Archive for Bad Credit Loans

Real Ways To Get Loans With Bad Credit

Monday, April 20th, 2009

Getting a loan even with bad credit isn’t a myth anymore- it’s very possible. It’s also part of the reason why many banks in today’s economy are starting to fail- since they are offering more loans than they can keep up with. But this is great for borrowers, who will rarely be turned away due solely to a blemish on their credit report.

Applying for a bad credit loan means a few things. It first tells the lender that the borrower may not be able to pay the loan back- so they’ll likely put a rate hike on their account to get more money from them in case they should default. This goes to show that a snowball situation may occur, in which the consumer digs themselves into larger and larger debts.

Obtaining a bad credit loan also is subject to predatory lending. Lenders know that out of all the borrowers, those with bad credit will be the most desperate- and therefore more likely to submit to less fair rules of play. This puts new meaning to the act of scanning contracts with care, since lenders may try to impose unfair rules of agreement onto the borrower. In most cases, the borrower may not even have a choice.

There are ways for borrowers to lessen the burden of a bad credit loan- one way certainly being obtaining a secured loan against one’s own home. This is the most popular type of secured loan for bad credit loans, since borrowers will be reassured of a valuable piece of property in case the borrower defaults. This gets better rates for the borrower, but the term of the loan is usually much longer- and thus, costlier.

A special word of advice for prospective borrowers is to simply try and fix their credit score before applying for a loan. Even just a few points in a mortgage loan can mean tens of thousands of dollars in the long run, so this step is vital to saving money and getting clear of debt. Free credit reports can be obtained at select locations, and further analysis from there can take place to find the best course of action in fixing the score.

It’s also a good idea to ask the question, “Do I need this loan?” Loans themselves can be tricky since they tend to put borrowers in debt. When they can be avoided, they should very well be bypassed to prevent any possible debts arising. But when it comes to buying necessities in life, it’s usually more plausible to settle and scout out one’s options for the best bad credit loan available.

Closing Comments

Bad credit loans have become quite popular as the general consensus of the last few years has been that few consumers still have good credit. Banks and lenders have had to adapt to keep customers, and likewise, most will have solutions for anyone with a less than satisfactory credit score. To find out more, consult local lenders for more information.

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Mortgage Market Comes Back To Earth

Wednesday, November 26th, 2008

The UK mortgage market is beginning to return to a state of normality after an extended period of high prices and easy access to property purchase loans, Your Mortgage has claimed.

While many homeowners may be worried about tumbling house prices and first-home buyers may be struggling to get their foot on the first rung of the property ladder, the market has for some time been inflated beyond realistic levels, presenting people with a home sales environment that was “too good to be true”.

For those who are having difficulty securing finance for a property in this unfavourable climate, taking out a personal loan may be an effective way to boost the amount of cash that can be put down as a deposit, thereby encouraging lenders to extend finance.

Meanwhile, Your Mortgage said that both buyers and sellers should brace themselves for an extended period of adverse property conditions, with a recovery not expected for at least 12 months.

Commenting recently, Barney McCarthy, editor of the independent advice website, said that the recent falls in house prices would not necessarily help first-time buyers enter the market.

“While house prices are lower than they have been for a long time – so it looks more affordable – the actual lenders themselves are more reticent to actually lend the money and are actually requiring much larger deposits than before,” he said.

However, Mr McCarthy went on to remind people that the current situation is not as dire as it could be.

“The situation at the moment isnt as bad as people make out; over the last couple of years it has almost been too good to be true and now it is returning to something more approaching normality,” he commented.

However, he did say that the days of easy access to loans and credit had been resigned to history, suggesting that many Britons will have to work harder to secure finance for the foreseeable future.

For those who have found themselves shut out by banks as the financial woes have rumbled on, taking out a bad credit loan may prove an effective way to begin to repair damage done to their finances. In applying for this type of loan, people could find they are able to begin to make regular payments on items outstanding in a bid to present a more positive image of their financial position to banks and other lenders.

