasing a car, there are many financing options that are available to a consumer. One of the most popular types of finance is the hire purchase, which is a loan that is secured against the car that is being purchased. Often this type of financing is offered by the car dealership, however consumers need to realise that they do not own the car until the total amount of the loan has been paid off; until then the car is owned by the car dealership and can be repossessed should you miss payments and default on the loan. The other downfall to a hire purchase is the fact that it is expensive. Many car dealerships offer 0% interest on a hire purchase, however these deals often require a deposit of as much as 40 percent of the asking price. The average interest rates on a hire purchase schemes are typically in the double digits, whereas a personal loan can be obtained for less than six percent.
Buyers can take out a personal loan to fund the purchase of a new car from another institute, such as their bank or a lender other than the car dealership. With a lower interest rate buyers can save a significant amount of money in terms of how much interest is paid out. Another benefit of applying for a personal loan when purchasing a new car is the fact that you will have the money in place beforehand, giving you the advantage of being able to bargain with the dealer. There are many other forms of financing; it’s just a matter of finding what is right for you.
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Mon 26th Mar, 2007
Posted in Consumer Credit, Personal loans, Debt Consolidation, UK Finance, interest rates, Financial products, Spending, Unsecured loans, Borrowing, Car loans, Secured loans at 10:00 am by admin
There are several reasons why someone may take out a personal loan, such as to purchase a new car, pay for a wedding or holiday, or to consolidate and pay off your debts. Whatever the reason may be, there are a few things to consider before you sign the loan documents.
When you borrow, you must remember that the more money you borrow, the more interest you will pay, so you should only borrow the absolute minimum that you need. You will also need to know that the more time you take to repay your loan, the more you will end up paying on interest, so keep the length on the term of your loan to a minimum.
Many banks will advertise a low annual percentage rate on a personal loan, however be aware that you may not necessary be qualified for this low rate. The interest rate that you receive depends on your personal circumstances, and if you have a poor credit history the lender may charge you a higher interest rate. The APR on a loan is not necessarily the best way to measure what the best loan will be for you. Lenders often find a way to make the APR to appear lower. So the best way to compare loans is to look at the total amount repayable. The total amount repayment on a loan adds up every penny that you are expected to repay which includes all the monthly repayments, fees and charges. The lower the total amount repayable on the loan, the better the deal on the loan.
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Tue 6th Mar, 2007
Posted in Consumer Credit, Personal loans, UK Finance, interest rates, Financial products, Spending, Unsecured loans, Borrowing, Car ownership, Car finance, Car loans, Secured loans at 10:26 am by admin
A new car can become an expensive purchase if you choose the wrong car loan. Often many people end up choosing finance plans that are offered by car dealerships because they are not aware that they can obtain a loan elsewhere. Financing through a car dealership is not the best choice as they often charge high rates of interest and really only bear in mind the commission that they will be making off of you. Don’t be fooled into believing that a loan through a car dealer is your only option. Look into financing through an independent car loan specialist, as you are more likely to be offered a low interest rate and a repayment plan spread over a period of time that you choose. It is worth searching around for the best loan on the market.
With car loans, there are two types; a specialist car loan and a regular personal loan. A specialist car loan is where the amount of the loan is secured against the car instead of your house. Where as a regular personal loan is unsecured and requires security against the amount borrowed. Typically a specialist car loan offers borrowers a lower interest rate, because the lenders have security for their investment, whereas they have none on an unsecured personal loan.
The repayments on a car loan really depend on the repayment plan that you and the lender decide upon, the length of time you wish to pay back the loan, and also the interest rate on the loan. When you are shopping around for a car loan, ask lenders what type of loan you can qualify for and what loan would be best for you. You want to compare the interest rate, and the benefits that the lenders offer you. By shopping around and comparing various types of car loans, you will be able to find a loan that is right for you and your personal circumstances. By searching for financing through various companies, either online or with a bank, you won’t end up being suckered into financing through a car dealership. Comparing and finding other financing routes will pay off.
