Posts Tagged ‘Personal finance’

Avoiding interest on your Christmas debts

Wednesday, October 12th, 2011

It is likely that many people in the current climate will be turning to finance and borrowing in order to get the money to make purchases over the up and coming Christmas period. This includes purchases such as gifts, new clothes for going out, entertainment and socialising, and extra food and drink for the festivities. However, many of those who take out finance to fund the festive season could end up paying a fortune in interest if they choose the wrong financial products.

By using some common sense and thought consumers who are having to fund Christmas with finance can avoid having to pay any interest, which can bring down the cost of Christmas considerably compared to spending on a high interest store card, overdraft, or other form of borrowing where you will end up paying interest on the cost of your purchases.

One way to avoid debt from high interest borrowing over the Christmas period – which can really bump up the cost of the season – is to look at taking out an interest free purchase credit card, which enables you to spread the cost of Christmas over a reasonably long period of time without being charged any interest. The period of interest free credit can vary based on the card that you take out.

There is also an option for those that are looking to pay off their spending within a few weeks following Christmas and New Year, which means that they would not be charged any interest anyway. In this situation a rewards credit card could be the ideal option, as it means that you can earn a little something back for using the credit card, which could anything from loyalty points or air miles to cash back and discounts.

Tags: option, anyway, order, festivities, Personal finance, Christmas and holiday season, gifts

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Personal debt issues could hit public sector workers

Thursday, October 21st, 2010

According to some industry experts many public sector workers could face rising levels of personal debt as a result of the many cutbacks that have been made by the coalition government. Having outlined the cutbacks in his emergency budge earlier this year the Chancellor of the Exchequer, George Osborne, was more specific about his cutbacks in his Spending Review in October, and there are fears that there could be around half a million job losses in the public sector.

The Consumer Credit Counselling Service has said that more and more people will have to face up to personal debt issues, and since the government cutbacks will also have a knock on effect on the private sector there will be many people that will struggle with their debts due to job losses and cuts in their hours.

Many people are already struggling when it comes to managing their debts because of the problems caused by the recession and the global financial crisis. With the cutbacks that many people now face at their places of work the problem could become even worse, and a rising number of people will be considering insolvency, debt management plans, and other solutions to enable them to deal with their debts.

The Consumer Credit Counselling Service has said that anyone that is concerned about repayment of their debts is advised to contact them or a similar debt charity so that a solution can be reached with regards to how the debt issues can be handled.

One official from the service stated: “I would urge anyone struggling to repay their debts to seek help from a charity such as CCCS or Citizens Advice who can provide free advice and support.”

Tags: debt, Consumer Credit Counselling Service, Chancellor of the Exchequer, job, Spending Review, finance, Personal finance

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Increase the chances of getting a loan

Tuesday, October 19th, 2010

For many people these days getting a loan has become increasingly difficult, and this is partly due to the fact that lenders are being so stringent when it comes to lending criteria. With many people desperate to get finance it has become increasingly important for those looking for a loan to do all that they can to boost their chances of success.

There may be many people that are looking for a loan in the run up to Christmas, and with so many people worried about their finances for Christmas many may be relying on getting a loan in order to fund their Christmas spending and purchases.

It is important that you do not apply for a loan if you do not stand much of a chance of getting it, as this could adversely affect your credit, making it increasingly difficult to get finance in the future. It’s a good idea to take the time to order and look through your credit report before you apply, as you can then see whether you are likely to be seen as creditworthy by lenders.

It is also important to ensure that any loans that you do apply for are going to be suited to your needs. You should check the eligibility requirements on any loans you are considering carefully to ensure that you fir the criteria in terms of minimum income, age, credit status, and other criteria that may be in place.

It is also important to ensure that you compare a range of different loans in order to boost your chances of success, and this is something that you can do with speed and ease online. By comparing different loans and lenders you will be able to see which ones offer loans that are suited to your needs and which can offer the best value for money on borrowing.

Also, before you start applying for a loan work out what you want from your loan in terms of whether you want a secured or unsecured loan depending on whether you are a homeowner, how much you need to borrowing, what sort of repayment term you are looking for, and what to sort of repayments you can afford on a monthly basis. You can then focus on lenders and loans that are going to be suited to your needs rather than making random applications for loans that may not be suited to you.

Tags: Unsecured loan, finance, Personal finance, credit history, Christmas

Posted in Featured Articles, Loan News | No Comments »

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: Personal finance, debt, credit, loan

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Consumer confidence levels in mortgage and property markets still low

Thursday, September 16th, 2010

It has been announced that the level of consumer confidence in the mortgage and property markets is still low, despite claims that lenders may be easing up on mortgage lending to some consumer groups. Although there have been some recent improvements in the mortgage markets in the UK consumer confidence is still suffering, according to a recent report.