Meanwhile, Mr McCarthy concluded by suggesting that while some would struggle as cheap mortgage lending began to dry up, he said that this could soon pave the way for a more measured approach to borrowing where consumers are less likely to struggle to keep up with mortgage repayments. In such a scenario, consumers could find that it becomes easier to put money aside each month. According to research carried out by Nationwide, a quarter of Britons currently feel that they are not saving enough money, although more than half (52 per cent) said they are hopeful they will be doing so in six months time.

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Recession Kicks In For Brits Struggling To Save

Thursday, October 30th, 2008

More than 20 million Britons lack the funds to put money aside during the current economic downturn, AXA has claimed.

According to the insurer, this proportion of people have resorted to whittling away at their savings since the beginning of the year, while only the top 20 per cent of wage earners throughout the UK have been able to avoid spending beyond their means. The group insisted that new savings ratio statistics showed that the minimum income on which people can put money aside now stands at 70,000 pounds, equivalent to 52,785 pounds after tax and benefits.

Furthermore, it noted that in the wake of the global credit crisis, it is important for consumers of all income brackets to be able to rely on sound financial practices which will help them to stay afloat as the economic storm clouds gather. Only with tangible solutions to financial hardships will consumers be able to overcome the anxiety of entering a recession, AXA claimed.

As such, the group invited people to take part in the annual My Budget Day, which aims to raise awareness of the importance and effectiveness of setting out a firm financial roadmap. Taking place on November 20th, the event will have particular significance in light of recent financial turbulence, the insurer said.

Commenting on the current problems facing “real Britain” today, Steve Folkard, a spokesperson for AXA, warned: “If only the richest members of society are managing to cope with their spending then we really need to consider how to improve the day-to-day financial health of British households. Talking about global issues is important but they need to be put in perspective with tangible solutions being offered to individuals. People are anxious about how to deal with their finances. You need to get into the habit of regularly reviewing your financial situation and My Budget Day is about kick-starting that habit.”

He added that people only need to spend an hour each month reorganising their finance and in doing so they will be able to put themselves on a much firmer footing. However, Mr Folkard claimed that currently, many Britons feel at a loss as to where to turn to for financial support. He warned that while many people are feeling the pressure, those who do not pursue a remedy could end up feeling disengaged and dejected, which in turn could lead to further financial problems.

For consumers who have seen their fiscal fortunes fall by the wayside in recent months, taking out a debt consolidation loan may prove an effective way to extend repayment commitments and boost monthly disposable income. Meanwhile, for those who have found their access to money dwindle as the crunch has rumbled on, applying for a bad credit loan may allow them to begin making regular repayments and repair their credit history and get back on better terms with their creditors.

While more people may have been feeling the pinch since the beginning of the year, childrens charity Ray of Sunshine has recently claimed that one upside of the economic turbulence has been that families and communities are now becoming more close-knit as they try to do battle with the crunch.

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Consumers Envisage Winter Of Discontent

Monday, October 20th, 2008

More than half the UK population is worried about the possibility of entering into recession in the coming months, new figures indicate.

According to Close Investments, the fear of imminent negative growth was usurped only by concerns about the lack of credit in terms of the countrys top anxieties. While 52 per cent of people said they were worried about a recession, 53 per cent claimed that the credit crunch was a top concern. And it seems that while a large number of Britons are weighing the prospect of a recession on one hand, 43 per cent are also worried about soaring inflation, meaning that many may be imagining that much bemoaned scenario of stagflation, where jobs and spending dries up while prices continue to soar.

While many seem to be worried about the immediate effects of the current economic downturn, it seems that longer-term considerations have been pushed to the backs of many peoples minds. Of those questioned, 11 per cent said they worried that they were missing out on the benefits of having investments. This was equal to the proportion of people who said that none of the subjects cited were of any concern to them.

