Posts Tagged ‘loan’

Repossession numbers could increase

Friday, May 13th, 2011

Over the past year or so repossession numbers have been declining, which has come as good news for homeowners and for the property industry as a whole. However, according to recent reports repossession numbers are on the rise again after it was revealed that 9,100 properties had been taken back by lenders in the three months leading to the end of March.

Between the last quarter of 2009 and the first quarter of this year repossession numbers had been falling each quarter according to figures, but the first quarter of this year saw an increase of 15 percent in repossession numbers. The Council of Mortgage Lenders has predicted that repossession numbers will continue to rise this year, adding that the figure could go as high as 40,000 repossessions or more over the course of the year.

The low base interest rate is, at present, helping some families to cope with repayments on their mortgages, as it has resulted in their repayments being lower. However, if the base rate increases this could results in an even higher number of repossessions this year, with more people unable to keep up with their mortgage repayments. Officials have put the financial difficulties that consumers are facing down to a range of different factors, such as the government’s austerity drive, the soaring cost of living, a freeze on wages, and higher taxes.

A CML official said: ‘Looking ahead, the financial position of many households is likely to be stretched for some while, and some will inevitably find themselves in difficulty. Lenders have a range of options to nurse borrowers through temporary problems, but will clearly need to be mindful of the regulator’s concern that too much forbearance may be as bad as too little.’

Tags: rate, regulator, recent, cost, higher number

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Personal insolvencies set to increase

Thursday, February 10th, 2011

The level of personal debt in the UK has become an increasing concern, especially given the difficult financial and economic climate that so many people are facing at the moment. Increased living costs, a rise in VAT, higher risk of job losses, and government welfare cuts have left many people struggling with their everyday living costs.

The Insolvency Service recently released figures showing that although there was a drop in personal insolvency levels in the final three months of last year the number of insolvencies over the course of the year rocketed to record levels last year. The bad news is that officials believe that the number of insolvencies could rocket even higher over the course of this year.

Figures have shown that a huge number of people are now finding it difficult to make their money stretch to the end of the month when they next get paid, with many running short around two thirds into the month. This means that for one third of the period many people are relying on credit to get them through, and this is resulting in credit card balances, overdrafts, and loan debt spiralling out of control.

It has even been claimed by the Citizen’s Advice Bureau that problems with money have resulted in the increased number of cases of depression and mental illness.

Figures show that there were over 135,000 personal insolvencies last year, and this could increase to in excess of 150,000 this year.

One industry official said: “Unfortunately, it’s only going to get tougher as the government’s austerity measures are only just beginning to be felt in people’s wallets. I doubt that when the coalition government came to power last May, it envisaged that its austerity measures would result in such a startling increase in the cost of living. These spiralling costs, coupled with worldwide commodity shortage and conflicts in the Middle East pushing up oil prices, means that the future doesn’t feel that bright! We have at least begun pay back our debts, some £24 billion in the last 12 months but again this is marred when you consider that banks have written off nearly £10 billion of our debt over the same period.”

Tags: personal insolvencies, Insolvency Service, government, control, loan, Service

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Brits regret not paying off more debt last year

Monday, January 10th, 2011

A recent survey was carried out the results of which showed that many Brits were regretting not paying off more of their debt last year. According to the survey, which was carried out by Internet banking giant First Direct, which is part of the HSBC group, around 53 percent of those polled as part of the survey said that their biggest financial regret of 2010 was not paying off more of their debt earlier.

The survey involved polling around one thousand adults in the UK, and 82 percent of them said that the area of their finances that they were most concerned and unhappy about last year was their loans and credit cards. There are fears that whilst debt has become a major problem for many people over the past couple of years the situation could get worse as a result of government cutbacks and further job losses, which are due to take place this year.

Many people may have made New Year’s resolutions this year to get their debts sorted out, and for those people it is important to take action as soon as possible rather than putting things off again as they may have done last year. Consumers can look at consolidation of their various debts with a low cost consolidation loan, particularly given that loans of £7500-£15000 are said to have come down in terms of interest rates as a price war breaks out amongst lenders.