New figures have been released by the Building Societies Association, with officials stating that a large number of people in Britain are still not confident when it comes to the mortgage and property markets. The figures were compiled as part of the September 2010 BSA Property Tracker Survey. The figures showed that the number of consumers who lacked confidence in the markets increased from 21 in June to 26 for this month.

A large number of Brits do not believe that now is a good time to invest in property, according to officials involved in the survey, and there were many others who cited a number of factors as barriers to being able to purchase a property. These barriers included lack of job security in the current financial climate and difficulties in raising a deposit given the high level of deposit that some lenders were still demanding. More than 56 percent of respondents to the survey gave these reasons.

The BSA said that whilst access to mortgages was now better than it was earlier in the year many people were still left out in the cold due to factors such as job security, their credit history, and their debt levels.

BSA head of mortgage policy Paul Broadhead said: “It is clear that concerns about future falls in property prices are having a significant impact on consumer confidence.”

Tags: mortgage, Personal finance, Mortgage loan, Consumer confidence

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BBA says mortgage lending still subdued

Friday, July 30th, 2010

A recent report from the British Banker’s Association has shown that mortgage lending levels for the month of February remained subdued. In its report the BBA stated that the UK’s big banks approved 35,275 mortgages for the month of February, which was not much higher than 35,154 seen in January. (more…)

Tags: mortgage, finance, Banking, Financial Services Authority, Personal finance, British Bankers Association

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

Posted in Featured Articles, Loan News | No Comments »

Why use a loan comparison site?

Thursday, June 3rd, 2010

Finding a loan can be very difficult for borrowers these days, and with the restricted number of loans available coupled with the increased stringency of lenders some people really do struggle to find a loan that is well suited to their needs. Some may struggle to find a loan at all, often because they do not have perfect credit and are looking at companies who mainly deal with those that have not had credit problems in the past.

Over the past couple of years it has become even more difficult to find the right loan, as increased restrictions put into place by lenders have made it more difficult for those that want a loan that is both suitable and affordable. Whilst those that are looking for a loan can go through the websites of each of the individual lenders this can be a very time consuming and frustrating task. It also does not necessarily mean that you will find the finance or loan that you are looking for.

Over the past few years specialist websites have been set up known as comparison sites, and these allow users to compare everything from loans and insurance to credit cards, mortgages, and much more. You will find a range of comparison sites to suit your needs depending on the product or service that you are looking for, and these sites can make it far easier and quicker to find the right product or service at the right price.

With a loans comparison site you can really speed up the process by using the filtering facilities that most of them offer, where you can put in details such as whether you want a secured or unsecured loan or whether you have a good or bad credit rating. The results that you get back on the site will be based on the information that you entered, which means that you won’t have to waste a whole lot of time looking through loans that are not going to be suited to your needs and circumstances.

Once you have retrieved the list of loans and lenders from the comparison site you will be able to see at a glance which of them will be suited to your needs, and which are the ones that offer the most affordable repayments. You can then choose a loan that you know is going to be right for you and that you can comfortably meet the repayments on.

Tags: comparison site, finance, loans comparison site, Personal finance

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Credit Action figures show personal debt is on the rise

Thursday, June 3rd, 2010

Over recent years the level of personal debt that has been accrued by consumers in the UK has caused a great deal of concern, and for many individuals the debt problems have become increasingly worse as a result of the financial turbulence of the past couple of years. New figures that have been released have shown that personal debt levels in the UK have continued to increase.

The report has been released by the debt charity Credit Action, and the figures on the report have shown that personal debt levels have continued to increase. The twelve month growth to the end of April this year was 0.8 percent, and the total amount of personal debt came in at £1460 billion. In April of this year total lending is said to have increased by £0.4 billion.

In a breakdown of lending figures the Credit Action report showed that secured lending for the month had increased by £0.5 billion whereas consumer credit lending had fallen by £0.1 billion. The average level of debt per household in the UK is close to £9000, and this does not include their mortgage or secured debts. With mortgage debt included the level of debt per household comes in at close to £58,000.

Over the past couple of years many consumers have been in a catch 22 situation where they have been unable to get affordable finance due to restrictions put in place by lenders but at the same time have needed access to finance in order to fund their day to day lives in some cases due to problems caused by the financial crisis and job losses.