Close Investments added that while Britain is commonly portrayed as a nation which places high value on its homes, a little over a quarter (26 per cent) said the housing market was a cause of concern for them. Meanwhile, it seems that access to credit cards and personal loans may be a more pressing anxiety for many, with 43 per cent of those questioned saying that they were worried about how the credit crunch would affect them personally.

For those who have found it difficult to secure a loan in recent months due to an adverse record on debt repayment, taking out a bad credit loan may prove an effective way to get back on a firmer financial footing. With the extra capital that a bad credit loan provides, people could find they are able to manage their outgoings more effectively and avoid defaulting on any further payment commitments.

Commenting on the findings of the report, Hannah Parkinson, assistant director of marketing at Close Investments, claimed: “The Close Investments survey highlights the concerns that people have about the economy. More than half of those surveyed believe that a recession is coming, but in particular those over 45 years were worried by a possible recession and inflation. Clearly people are worried about what the future holds for themselves and their families. No one likes to plan for the worst, but it is sensible to do so. Saving for a rainy day and for your future is prudent financial sense, but when markets are turbulent and uncertain it can undermine peoples confidence.”

Saving for later life may be particularly important for those who are getting on in years, after a study by the Life Trust Foundation published earlier this month claimed todays workforce could face a “pensions pinch” in later life as they fail to put enough aside to support themselves in their extended retirements.

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Getting To Know The Crisis

Thursday, October 9th, 2008

While stock markets across the world have drawn breath as share prices have stumbled, many may be left wondering how the current economic crisis has come about.

According to Edward Jones, an investment adviser, a simplified explanation starts with the sale of sub-prime loans in the US. This form of lending was designed to extend funding to people with unfavourable credit histories in order to get them on the property ladder. However, while many American firms were happy to offer these bad credit loans, it has become evident that a portion of them will not be repaid because consumers cannot afford to keep up with repayments. And as banks have tallied up how much money they have lost as a result of the unpaid debts, they have also become more wary of handing out cash, with many even cautious of swapping money between themselves.

The group noted that as this has happened, companies that depend on other banks to provide them with short term loans have been brought to their knees as institutions bunker down and withdraw loan offers in an attempt to minimise their exposure to the growing financial storm.

However, the group was quick to point that although conditions may be rough, it looks like the financial climate will brighten up over time. It reminded people that while financial crises can be difficult to cope with, they seem to be a cyclical part of the global economy, with history showing that they tend to strike every 20 years or so.

Advising those who are questioning whether the worst of this particular crisis is over, the group professed: “No one knows for sure. The economy has weakened and there is almost certainly more bad news about some banks. Usually when feelings become as pessimistic about the outlook as they are now, times begin to improve. We know consumer confidence is extremely low, many headlines are negative and many investors are worried. Instead of guessing about the short-term news, stay focused on your long-term goals and your strategy. The worst mistake is to react out of fear and miss the rebound when it occurs.”

For those who are looking to ride on the shirt tails of a resurgent financial system, the group urged investors to keep a keen eye on companies with lots of cash in the bank to tide them over while the storm continues, pointing out that they will be able to extend their business in areas that are underserved as the weaker institutions are washed away. Most importantly, it urges people not to buy into dramatic headlines and instead look for long-term indicators of improvements to the economy as a whole, such as a boost in the housing market or an upturn in consumer spending.

At the end of August, Prudential warned that while the credit crunch seemed to have little effect on consumers on an individual level, many Britons were very worried that price rises would soon be felt. Rising food, petrol and fuel bills were found to be principal causes of concern for consumers looking to limit their outgoings on essential items.

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AFB Calls For New Secured Loans Laws

Friday, September 12th, 2008

Following the publication of new white paper on the future of the future regulation of the secured loans industry, the Association of Finance Brokers (AFB) has called upon intermediaries to give their thoughts.

It is calling for responses on a number of secured loans regulation issues by September 20th. Among the proposals included in the paper is the option to remain under regulatory control of the Office of Fair Trading and the Consumer Credit Act, or to concede all regulatory powers to the Financial Services Authority (FSA). The group noted that – against the backdrop of the implementation of the Europe-wide Consumer Credit Directive – it is inevitable that the regulatory landscape of the secured loans industry will undergo substantial transformation.