One official said: “The New Year is the ideal time to reflect on your financial habits and change these for the better. The earlier people start to plan their finances and look to the future, the easier they will find their long term financial position.”

Tags: United Kingdom, GBP, situation, financial habits, loan, couple

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Consumers advised to shop around for loans

Tuesday, December 7th, 2010

At this time of year many people may end up looking for a loan, with some wanting a loan in order to fund Christmas purchases, others looking to consolidate their debts with a loan, and some simply looking to get a loan to make payment for a one off purchase either before the VAT increase kicks in or when the sales start.

One consumer campaign group, Which?, has stated that consumers should make sure that they shop around in order to get the best deal on a loan, adding that heading to their bank may not necessarily be the right option, as they could end up paying way over the odds by asking to borrow money from their bank.

In fact, the group suggested that it might be advisable for consumers to head to the local supermarket in order to get a competitive unsecured loan, as this could work out cheaper in terms of both repayments and overall interest. Many supermarkets now offer personal loans, and have appeared on a number of best buy tables when it comes to value for money on borrowing.

Figures show that the rates of interest being charged on personal loans from a range of High Street lenders are far higher than the rates being charged by some of the supermarket giants, including Tesco and Sainsbury’s. The consumer group also said that consumers could get cheaper rates with larger loans, and could benefit from recent drops in personal loan interest rates, which could save them more money.

One official from Which? said: ‘It seems perverse that consumers are offered a better rate the more debt they take on, but that unfortunately is the way the market works. If you’re planning to borrow smaller amounts, it’s worth considering the alternatives, including credit cards, in-store interest-free credit, credit unions or peer-to-peer lending sites such as Zopa.’

Tags: local supermarket, payment, Person-to-person lending, odds, loan, best deal, rates

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Many seeking debt advice go online

Wednesday, November 17th, 2010

It has been revealed in a recent report that a rising number of people that are struggling with their finances and finding it difficult to cope with debt are turning to the Internet to get advice. Personal debt has become a huge problem over recent years, and there are now a number of debt advice charities and groups that consumers in debt can go to for advice and assistance.

However, the rising number of people with debt worries has seen demand for these services rocket, and the waiting times have become increasingly longer for those that need help. However, for those with access to the internet invaluable advice is often at their fingertips, and more people now seem to be realising that they can find the answer to their problems on the Internet.

A recent survey has suggested that the Internet has become the most popular source of information for those that have personal debt problems. The survey was carried out and released by Trust-Deed.co.uk, and suggests that many people go online to learn more about solutions to their debt problems.

The survey results said that 42 percent of respondents said that they had first heard of trusts deeds via the Internet, with 22 percent stating that they had been told about these solutions from a debt advisor, and 19 percent hearing about them from friends or family. Just 10 percent had heard about them from media sources such as radio, television, and print.

One debt expert said: “People with a debt problem are often embarrassed and afraid. The internet allows them to get access to information and support while remaining anonymous. People can research their options on the web and get advice through debt forums without actually have to admit to anyone that they have a debt problem. This is a very important first step.”

Tags: debt advice charities, Government debt, radio television, rocket, debt expert, loan, recent report

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Is a fixed rate mortgage a good idea?

Monday, November 1st, 2010

When it comes to getting a mortgage it is important for homeowners to decide which is the best choice for them based on their finances and their financial security. A fixed rate mortgage is a popular choice amongst many people, and one of the main reasons why people choose these mortgages is because of the increased financial stability that they offer.

With a fixed rate mortgage borrowers are able to fix their rate for a specified period of time such as two, three, or five years. For the duration of that time the interest rate on the loan remains static no matter what happens with the base interest rate set by the Bank of England. Whilst this is not so good if the base rate is falling, because those with fixed rate could end up paying more than those on variable rates, it can be very reassuring when the base rate is on the rise, as it enables the homeowner to avoid spiralling mortgage repayments.

A fixed rate mortgage is ideal for those that want financial stability in their lives, which is something that it particularly important these days in the current financial climate. With fixed rate mortgages the repayments on the mortgage will not change for the period over which the rate is fixed, so households can budget far more effectively without the worry of changes and fluctuation.