For many this resulted in them turning to their overdrafts, credit cards, and even doorstep lenders in order to get the money that they needed for essential purchases and bill payments.

Tags: debt, finance, Personal finance, Consumer debt

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Why save when you have debts?

Thursday, May 27th, 2010

These days many people are dealing with the burden of unsecured debt, with many having to make repayments on loans, credit cards, store cards, catalogues, and other types of unsecured finance. The past couple of years have been financially turbulent for most people, and many have ended up increasing their debt levels and having far more to cope with in terms of their financial commitments.

Whilst the base interest rate is at the rock bottom level of just 0.5 percent at present this is not always reflected in borrowing rates, and for many the interest rates being charged on loans, credit cards, and stores cards is extortionate given that the base rate it at such a low level. At the same time the interest paid on savings is minimal, which means that those putting their money into savings accounts are getting little to no return.

With this in mind it is worth considering whether there is any point in putting money into any form of savings account if you already have debt to pay off. The returns earned on savings will be far outweighed by the interest charged on debts in most cases, and this means that those that have debts would be better off putting any spare money towards repayments of their debts rather than putting it into a savings account where they will receive very little in the way of returns.

Recent reports have shown that many savvy consumers have realised that they could be losing out financially by putting spare money into savings rather than  using it to repay debts, and this has seen the number of people that are paying down their debts rather than saving money surge. For many getting rid of high interest debt has become a priority in the current climate, with many wanting to rid themselves of the burden of debt as quickly as possible.

Credit cards in particular have high rates of interest, with the gap between the base interest rate and the interest rate charged on cards becoming increasingly greater. Consumers who have a balance on a high interest credit card would therefore benefit from transferring the balance onto a 0% balance transfer card or using their savings to repay the debt. This way it is possible to avoid the huge interest costs that some providers charged on credit cards.

Tags: Personal finance, Interest, debt, saving, finance

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Borrowers should prepare themselves before applying for loans

Wednesday, May 26th, 2010

Borrowers in the UK are being urged to prepare themselves before they make an application for a personal loan, with the current financial climate making it increasingly important for consumers to carry out checks before they make an application for a loan.

According to the report anyone that is considering applying for a personal loan should make sure that before they submit an application of even start comparing loans they order a copy of their credit report and do a proper check on their credit. This can help to boost the chances of getting an affordable loan by ensuring that the data on the report is correct, and can reduce the risk of consumers damaging their credit rating by applying for loans when their credit is not up to scratch.

Officials have said that lenders are far more stringent these days when it comes to credit checks, and even small blemishes can affect consumers’ changes of getting affordable personal loans and other forms of finance. This is why consumers should check their reports to see if there are any problems and check whether they can be rectified before they spend time looking at different loans and completing applications.

Consumers are able to order their credit reports online, which means minimal hassle. Checking their credit reports can help many people to enjoy increased peace of mind when making a loan application.

Credit reference agency Equifax said: “The credit crunch and lenders’ subsequent aversion to bad debt mean that our financial histories are being placed increasingly under the microscope. Credit ratings can be affected by anything from the basics – such as your history of repaying debt – to the finer details such as whether you own a fixed-line telephone.”

Tags: Unsecured loan, credit score, credit history, Personal finance, finance

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Those in debt should consider IVA over bankruptcy

Thursday, May 13th, 2010

These days there are many people that are in debt over their heads, and for many of these people repaying the debt is pretty much impossible. In some cases consumers that are unable to meet their financial obligations do not really know the options that are available to them, and some launch straight into the bankruptcy procedure without looking at any alternatives.

However, one industry expert has recently claimed that those with a relatively high level of unsecured debt who cannot make repayments could do far better by considering an IVA, or Individual Voluntary Arrangement, as this could provide a number of benefits over other possible solutions such as bankruptcy or Debt Relief Orders.

The advice came from Pat Boyden, personal insolvency expert at PricewaterhouseCoopers, who said that one of the main reasons why an IVA could prove so beneficial compared to the other options was because this was a plan that provided far more structure for those in debt, enabling them to both improve their own finances over a period of time and return at least some of the money that they owe to creditors.

IVAs are known as a softer alternative to bankruptcy, and should not be entered into lightly or without thought. However, for those that really are struggling with a large amount of unsecured debt with a number of creditors these plans can provide structure and financial relief.

Boyden stated: “A massive 35,682 people entered into personal insolvency in the first three months of 2010, showing that the record number of personal insolvencies reached last year is showing no signs of slowing as the UK economy comes out of recession. The UK consumer continues to struggle with personal debt and will do for some time yet.”