The AFB was established to promote the views of secured loans brokers operating in the UK and focuses on lobbying delegates in the Treasury, the Office of Fair Trading, as well as the FSA, the government and EU policymakers. In doing so, it aims to promote the interests of the industry in a constructive way that connects regulators and lawmakers with the “front line” of the secured loans market.

Commenting on the new proposals, Robert Sinclair, director of the AFB, urged intermediaries to act in a progressive manner to ensure that new regulatory instruments protect the interest of brokers, loan providers and the consumer. He added that the public need to be put at the heart of any new legislation governing the secured loans market.

“Consumers and consumer groups are likely to see a move to FSA regulation as positive. An improved perception of second-charge lending could lead to increased interest in products, and increased awareness of the sector. Secured lending has a part to play in debt financing but it is vital consumers are treated fairly and well protected. We have already been in discussion with government and the regulators and they are keen for the industry to reach its own conclusions. If not, we will have that power taken from our hands,” Mr Sinclair added.

Furthermore, with the EU directive affecting the entire unsecured loan market, the industry will have to introduce step-change legislation that will fundamentally alter the way that secured loans are promoted and sold, he claimed. Because of this, he reminded stakeholders that there was no time for procrastination and disagreement, both of which could weaken the industry at a time when it needs to take strong action to ensure that the views of all interested parties are fairly represented in the new regulatory framework governing the secured loans market, he concluded.

Opting for a secured loan may be of interest to people who plan on making large purchases, or who intend to carry out structural work on their home. However, a report published by Moneyfacts published in July warned homeowners that they may find their ability to get a secured loan is diminished due to poor market conditions. It noted that seven major secured loans providers have exited the marketplace as the credit crunch tighten its grip on the industry.

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CML Reveals Rise In Repossessions

Friday, August 8th, 2008

As escalated living costs and constricted credit continue to weigh on people’s finance, the Council of Mortgage Lenders (CML) has announced an increase in the number of home repossessions throughout the UK.

In the first six months of the year, there were 18,900 cases of home repossession, compared with 13,400 in the six months to July 2007, the group reported. As such, the repossession rate stood at 0.16 per cent of all mortgage agreements throughout the UK. The organisation restated their commitment to earlier projections that there will be a total of 45,000 repossessions by the end of the year, in addition to 170,000 mortgages in arrears. While it noted the increase, the body also commented that the figures showed that when compared to the whole market, amounting to 11.74 million mortgage arrangements, the number of people experiencing repossession and arrears was very slim.

The group also announced that while it does not provide region-specific analysis or data categorised by loan type or property style, it is possible to extrapolate from the results the pronouncement that the adverse credit sector has been hardest hit by the ongoing effects of the credit crunch, while the rest of the mainstream market continued to perform strongly.

It noted that the banking industry is continuing to feel the effects of exposure to defaults affecting those with adverse credit loan arrangements, with the number of banks offering new bad credit loan arrangements increasing dramatically as they become more risk averse in constricted market conditions. As such, the group noted that for those struggling with mortgage repayments, the availability of options such as remortgaging products may be more constrained than it was in the first half of 2007 when lending environments were more favourable.

The CML insisted that it was working closely with industry representatives and the government to ensure that the impact of tightened loan markets on consumers was limited as much as possible.

Director general of the organisation Michael Coogan observed: “The number of people facing difficulty needs to be kept in perspective. The good news is that most people are coping well and continuing to pay their mortgages in full, despite the higher costs of food and fuel and the higher mortgage rates now prevailing in the market for those coming off cheaper original deals. But it is inevitable that more borrowers’ coping strategies will come under pressure in current conditions than in the unusually benign years of the last decade. That’s why lenders, government and the advice sector are working closely together.”