The current base interest rate is now at its lowest in the history of the Bank of England, standing at just 0.5 percent, which is where it has been for well over a year and a half. As a result of this many people that have taken out mortgages have opted for variable rates because of the low rate deals available. However, there is now speculation that the base rate will have to increase soon in order to keep a lid on inflation, and this means that those on variable rate mortgages will see their repayments increase.

With this in mind anyone that is looking to take a mortgage out now may benefit from opting for a fixed rate mortgage, as this will offer protection against sudden repayment increases that could stem from the base rate rising. Some of the banks are currently offering some great deals on fixed rate mortgages, making them seem even more appealing for those that want to have the financial stability of static repayments.

 

Tags: specified period, getting a mortgage, budget, loan, stability, rate mortgage borrowers, Bank

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Loans for financially excluded made available through new scheme

Thursday, September 23rd, 2010

A new government backed scheme has been launched to offer small loans to financially excluded consumers who cannot get finance through traditional means. It is hoped that the new scheme, which has been launched by the National Housing Federation, will reduce the number of people that are turning to unscrupulous and unregulated loan sharks in order to get finance.

The scheme, which is being piloted in the West Midlands for now, is called My Home Finance, and has been launched in conjunction with the Department for Work and Pensions. Under the new scheme eligible consumers will be able to borrow sums of up to around £500, and will then make weekly repayments to clear the debt.

Before being approved for the loan consumers will have to take part in a forty five minute interview, and this will enable officials to determine whether the person will be able to repay the loan. However, whilst the scheme could help the financially excluded to avoid loan sharks the rate of interest being charged on the loans is higher than the maximum charged by credit unions.

The interest on these loans will start at 29.9 percent APR. However, after the initial period it will rise to 49.9 percent APR. That said, the service could still prove invaluable for many. My Home Finance will also offer consumers financial and debt advice, which is another service that will prove invaluable to many people.

David Orr, chief executive of the National Housing Federation, said: “My Home Finance will provide an affordable, convenient and trusted option for people on lower incomes looking to build up their savings and borrow modest sums.” He added: “By offering fair loans at fair prices, we hope to offer an alternative to both loan sharks, who cynically prey on hard up families, and doorstep lenders, who are all too willing to lend cash to the desperate at hugely inflated rates of interest.”

Tags: loan, Personal finance, credit, debt

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Consumers should shop around for personal loans

Wednesday, September 8th, 2010

Officials from a financial group have recently reiterated the importance of shopping around for the best deals for consumers who are looking to take out a personal loan. The advice comes from Sainsbury’s Finance, with officials from the firm stating that consumers could potentially save a small fortune by taking the time to shop around for personal loans rather than going for the first loan they come across.

Personal loan rates are said to have been rising recently despite the fact that the base interest rate is at an all time low of just 0.5 percent, and this is particularly true for smaller personal loans of less than £5000. Some consumers may find therefore that they are better off going for a slightly larger loan and paying less interest than a smaller loan that comes with a higher rate of interest.

With interest rates on personal loans on the rise it has become all the more important for consumers to compare the different rates and terms on loans from a range of providers before making a decision or commitment. Steven Baillie, head of loans at Sainsbury’s Finance, said that consumers looking for a loan of around £10,000 could potentially save a massive £1000 by shopping around.

He said that many people were paying over the odds for a personal loan even though they didn’t have to, and that by shopping around they could have saved a fortune on their overall cost of borrowing. With Sainsbury’s consumers are able to apply for a personal loan of between £7500 and £14999 with a typical APR of 7.8 percent.

Baillie said: “Ultimately, you must make sure you’re getting the best possible rate for your requirements and not paying over the odds, because you don’t have to.”

Tags: Interest, credit, loan, Sainsbury's, finance

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A third of Brits will lend to friends

Tuesday, August 31st, 2010

In the current financial climate there are many people that may be struggling to get any sort of finance such as an overdraft, loan, credit card, and the like, and for many of these people the only option left available is to turn to a family member or friend to borrow money if the need arises.

However, the concern for friends and family members when it comes to lending money is whether they will ever see it again, as the pressure for a person to repay someone that they are close to is obviously nowhere near as great as if they borrow the money that they need from a lender.