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Fri 2nd Mar, 2007
Posted in Bad Credit, Consumer Credit, Personal loans, Debt Consolidation, Homeowner Loans, Banking, UK Finance, Credit Card, Remortgaging, Consumer debt, Homeowners, Financial products, Spending, Credit record, Unsecured loans, Financial news, Borrowing, Car loans, Personal debt, Secured loans, Debt management at 10:05 am by admin
While many people are learning how to manage their debts, analysts are not attributing the current drop in credit card spending on consumer responsibility, but lender caution.
The lenders have stopped issuing credit cards, with limits in the thousands, as wedding favours, and slowing down their handing out cards to students.
Barclays said, “the number of customers missing a payment is falling.” What isn’t highlighted as strongly is the fact that the number of customers is also falling - down 1.4 million to 9.8 million.
The problem with credit card borrowing is that consumers no longer see them as short-term, or an emergency loan, but as a type of lifestyle or working overdraft, or a long term loan. People are now using credit cards to make purchases that would have been made on a personal loan in the past like a car, home renovations, or a vacation.
There are reports that indicated that consumers are now turning to personal loans for their lifestyle spending. In the past, securing money against your home was for the desperate, or entrepreneurs without access to a less precarious source of funding. And, remortgaging for the purpose of consolidating a debt was unheard of.
But nowadays, consumers have remortgaged their homes to fund frivolous purchases, debt consolidation and holidays.
The banks have felt the impact of the sub-prime credit card market, and acted accordingly. They blocked access to those who are unable to repay their debts. Many see this as the banks hiding their heads in the sand, solving one bad debt problem by allowing consumers to borrow from other venues to feed their bad spending habits.
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Tue 6th Feb, 2007
Posted in Bad Credit, Consumer Credit, Personal loans, Homeowner Loans, UK Finance, Credit Card, interest rates, Consumer debt, Financial products, Unsecured loans, Borrowing, Car finance, Car loans, Secured loans at 10:28 am by admin
It has become so easy these days to qualify for a loan, even with no credit or bad credit. Most people take out personal loans to pay for various things. Borrowing anywhere from one thousand to thirty thousand pounds, personal loans should be well considered before borrowing.
There are many reasons people take out personal loans. Some borrowers will take out a personal loan to consolidate other more expensive debts on credit cards or bank overdrafts. Others may borrow the money to purchase a new car, or use the money for a wedding. Whatever the reason may be to take out a personal loan, you always want to ensure that you are getting the best APR (Annual Percentage Rate) available by shopping around to various lenders.
Whether you borrow twenty thousand for a new car, fifteen thousand for a wedding, or ten thousand to pay off other debts, you must look at the rates of interest. Typically, the more you borrow, the cheaper the interest rate. If you take out a personal loan for a small amount of money you may end up paying a higher interest. Often if the amount borrowed is well under three thousand, you may want to consider charging your purchase on a credit card with a lower interest rate. You will want to look at all your options, and definitely shop around for the best personal loan rate. Your bank may be your first option, however looking online can be a very wise choice as you will have more lending services available and it will also be easier to compare prices with a click of the button.
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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.
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Thu 18th Jan, 2007
Posted in Consumer Credit, Personal loans, UK Finance, Credit Card, interest rates, Student debt, Financial products, Unsecured loans, Borrowing, Car loans, Personal debt at 10:10 am by admin
If you are a student or about to become one, you may be surprised at the differences in debt that students generally incur when compared to non-student borrowers. Students are currently one of the most indebted segments of the lending market and this trend is only increasing as students continue to borrow more and more money each year.
For most students in the UK, the majority of their debt is in the form of government loans provided by the student loan company. This is a very generous scheme that offers preferential interest rates of well below the current base rate. Therefore, accepting student debts is far more preferable than taking loans from any commercial sources. You will also have an easier time repaying your student loans as the government only expects to be repaid once you start working and are earning above a certain amount. They will then take the repayments directly from your pay check depending on how much you earn.
As well as government loans however, virtually all students have many other forms of debt. Virtually all of the main high street banks offer interest free overdrafts to students. These can run up to several thousand pounds and the banks are only interested in seeing these overdrafts paid off once you graduate. Therefore, students tend to rack these up pretty quickly.
Credit cards, car loans and personal loans are also a significant source of student debt with many lenders more than willing to lend to students on the basis of their future expected earnings.
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