Tags: debt relief, debt, individual voluntary arrangement, finance, bankruptcy, Personal finance

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Many families still living on the edge financially

Friday, April 9th, 2010

According to a recent report many families in Britain are still living on the financial edge despite the recession being over and the financial markets said to have improved. For many people even a slight drop in income could result in them being unable to keep on top of financial commitments, and with the prospect of job losses still a concern this could pose a real problem for many households.

According to a recent survey 25 percent of people said that if their household income dropped by £300 a month they would no longer be able to make repayments on their mortgage. With the threat of job losses still very real, and with pay freezes compared to inflation causing problems, this could put many people on the edge financially.

The credit reference agency Call Credit questioned over two thousand respondents with regards to their financial situations, and 26 percent of those questioned said that they would struggle to make mortgage repayments if they lost several hundred pounds off their income.

Research also showed that around 9 percent of those questioned had lied about their income in order to get the credit that they wanted, telling lenders that they were earning more than they actually were in order to be able to get the amount of finance that they needed.

A Call Credit official said: “These statistics are extremely alarming. A significant proportion of people aged 35 to 44, many of who may have families to support, are living on a financial precipice where just one negative event, such as a reduction in paid overtime or an unexpected expense, could have disastrous financial consequences. What is of real concern is that some people are deliberately over-inflating their income to increase their credit limit. If the borrower then maxes out their high credit limit, they are running a serious risk of getting into financial difficulties and being unable to repay the debt.”

Tags: income, mortgage, finance, Personal finance

Posted in Mortgage News | No Comments »

Mortgage availability on the increase

Tuesday, February 23rd, 2010

Over the past couple of years the mortgage industry has been through some tough times, and both consumers and the economy as a whole have been affected by the lack of mortgage finances that has been available. (more…)

Tags: Super jumbo mortgage, Personal finance, Mortgage loan, mortgage

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Elderly could save money with equity release service from charity

Monday, February 22nd, 2010

Equity release schemes can often prove to be very useful for older homeowners that want to unlock some of the equity in their homes, but the scheme have also come under fire on a regular basis as a result of the fees that many elderly end up paying. (more…)

Tags: Consumer Credit Counselling Service, Personal finance, equity release

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New borrowing on credit cards and loans on the rise

Saturday, February 20th, 2010

Official figures that have been recently released have shown that new borrowing on credit cards, loans, and overdrafts has been increasing, with the level of new borrowing outweighing the amount that has been repaid by consumers for the first time since June of last year. (more…)

Tags: Bank, credit, borrowing, Credit card, Personal finance, bank of england

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Continued popularity for variable rate mortgages

Monday, February 15th, 2010

Whilst there was a time when people wanted to avoid variable rate mortgages because of the high rate of interest attached to them many people at the moment are finding that these are the most cost effective mortgage types to opt for because of the record low interest rate that is still in place. (more…)

Tags: Banking, John Charcol, Floating interest rate, mortgage, Personal finance, Fixed rate mortgage

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Reductions being seen in personal loan rates

Tuesday, February 9th, 2010

It has been reported that finally the rates charged on personal loans rates may be starting to fall. For many this will have been a long time in coming, given that the base interest rate in the UK has been at an all time low of just 0.5 percent since last March. (more…)

Tags: credit, loans, Personal finance, Interest, payday loan, interest rates, personal loans

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Up To 4 Percent Increase In House Prices Says CEBR

Friday, January 15th, 2010

It has been forecast by the Centre for Economic and Business Research that house price increases next year will start to moderate and stabilise after a series of increases over recent months. (more…)

Tags: bank of england, interest rates, Personal finance, mortgage, Centre for Economic and Business Research

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

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Experts give opinions on FSA mortgage lending regulation changes

Tuesday, December 15th, 2009

The mortgage markets have been turbulent to say the least over the past couple of years, and many of the problems that have almost brought the financial sector to its knees have been blamed on irresponsible mortgage lenders over the past decade, where high income multiples, extended repayment periods, lending to those with bad credit, jumbo mortgages, and high risk lending was all part and parcel of the mortgage lending sector. (more…)

Tags: mortgage, British Bankers Association, Economy of the United Kingdom, Personal finance, Financial Services Authority

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Rent to Home-buy scheme deemed unsuccessful

Wednesday, December 9th, 2009

The Rent to Home-buy scheme that was launched by the government in the hope of enabling more people to get onto the property ladder has been deemed unsuccessful. (more…)

Tags: Real property law, rent to homebuy, Personal finance, mortgage, Conservative Party, Property law, Labour Government

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