Recent research has shown that one in three Brits would be prepared to lend money to a friend that was in financial need, but many are convinced that they will never see the money again. Around 32 percent of those responding to the survey said that they would give their friends a loan, with the typical loan amount being around £40. However, many of them said that they did not think that they would see their money returned to them.

Around 35 percent of respondents to the survey said that they knew that they would have to keep reminding their friends if they wanted the money to be repaid, and a further 25 percent said that they would be too embarrassed to ask their friends for the money back and would therefore end up writing the debt off.

The survey also showed that 70 percent of those that had lent money to friends had to wait at least two weeks before they got the money back, and 4 percent had ended up waiting for more than a year to be repaid. Another 18 percent said that they would not see their money again. Around 7 percent of respondents said that they had decided that they would never lend money to friends.

Tags: friends, debt, finance, loan

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Grieving families hounded over loans

Thursday, August 26th, 2010

It has been reported that some loan firms have been housing grieving families in the UK for repayment of the debts of their deceased loved ones. According to reports some families are not even being given the chance to sort out the estates of their loved ones before they find themselves being hounded by banks and loan companies.

Accusations have now been made that some banks and loan companies are acting greedily and selfishly by pestering the families of those that have died and who are already struggling to cope financially with their loved ones gone. Officials from the Consumer Credit Counselling Service have said that the number of calls being received in relation to these incidents has increased.

The CCCS said that it was difficult enough for people to cope with the loss of a loved one, but having to deal with their debts and with persistent lenders made the situation even worse for many. The charity said that this particularly affected those who had lost loved ones who were main income earners or whose incomes had been used to cover repayments on the debts.

Problems often arise because some people fail to realise that if they sign a joint loan agreement they are responsible for the repayments in the event that the joint applicant dies. This is something that applies to mortgage loans, loans, rental agreements, and other forms of finance agreements.

One solicitors firm, Silverman Sherliker, said: “It’s not appropriate for creditors to harass bereaved family members as all inquiries relating to a deceased affairs ought to be directed to the executors or personal representatives, who are often a firm of solicitors.”

The CCCS said: “Bereavement is difficult enough, but finding you have to deal with debt makes it that much harder. This is particularly so for those that have lost a partner or spouse whose income was used to maintain the repayments.”

Tags: banks, bereaved, debt, loan

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Lending to businesses down due to banks

Tuesday, August 17th, 2010

Since the onset o the global financial crisis small and medium sized businesses have really struggled to get access to finance from banks, and this has caused a great deal of concern amongst many officials, including the government, with regards to how the economy can improve if businesses are not able to get the finance that they need.

It has been suggested in the past that the reason behind lower lending levels to businesses was a mixture of lending restrictions on the part of banks and weak demand from businesses, which were said to be wary about taking on finance in the current financial climate. However, one group of industry officials has said that weak demand is not the reason behind the low levels of lending to businesses, and that this is largely down to banks.

The claim was made by members of the Telegraph’s group for owner-managers, who have claimed that amongst banking frontline staff there have been inconsistent lending decisions, more security demands, higher charges on overdraft facilities, and a general lack of knowledge when it comes to business lending.

The owner of an estate agency said: “I almost believe them when they say there is no demand but it probably has a lot to do with the terms they want to lend on.”

Another business official explained how her business loan request was handled, stating: “It all started out well, with ‘can’t see it will be a problem’ kind of statements, which slowly deteriorated to silence; then not bothering to return my calls; to a ‘no’ decision; to treating me like something that had dropped off the end of their shoe. And absolutely no explanation of why or how their position had changed.”

Tags: finance, Business_Finance, buainess, Bank, loan

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Payday loans been helping struggling workers

Saturday, July 31st, 2010

The recent financial crisis has left many people struggling financially, and whilst those that are short of money would normally have relied on an increased overdraft or credit card to tide them over financially in the event that they ran short of cash or had emergency bills this is no longer an option for some people due to tighter credit conditions.

The tighter credit conditions that have come into place have caused a real problem for some people, particularly those that have no savings to fall back on if the need arises. However, for those that are working there is another option available in the form of payday loans, which are designed to provide a short term financial lifeline to those that need small loans on a short term basis.

