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Tue 4th Dec, 2007
Posted in Consumer Credit, Personal loans, Homeowner Loans, UK Finance, mortgages, Remortgaging, Student debt, Financial products, Spending, Property, Borrowing, Equity release, Secured loans, Rental property, Home Improvements at 1:01 pm by admin
It is amazing how many parents invest tens of thousands of pounds into their student’s education without ever thinking about their living arrangements. In fact, many students are left to scramble for whatever they can afford, and decorate with left over pieces and junk.
Our environments play a vital role in our emotional wellbeing. Most parents know this. The concept of borrowing a secured loan, or a mortgage, to redo a teen’s room, a den for entertaining, or the basement, makes common sense. But, parents rarely see the importance of treating a dorm with the same respect and concern.
Students need a place to unwind and relax, but it must also be an individual statement that lets them continue to grow emotionally, amid the confliction and confusion of a dorm, or student housing.
Student housing décor goes far beyond picking a wall colour and a couch. Many parents are shocked to realise that student housing often lacks a respectable bathroom. Adding a pure water dispenser, a new toilet seat, and fixing the window coverings can be expensive, but they are vital to a student’s well being.
A secured loan is the best way to do this. It frees enough money to do the job right, in the least amount of time. And, it can be paid back quickly, without high fees and penalties, depending on whether the property was leased for one year or longer.
A property that is leased for more than one year offers the parents some leveraging. They may be allowed to upgrade the bathroom, add a heating unit, and improve elements which would be the landlord’s responsibility if the housing was a permanent residence.
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Wed 21st Nov, 2007
Posted in Bad Credit, Consumer Credit, Personal loans, Debt Consolidation, UK Finance, Credit Card, interest rates, Consumer debt, Student debt, Unsecured loans, Borrowing, Personal debt, Debt management, Budgeting at 1:52 pm by admin
One of the most expensive times of year for the parents of teens is August. Back to School means arguments about the difference between a good outfit, and an in-style outfit. The difference can be £500.
Adding books, tuitions, bus passes, sports, after school events and social outings can cost more than one month’s income. Few people have enough money to cover a student’s entire list of wants and needs. This problem is compounded when a family is trying to send two or three teenagers to school at the same time.
Many students earn their own money to help cover school costs. But parents need to be aware that others apply for credit cards as a form of unsecured loan without their parent’s knowledge.
Banks actively recruit students. Many students believe this is free money, a perk. They run up the limit, and then accumulate interest for months, before parents learn of the debt.
A student can easily run up an unsecured debt of £5,000 in a matter of weeks. This debt can haunt parents for years, and ruin a student’s consumer credit information report. Parents need to inform their children about the responsibilities and risks of a credit card, before the students are forced to take out a second mortgage or debt consolidation loans to pay their children’s debt.
Back to school is a great time to teach children that fashion does not define a person. It will not make them popular, but it could put them in debt. There is no reason why a student cannot be taught about APR and interest rates, debt management on mortgages and loans, and of course responsibility.
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Tue 23rd Oct, 2007
Posted in Bad Credit, Consumer Credit, UK Finance, Consumer debt, Student debt, Borrowing, Personal debt, Debt management, Budgeting at 11:30 am by admin
Almost every student starts their school year with enough money to last the year. This money is usually borrowed. However, once students start the school year they forget how to budget, and that they must carry this debt for years.
Any bar in a university district will tell about friends who buy expensive rounds of drinks for all their friends, or shops who see the same students day after day buying clothes or shoes.
New friends, and peer pressure can make the most level-headed student careless with their money. Many students feel the pinch because they need friends. They need to recreate the network that helped them survive school.
Others are stepping out for the first time. Faced with the responsibility of being an adult, and the excitement of being independent for the first time, may young adults go punch-drunk.
This lasts for a month or two, then the reality hits. They look at their budget and realize that they won’t survive until spring unless they tighten their belts.
Student loans can take decades to repay. They can make it difficult to apply for a mortgage, own a home, and in some cases, many young adults claim that their student loans are preventing them from starting a family.
The best debt management program is a strong budget. The next is avoiding peer pressure and staying away from social situations where you may be encouraged to spend money, or to treat a whole table of friends.
Remember, it is possible to end the school year without acquiring more debt, or needing to ask your parents to take out a mortgage.
