Posts Tagged ‘loan’
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: debt, finance, friends, loan
Posted in Loan News | No Comments »
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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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: Bank, buainess, Business_Finance, finance, loan
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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, Interest, loan, payday loan
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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: credit, finance, loan, payday loan, Personal finance
Posted in Featured Articles, Loan News | No Comments »
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: Bank, Banking, business, lending, loan
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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: debt, debt consolidation, finance, loan
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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: bogus, Citizen's Advice Bureau, credit, fee, finance, loan
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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: debt, finance, lenders, loan
Posted in Debt News, Featured Articles | No Comments »
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, debt consolidation, finance, loan, Sainsbury's
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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, Credit card, credit card debt, Credit counseling, debt, Debt-snowball method, loan, minimum repayments
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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: credit, credit card debt, debt, finance, loan, mortgage, Personal finance, unsecured debt
Posted in Debt News | No Comments »
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: bank of england, credit, Credit card, debt, debt consolidation, Debt settlement, economist, Global Insight, Howard Archer, loan
Posted in Debt News | 1 Comment »
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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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: banks, loan, overdraft
Posted in Loan News | 1 Comment »