For those who have found themselves experiencing financial difficulty in recent months as living costs have risen, taking out a debt consolidation loan may prove an effective way to stop monthly expenditure from spiralling out of control. In choosing this type of loan, people may find they are able to spread out repayment contributions on bills, loans and other commitments, leaving them with more cash to make sure that mortgage responsibilities are met.

Opting for this type of loan may be of interest to a growing number of consumers as the summer season continues after a report from Sainsbury’s published last month revealed that holidays can put budgets under considerable strain.

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Britons Shown To Be In Higher Levels Of Unsecured Debt

Friday, August 1st, 2008

The financial difficulty being experienced by Britons is on the rise, it has been revealed.

In a recent study carried out by BankruptcyHelp and online finance site IVA, it was revealed that the average amount of debt people are in has increased over the last three months. At present, it was shown that the typical Briton has unsecured debt of some 9,090 pounds. Such a figure represents an eight per cent rise from data recorded in the same study conducted in April this year.

Due to facing rising levels of debt, it could be possible that consumers struggle more in managing demands for payment on borrowing such as credit cards and personal loans, as well as other monetary commitments such as utility bills, mortgages and transport costs.

However, it appears that financial difficulties are being felt most keenly by men, as males were revealed to have an average level of unsecured debt of 9,500 pounds. This is a rise of 13 per cent during the past three months from the previous study. However, men may not be alone in experiencing problems with debt as women are typically in the red by 8,670 pounds.

In a bid to combat their monetary difficulties, it was revealed that an increasing number of people are looking to file for insolvency. At present, five per cent of Britons – the equivalent of 1.9 million consumers – are shown to be considering applying for bankruptcy, up from the three per cent noted earlier this year. Men especially were shown to be considering this financial move.

The study also revealed that more people are considering applying for an individual voluntary arrangement (IVA), with numbers of those thinking about such an option rising by two percentage points to currently stand at seven per cent. An equal proportion of women and men are indicated to be thinking about IVAs.

Andy Davie, spokesperson for IVA and an author on debt, said: “The credit squeeze has left people with far fewer options when trying to deal with rising unsecured debt. The usual avenue of remortgaging to pay off unsecured debts has been severely narrowed and the reduction of mortgage products available is leading many to consider formal insolvency.”

Meanwhile, Julian Donnelly, BankruptcyHelp representative, claimed: “It would seem that men are generally falling into debt more rapidly than women as many try to maintain their traditional role as the family’s main provider, at the expense of getting further into debt.”

He added that this could result in a “knock-on effect” by causing a rising number of breadwinners to opt to file insolvency over the remainder of this year.

Those Britons who have had monetary difficulties in the past – but are wishing to avoid incurring the damage on their credit report that filing for insolvency can involve – might find that applying for a bad credit loan is advisable. By getting this kind of loan borrowers could discover that various areas of monetary demand can be met quickly, leaving them a single repayment to make each month. A bad credit loan might also be of help to those who have been the unwilling victim of identity theft after a recent American Express study showed that some 43 per cent of people view this as the most pressing security issue.

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Consumers Advised That Credit Applications Must Be Truthful

Monday, May 19th, 2008

In a world where credit is increasingly difficult to come by, consumers have been urged to resist the temptation to include falsehoods in applications for cards or loans.

According to David Kuo, head of personal finance at the independent advisory service the Motley Fool, the growing number of people who are lying on their credit card applications are doing to because many more banks are now looking to avoid providing finance to customers perceived to be more of a risk. His comments came in response to a recent study by the UK fraud prevention service Cifas, which found that there has been a 13 per cent increase in the number of people who are making untruthful applications for personal loans, insurance products or credit cards in the first quarter of 2008.

Mr Kuo asserted that while it might be tempting to do so, lying on applications would not benefit consumers in the long run. He suggested that instead people who have been refused credit should comprehensively evaluate their financial situation to establish why the provider identified them as a risky customer to give backing to. He added that every time an inaccurate application is made, the chances of it having a negative effect on personal credit ratings increases, with the possibility of people being denied credit in the future even if their financial situation improves simply because they had made fraudulent claims.