Often people are hit with unexpected bills, emergency repairs, and other unexpected costs before their payday comes around again, and this can create a problem if they do not have the available funds to pay. With a payday loan workers are able to borrow relatively small sums of money to tide them over until payday comes around, which can be a real lifeline for those that would otherwise be stuck.

There has been some bad press about payday loans over the past couple of years, mainly connected to the interest rates charged. However, consumers are reminded that the loans are only very short term ones and therefore the amount of interest that is actually paid is not a huge amount in most cases.

One consumer said: “I’ve had to use payday loans on a few occasions when I’ve run short of cash and they have been really useful. I don’t have savings or family to borrow money off, and when emergencies come up like essential car repairs I would be stuck without facilities like this.”

Tags: credit, payday loan, loan, Interest

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Payday loans – friend or foe?

Tuesday, July 6th, 2010

Payday lenders have received a lot of bad press over recent years over the level of interest that they charge on their short terms loans for borrowers that are looking for money to tide them over for a short period of time. With many payday lenders the APR charges can indeed be very high, which can instantly put some people off. However, there are also a number of benefits to these loans, which could make them useful for some people.

Whilst the APR on payday loans can be high it is important to remember that the loans are designed to be used over a very short term such as several weeks. As the name of the loan implies this type of loan is meant to be taken on a short term basis to tide borrowers over until payday, and this means that borrowers will not really end up paying that much for their borrowing.

Payday loans can prove ideal for those that find themselves short of money one month or have unexpected bills or emergencies arise for which they do not have the funds. These loans are not designed to be used on a regular basis in the same way as many people use their overdrafts every month, as otherwise they will prove costly. However, as a one off or for occasional use they often provide an effective solution for those in short term financial need.

Another thing to bear in mind with payday loans is that there is usually no credit check required, so those with damaged credit will not have to worry. However, borrowers will need to prove their income, personal details, and employment details, as these loans are only available to those that are working and can therefore repay the loan when they get paid.

The upper limits on payday loans can vary depending on the lender and on the income of the borrower. Generally payday loans are for a limited amount of money, with upper limits generally tending to be around £1000 with many lenders. However, this is something that borrowers should check when looking at which payday lender to go through.

For those that need finance on a long term basis a personal loan or credit card is the best option, but for those that just need to bridge the gap until payday comes around again payday loans can prove to be a good choice.

Tags: loan, Personal finance, credit, finance, payday loan

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Businesses need to show future plans to get finance

Tuesday, July 6th, 2010

Over the past few years many small and medium sized businesses in the UK have struggled to get loans and finance from banks, and in the same way as with consumers the availability of loans and credit for businesses dried up following the onset of the global financial crisis. As the banking industry was brought to its knees in the financial meltdown many businesses were forced to look elsewhere for finance or even close their doors for good. 

However, over recent months things have been improving to some degree for the banking and financial sectors, which has seen the availability of finance ease up a little for both consumers and businesses. Despite this ease is credit conditions, however, lending to businesses still remains low, and a recent report has suggested that in order to get finance businesses will not need to demonstrate clear plans for growth and success.

The government has called on lenders to ensure that business loans are made available for businesses that are striving to grow and flourish, stating that they are vital to the future success of the economy, and the government has taken a number of steps to try and increase the availability of loans for businesses. However, following the events of the last few years in the financial sector banks are naturally being very cautious about handing out loans to both businesses and consumers. 

One bank has recently stated that whilst banks are keen to support businesses in the UK they also needed to see some form of commitment to growth and success for the businesses that were looking for finance.

Brian Colquhoun, Yorkshire Bank’s North West regional director, said: “We’re entering another crucial stage of the economic recovery. On the whole, banks are keen to support businesses in what remains a tough environment.   From a Yorkshire Bank perspective, we’re as keen as ever to support trading businesses that have strong management and clear plans for growth. From a customer point of view, management teams are emerging stronger from the experience of the downturn. They’re looking to create lasting relationships with a partner that has the ambition and vision to provide a solution to financing needs. Banks with clear appetite to lend will benefit from this.”