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Wed 29th Aug, 2007
Posted in Consumer Credit, Personal loans, Homeowner Loans, UK Finance, interest rates, mortgages, Consumer debt, Student debt, Homeowners, House buying, Financial products, First time buyers, Spending, Property, Financial news, Housing news, Borrowing, Personal debt, Secured loans, Debt management at 12:53 pm by admin
Two million people will borrow mortgages that total four times their salaries to get on the property ladder, according to a survey of 2,200 adults, by mform.co.uk. They believe that 2 million individuals aged 34 or under will borrow four times their salaries.
Another 828,000 recipients will borrow over five times their income, while 290,000 will borrow over six times.
Francis Ghiloni, of mform.co.uk, says this is not good for some
“Around 36% of people aged 24 or under who intend to take out a mortgage over the next three years claim that they have will to borrow more than four times their salary,” he says.
“As property prices continue to rise and wage inflation fails to keep in line with this, many young people looking to get on to the property ladder will have to take on huge debt.
“Many will have interest only mortgages because they will not be able to afford to repay the capital they have borrowed, and they will be heavily exposed to any falls in property prices and increases in interest rates.”
That 56% of these home loan borrowers will be aged 34 or under compounds the younger generation’s debt burden, making it harder for them to pay their debts. Many of these will have students loans and other debts outstanding when they purchase their property.
This will become even more dangerous in the future as these people release equity from their home, increasing their risk rate, and the interest rates paid on subsequent mortgages.
Consumers are warned to carefully research their financial products before signing on the dotted line, especially on products that reduce their chances of borrowing in the future.
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Thu 9th Aug, 2007
Posted in Bad Credit, Consumer Credit, Personal loans, Banking, UK Finance, interest rates, Consumer debt, Student debt, Inflation, Homeowners, Property, Financial news, Borrowing, Personal debt, Secured loans, Debt management at 12:14 pm by admin
The financial community is always buzzing after the Bank of England’s monetary committee increases the interest rates. The analysts fall into two categories, those pro the move and those against. Most of the watchdogs belong to the ‘against’ category, claiming that the burden to societies’ vulnerable - the elderly, single parents, and low income categories - is far too high a price to pay to keep the cost of living down for the rich manufacturing industries.
However, many economists cite this as a necessary evil, claiming that the economy needs to follow international trends to keep the standard of living high.
The UK has enjoyed a decade of growth and strength on the global market. Some analysts believe that the economy is simply rebalancing. Others believe that the UK economy, and its unique form of capitalism, cannot be forced into standard patterns.
This view is echoed by economists who point to the fact that 50% of the country can repay their loans – excluding mortgages - within a year. The UK holds more personal debt than other European countries. However, much of the personal loan debt held in the UK is secured against property.
While there are dozens of factors that can be quoted for this anomaly, it has become a standard some economists are using to prove the Bank of England is acting irrationally when it repeatedly increases the base rate, especially as the preceding four increases did little to lower the inflation rate, but have done substantial damage to the average consumer’s budget.
As commentators express worries about future profit warnings from lenders, rising mortgage default rates, and increasing debt levels among students, many economists expect the Monetary Policy Committee (MPC) to halt rates until members can assess the impact of previous rate rises.
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Wed 30th May, 2007
Posted in Consumer Credit, Personal loans, Banking, UK Finance, interest rates, Consumer debt, Student debt, Financial products, Spending, Unsecured loans, Borrowing, Secured loans at 10:28 am by admin
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.
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Tue 1st May, 2007
Posted in Consumer Credit, UK Finance, Consumer debt, Student debt, Spending, Borrowing, Personal debt, Debt management at 12:46 pm by admin
Debt is an issue for any student that is attending university. It has been shown that on average a student leaves their studies behind with a debt of over £10,000. This debt could mean that the student will spend years paying it off, leaving students to worry about their financial situation after graduation more than where they will go and study. If, however, you prepare and learn to manage your finances before university, or while studying, you can focus your attention towards your studies more than the debt you will have to pay off after graduation.
Pre-preparing a budget is important, as it will help you to gain control of your finances. As you are budgeting, you will want to take every expense into account, you will want to include your rent, bills, books, food, entertainment expenses, as well as other expenses such as class trips a mobile phone, transportation to classes, as well as printing or photo-copying. By learning to budget properly while you are university will not only help you get through your finances, but it will also help you prepare for your financial future.
As you are considering how much you will need during your studies, there are a few things to consider, such as how much you will receive during the term whether it be from your parents, a part-time job, or a student loan. You will also want to include term expenses such as rent, books, clothes, as well as any additional expenses, and you will want to calculate your weekly expenses such as food, bills, entertainment costs, an more. You will want to add up your term expenses as well as your weekly expenses and deduct that from your income. If your expenses exceed your income, then you will need to cut down on unnecessary costs.