For those who are in need of additional finance in a tightened economic climate but who are finding it difficult to obtain credit, taking out a bad credit loan may be of assistance in providing the economic security necessary to start making regular payments towards household items of expenditure and begin to build credit ratings back up.

In total, there were 21,780 cases of fraudulent applications in the first three months of 2008, up from 19,239 at the end of 2007. The most common offence was failing to include previous address information where credit ratings had been impaired during the resident’s tenure. Peter Hurst, Cifas chief executive, said that many people felt the need to lie because the credit crunch had made obtaining financial backing more difficult.

To help people plan their finances more effectively, Mr Kuo advises setting a budget to limit spending. He added that if outgoings are greater than income then people really need to look to make savings as personal loans and credit cards become more difficult to obtain. Mortgage costs, fuel, food and transport bills were identified as key action areas for those looking to limit their monthly outgoings. For those who are struggling to manage their mortgage contributions, the Motley Fool boss advised customers to talk to their provider to see whether the term of the mortgage could be extended in order to ease the strain of monthly contributions.

“It’s not going to help you over the long term, because you will end up paying more, but at least in the short term it will reduce your monthly outgoings and just make life a little bit easier for you until you get over the problem and then you can go back to your mortgage provider again,” he suggested.

His comments follow recent findings from price comparison service uSwitch noting a 1.7 per cent increase in insolvency figures in the first three months of the year. Statistics suggest that as many 104,000 people could become insolvent over the course of the year.

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Expert Says Credit Card Firms Can Only Lend So Much

Tuesday, May 6th, 2008

Commenting on recent research suggesting that 18,000 people are refused credit daily, a spokesperson for financial advice resource Fool has said that there are limits on the amount that banks can loan in a tightened economic environment.

According to David Kuo, head of personal finance at the firm, today’s banks are operating in a more cautious economic environment and as a result are more reluctant to lend. unsecured credit was identified as an area of financial backing particularly constricted by the global uncertainty concerning economic stability. He added that while most banks do want to issue credit cards, there is a limited amount of money to lend. His comments came in response to figures published by Moneyexpert recently suggesting that one in fourteen consumers who had applied for credit in the past six months had been refused – a total of 3.24 million people throughout the UK.

Offering advice to those looking to obtain a loan or credit, Mr Kuo commented that it was important to assess objectively whether a loan is likely to be successful, with likely causes of rejection such as poor credit history or high levels of personal debt identified as an important factor to consider when making applications.

“Quite often you will know why youve been turned for a credit card and the answers are quite straightforward. [It could be] because you have excess amounts of debt compared to your income; that you have previously defaulted on credit card payments and maybe you have defaulted on payments other than your credit card bills,” he explained.

He added that it is important to find ways of repaying the debt before making a credit card application, with credit reports noted to be a valuable tool in assessing the health of personal finances and the likelihood of being accepted for a credit card. For those who are struggling with debt and have a poor credit history, a bad credit loan may be of assistance in helping to take control of personal finances, providing the liquidity to begin making regular payments towards debts and improve credit ratings.

Advising those looking to make an application, he stated that it is beneficial to think about personal finance from the perspective of the lender, with poor repayment history and large levels of personal debt said to be particular areas of concern for financiers. If this sort of examination is not made prior to an application, it is more likely that people will receive a refusal and damage their credit rating further.

Concluding, Mr Kuo commented: “People need to be very mindful of because every time you are turned down for a credit card application it counts against you on your credit reference. If people are going to be applying for a credit card then they need to make sure that they are almost certainly going to get it before they apply for it.”

Elsewhere, it has been revealed recently by financial services firm moneysupermarket that a growing number of Britons are racking up increasing debts in pursuance of lifestyle habits that are difficult to afford. According to the group, more than 2.7 million people are using personal loans to cover the costs of “keeping up appearances”.