Tags: Banking, business, loan, lending, Bank

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Consolidation loan could prove beneficial for many in debt

Tuesday, June 29th, 2010

Being heavily in debt is something that many people are having to cope with, and over the past couple of years, with the recession and the financial crisis taking their toll, many have found themselves getting deeper and deeper into debt. A lot of people that have accrued debt over the years have a range of different debts that they are paying off, such as credit cards, store cards, loans, and overdrafts.

Often these debts can carry very high rates of interest, and this means that consumers can end up paying a fortune for their borrowing over the term of the loans and cards. In addition to this, having a range of different debts to deal with can prove to be difficult and inconvenient because it means having to make repayments to a number of different creditors each month.

Many officials believe that some people that have a range of different debts could benefit from consolidating these debts into one convenient, lower interest loan, and this is something that they can do with a consolidation loan. A number of lenders offer consolidation loans, and depending on the credit rating of the applicant the rate of interest charges can be very reasonable compared to the rates charges on most credit and store cards.

Borrowers can benefit from consolidation in a number of ways. Consolidating a range of higher interest debts into one lower interest loan can really cut the amount of interest that the borrower pays overall, and it can also reduce monthly outgoings as the repayment on the consolidation loan may be lower than the combined repayments on the individual debts. In addition to this borrowers will not have to worry about making different repayments to different creditors, and will only have to deal with one lender.

Tags: loan, finance, debt, debt consolidation

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Bogus companies offering personal loans

Friday, June 18th, 2010

According to recent reports there has been an increase in the number of companies that are offering fake personal loans in the UK, and those being targeted by the bogus companies are people that would most likely be unable to get a traditional loan and are therefore more vulnerable or high risk. Officials are warning consumers to be on the lookout for suspicious loan companies and offers.

In the current economic and financial climate many consumers are more likely to fall victim to these bogus companies, as many will be after a financial lifeline, which they believe that these companies may be offering. Officials have warned consumers to look out for companies that target people through cold calling or via the internet or text messaging, as these are more likely to be the bogus ones.

The warning was issued by officials from the Citizen’s Advice Bureau, and there are concerns that people that are unable to get finance from mainstream lenders may easily fall for these scams in the hope of being able to get finance. However, many of these companies are charging upfront fees to customers to get them a loan, and then the loan never actually comes to fruition.

One official from the CAB said that many of these companies were targeting more vulnerable people, as they knew that they would be more likely to fall for the scam. She said that people needed to be careful of companies that carried out cold calling, emails, and SMS messaging, and direct mail campaigns in order to get people to take out a loan.

Consumers that are looking for a loan should always check the credentials and reputation of a company before making any commitment, and should always exercise caution if asked to pay an upfront fee.

Tags: finance, bogus, loan, credit, fee, Citizen's Advice Bureau

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Will your lenders help if you are in financial trouble?

Saturday, May 22nd, 2010

There are many people that are in debt these days, and a huge number of them are struggling to keep on top of repayments to the point where they are having to cut back not only on luxuries but on day to day items such as food and household necessities.

The recession and the global credit crisis has resulted in an increase in the number of people that are facing difficulties with repaying their debts, and many borrowers do not know where to turn to get the financial assistance that they need.

There are actually a number of options available to those that have unmanageable debt levels, such as contacting a debt charity for advice or simply streamlining spending and outgoings. Another option is to contact the lenders to see whether the terms of the loans can be negotiated, and this is something that lenders have become increasingly used to over the past couple of years.

If you have debt that you are struggling to repay it is important to take action before you get to the point where you literally do not have the money to make the repayment and subsequently start falling into arrears. If you are already struggling and feel that things could get worse it is advisable to take action as quickly as possible.

In the current financial climate most lenders will be sympathetic with those that have always managed to maintain repayments in the past but have now started to struggle due to their financial circumstances. This is why it is well worth contacting the lenders and explaining your situation to see whether there is anything that they can do to help.

If you have a good credit rating lenders may be able to offer a consolidation loan, where all of your different debts will be rolled into one and you would pay over a set period of time based on the amount that you could comfortably afford to repay each month.