Although budgeting can be a bit of a struggle to stick with, it will be worth it in the long run. If you keep a goal in mind that will help you stick to the budget and achieve financial freedom after graduation, you will succeed.
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Tue 6th Mar, 2007
Posted in Bad Credit, Consumer Credit, Personal loans, UK Finance, Credit Card, Consumer debt, Student debt, House buying, Spending, Property, Financial news, Borrowing, Personal debt, Debt management at 10:31 am by admin
The government has instigated a program to start teaching financial management in schools as soon as 2008, but this is too little, too late, for students who are in high school now.
A report released by the Personal Finance Education Group, a financial education charity, said that most teenagers have developed a troubling laid-back attitude toward debt. According to their figures, more than half have borrowed money before they reach 17 years old.
An alarmingly high number of teens believe that credit is a method of spending beyond their means. Their attitude is that a credit card is something you use to buy whatever you want and leave your parents to settle up when the bill comes in. Like a perpetual advance on their allowance.
Unfortunately, this attitude is being carried into their adult life.
David Bennett, formerly the head of a large high school in the north of England, believes that schools must play a vital role in teaching students how to manage money.
“All aspects of money management should be taught, from making the best use of pocket money up to obtaining a mortgage and maintaining the payments on a loan,” he says.
“Some of the older ones were interested in such matters as getting their own place, a flat to live in. They wanted to know how much it would cost to be independent, running their own affairs.”
David adds “Financial literacy can be taught anywhere but it is best to teach it formally in school.”
Students need to be taught that £250,000 borrowed over 50 years could result in a repayment of £750,000, an amount that will take more than a lifetime to repay.
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Wed 21st Feb, 2007
Posted in Consumer Credit, UK Finance, interest rates, Savings, Student debt, Homeowners, Spending, Property, Financial news, Borrowing, Car ownership, Car finance, Personal debt at 1:27 pm by admin
The basic cost of living expands far beyond interest rates, council taxes, and increasing utility bills. The cost of living is impacted by life choices and decisions consumers make.
One group of consumers who are hit hardest is divorced and single parents. This consumer group needs to survive without a dual income, but they also need to absorb the cost of the divorce. Norwich Union’s “Cost of Divorce” survey reveals that couples spend £28,000 to divorce, twice that of 2003.
Another cost that has increased dramatically is the cost of driving. The average car now costs £5,539 a year to run, equivalent to £15 a day. This is spurred by an increase in fuel costs. However, it is also increased by consumer’s desire for better automobiles.
Several reports published last year stated that new graduates are discouraged at the cost of living. Many claim that they will not be able to afford to buy a home, or start a family, for at least a decade because of their student loans.
The cost of raising a child from birth to 21 years old is £180,137, or £23.50 per day. The cost of raising a child rose 9 per cent last year alone, according to research from Liverpool Victoria.
Not all increases in the cost of living are necessity based. Britons are now spending more on eating in restaurants, pubs and on takeaway meals than on buying fresh and processed food and drink products to have at home. This has increased their food bills substantially.
The average wedding will now cost £19,595.This is a major blow for the 45 per cent of couples, approximately 117,000, who claim they have no financial planning to pay for their wedding, according to stockbrokers Brewin Dolphin Securities’ research.
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Tue 20th Feb, 2007
Posted in Consumer Credit, UK Finance, Student debt, Financial products, Borrowing, Personal debt at 10:48 am by admin
Some of us may wonder what a student credit card is and what purpose and benefits it serves. Student credit cards are generally offered to students who are in University or going to school. With lower interest rates and benefits, a student credit card can be beneficial for many students.
Student credit cards are aimed at students because these credit card companies realize that students have no credit history and will find it hard to obtain cards, so they offer these credit cards to students. Because the individual is attending school, they are demonstrating to the credit card company a certain level of responsibility, giving the company a sense of reassurance that the student is looking to the future and will be responsible enough for taking care of debts.
Generally a student credit card is marketed toward University or college students, however anyone can apply for one of these cards. Often, though, companies will require you to provide the name of the University the student is attending as well as any form of verification that they are in fact a student.
Often the interest rates on these student credit cards can be quite high. If the student does not have a credit history the interest can be quite high, however interest rates on student cards are lower than most card offers for those with no credit history. However, there are some cards available that offer reward programs that can be beneficial to some students.
Student credit cards are a great way to help young adults to start a credit history and to learn the responsibilities of managing debt. The card will also help the student through their schooling, allowing students to pay for supplies, books, and other big expenses. If you are a student, a student credit card is worth considering.
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