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Good Credit Score ‘Is Important’ When Borrowing Money

Monday, March 17th, 2008

Those looking to take out a loan or any other form of borrowing need to ensure they have a favourable credit rating, it has been claimed.

According to moneysupermarket today’s “must-have accessory” is not a state-of-the-art technological gadget or a profile on the latest social networking site but rather a good credit report. The price comparison site stated that as the availability of cheap loans for many people diminishes an increasing number of people are recognising that a positive financial report can be of assistance when looking to borrow money.

Consumers were advised to make sure they carry out a credit check at least once a year by getting a copy of their report from a company such as Equifax or Experian. Perhaps stating the obvious, moneysupermarket claimed that “you can’t keep on top of your credit profile if you don’t know what it is” and that taking out a file can help identify and rectify any errors. In addition, those who have in the past filed for bankruptcy or had a county court judgment but are now aware that their period of insolvency has ended or their payments are complete should make sure that such settlements are now reflected in their file.

Making repayments on personal loans, credit cards and other types of borrowing on time was also put forward as a means of improving a credit rating. However, those consumers who are concerned that they may be unable to meet a demand for repayments were advised by moneysupermarket to get in touch with their money lender.

Enlisting on the electoral roll, being completely honest with applications for credit and avoiding making requests to borrow to “several lenders within a short period” were also put forward as means to improve a financial score.

And in taking the time to make sure that a credit report reflects them in the best possible light, borrowers may find that they are able to access cheap loans and other forms of competitively-priced credit with greater ease.

Tim Moss, head of debt at moneysupermarket, said: “People are really becoming aware of the importance of a good credit score. Credit agency Equifax has actually seen a 45 per cent increase in people checking their profile in January and February, and moneysupermarket’s SmartSearch facility has had a fourfold increase year-on-year. A fair or poor credit profile can make obtaining credit for everything from mobile phone contracts to mortgages much harder. Those that are accepted are likely to be offered a poorer rate.”

For people who in the past have experienced financial difficulties but are now confident of meeting demands for repayment taking out a bad credit loan may be of help. Such a loan could see those who have previously struggled with their money management be left with affordable repayments to make on the borrowing to help supplement their spending.

Earlier this year, Jim Hodgkins, managing director for CreditExpert, advised of the need for consumers to be aware of both their own and their partner’s financial rating when taking out a linked monetary product such as a joint bank account or loan. He said: “Regular credit report monitoring enables you to keep tabs on your own credit status and be aware of where you are financially linked to a partner via a joint credit agreement.”

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People ‘Can Still Get’ Loans

Monday, December 10th, 2007

Those requiring a UK loan should still be able to access the form of borrowing, an industry expert has reported.

According to Helen Saxon, spokesperson for the Finance and Leasing Association (FLA), the impact of the Bank of England’s five base rate rises since August 2007 has led many people to take the time to “stop and take stock of their borrowing”. Ms Saxon pointed out the subsequent increase in financial pressure that such increases have caused has seen growth rates in unsecured lending fall from 7.5 per cent down to 5.2 per cent in the 12 months leading up to June 2007.

Although she pointed out that some money lenders are withdrawing some of their non-standard deals, the majority of financial providers still have most of their products available and all those looking to apply for a loan should be successful in their application. “The industry’s aim is to make sure that no one is excluded from credit – in recent years much has been done in the name of financial inclusion,” the FLA representative added.

Despite the Bank opting to decrease the base rate of interest at the end of last week, which in turn might lower the rate of interest attached to personal loans and other types of borrowing, Ms Saxon advised that the public are generally looking to rein in their spending. She said: “Economic uncertainty is rising and consumer confidence is falling. Consumers may be more wary about taking out credit. However, for people who need to take loans out, the rate cut will be welcome news”.

The FLA spokesperson warned that as the effects of the global credit crunch begin to take hold, financial providers may tighten up the availability of loans, particularly in the short term. She added that the credit crunch may mean those who have a damaged financial history may discover that they are now deemed to be “higher risk” when they are looking to borrow. In turn, a bad credit loan could be one possible way for such people to get access to borrowing.