If this is not an option lenders may be able to review the terms of your loan and make changes, such as increasing the length of the loan period so that you repay over a longer period of time but you are paying less money each month. You can contact your lender in writing or by phone to discuss your financial problems, but it is always worth making an appointment to go in and explain your financial situation as this will get things moving far more quickly.

Tags: loan, finance, debt, lenders

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Fewer personal loans being used for consolidation

Thursday, April 22nd, 2010

Recently performed research has indicated that compared to two years ago far fewer personal loans that are taken out in the UK are being used for the consolidation of other debts by consumers. The research was carried out by Sainsbury’s Finance, with the results showing a marked change in the number of people using personal loans to consolidate their other debts.

The research from Sainsbury’s Finance showed that a couple of years ago one pound in every thirteen pounds taken out by customers in the form of personal loans was used towards consolidation of other debts. However, this has now dropped to one pound in every fifty pounds, which marks a significant drop in the number of people using personal loans for debt consolidation.

Officials from Sainsbury’s Finance have said that whilst people are still taking out personal loans they are being used more for other purposes now rather than for consolidation of other debt. Home improvements are a popular choice for the use of personal loans, and more people are also using these loans more for the purchase of a new vehicle.

A Sainsbury’s spokesperson said: “Debt consolidation has always been one of the most common reasons for people to take out personal loans. But while more and more people are taking out a loan for other reasons, there has been a sharp decline in the proportion of people borrowing money in order to consolidate their debts.”

The spokesperson also went onto to state that consolidation was still something that those with a lot of debt should consider, as it could cut their monthly repayments down to an affordable level and could reduce the overall amount of interest that they pay on their debts. He added that it was important for consumers to shop around for the best rates when considering personal loans for any purpose.

Tags: credit, Sainsbury's, loan, debt consolidation, finance

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Minimum repayment encouraging credit card debt

Sunday, December 27th, 2009

Many consumers are being lulled into a false sense of financial security by credit card lenders that are quite happy to accept very low repayments on the credit card balance, but failing to make clear to the consumer that this will lead to a lifetime of debt for many. (more…)

Tags: credit card debt, loan, Credit card, Debt-snowball method, minimum repayments, debt, Credit counseling

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Repossessions relating to credit card debt could increase

Friday, December 18th, 2009

There are concerns that the number of repossessions in the UK that stem from credit card debt rather than secured debt may start to increase, which means that many people that may have kept on top of their mortgage repayments and other secured debts could still end up losing their home because of other debts that they have defaulted in even if the debt was not a secured one such as credit cards. This is due to proposals that are set to go into consultation over the coming weeks. (more…)

Tags: debt, finance, loan, mortgage, credit, credit card debt, Personal finance, unsecured debt

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Borrowers trying to pay off more debt

Tuesday, December 8th, 2009

Recent figures have shown that whist mortgage lending was up in October compared to September it appears that the residents of Great Britain are keeping focussed on paying off as much debt as possible. (more…)

Tags: loan, debt, credit, Debt settlement, debt consolidation, economist, Global Insight

Posted in Debt News | 1 Comment »

Can you get a loan if you have poor credit?

Saturday, August 9th, 2008

Many people have suffered financial difficulties in the past because of their poor credit rating. A poor credit rating is achieved when you make regular late repayments on bills and debts, or worse still miss repayments altogether thus defaulting on your financial obligations. Once you have a bad credit rating you will find it difficult to get any sort of affordable finance in the future, and this includes loans, credit cards, and even a mortgage. (more…)

Tags: loan

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Overdraft popularity increases as loan accessibility is reduced

Tuesday, June 3rd, 2008

As many consumers will be only too aware accessibility to loans of any sort has become far more difficult over the past nine months, since the global credit crunch swept across the UK, wreaking havoc in the nation’s financial markets. Many consumers who may have been eligible for a loan a year ago may find that the tighter credit conditions in place now mean that they can no longer get an affordable loan – or in some cases any loan – which has made things very difficult for some, particularly given that many households and experiencing real financial worries due to increased living costs. (more…)

Tags: loan, banks, overdraft

Posted in Loan News | 1 Comment »

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