However, she stated that “there is no reason” for loan lenders to discriminate against freelance workers and those who are self-employed. Ms Saxon claimed that such people should still be able to get a loan as long as they are able to prove that they have a steady income and in the past have been able to meet demands for payment on utility bills, personal loans and other financial commitments.

Those consumers who have had previous struggles in managing their money may find that their access to cheap loans and other types of competitively-priced credit is curtailed as a result of damage to their financial record. Yet those who are worried that pressure on their spending is to increase over the coming months and are confident that they will be able to manage with future repayments may wish to apply for a poor credit loan. Such a loan could be helpful for homeowners as a study conducted by Vocalink earlier this year showed that more of peoples’ take home pay is being taken up by mortgage repayments. With this possibly impacting on consumers’ ability to meet other financial demands, an adverse credit loan could help many in getting back on their feet.

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Consumers Warned On The Dangers Of Loan Sharks

Wednesday, November 28th, 2007

With the festive season approaching, consumers need to be wary of unscrupulous money lenders, an industry expert has reported.

According to Steven Meale, trading standards manager for Bristol council, Christmas can often tempt many Britons to overspend and exceed their budgets. And although taking out a cheap personal loan can be one way in which to supplement spending, he told the Society Guardian that people need to avoid the temptation of borrowing money from loan sharks. The publication added that such providers are not licensed and often charge extortionate rates of interest. And as they may also use intimidation tactics to hassle borrowers into making repayments, those taking out a loan with these suppliers may well find that their money management problems are increasing.

Illegal providers were also purported to not provide borrowers with any written evidence of what they owe, meaning that they do not know when – if at all – they will be out of the red. In addition, the Guardian claimed that some victims of loan sharks have been drawn into crimes such as receiving stolen goods in an attempt to afford repayments. The publication added that those consumers who are on below average incomes were revealed to be at the greatest risk of being targeted by unscrupulous lenders. Meanwhile, the run-up to Christmas and the beginning of the school year are reported to be the peak times of year when those who are unable to access secured loans and other forms of mainstream credit are most in need of help with money.

Mr Meale told the Guardian: “Loan sharks can appear like a friend in the community who is there to lend a hand and step in if, say, the washing machine breaks down for example. Loan sharks may be held in awe in their community, they can be very well known and are often referred by friends. They can also have a very good knowledge of the benefits system. They can have a vested interest in making sure that their clients are claiming everything so that they can cream some of that income off.”

However, following the recent launch of a national advisory service, people across the country could be on track to receive better guidance in searching for cheap loans online from reputable providers. Mr Meale reported that the programme will not just prosecute loan sharks, but will also lend support to victims of such lenders and help them get back on a secure financial footing.

Martin Green, director of the Bristol Debt Advice Service, added: “We are over the moon that this project is underway; victims are often put under intense pressure and even when we are helping people deal with their debts they are still often reluctant to identify loan sharks. Hopefully this project will provide an outlet for them to come forward.”

As a result, those consumers who are concerned about their ability to manage their spending with yuletide approaching but who have also found themselves blocked from mainstream forms of credit may wish to apply for a poor credit loan. This type of loan could be particularly helpful for many Britons after a study by Callcredit indicated that 8.2 million consumers are developing financial difficulties, while 60 per cent claim to be unaware of the exact amount of money they owe. Consequently, Mel Mitchley, debt expert at Callcredit, advised people struggling with money management to be proactive in getting back on their financial feet, with an adverse credit loan one possible way of doing this.

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Fall Noted In Exeter Bankruptcy Levels

Thursday, November 15th, 2007

Those living in Exeter could be managing their money more effectively, new figures have revealed.

The news comes as research conducted by accounting and consulting firm KPMG indicates a drop in the proportion of people from the Devon city who are declaring themselves bankrupt, reports the Express & Echo. Between July and September, 116 cases of voluntary bankruptcy were filed – a fall of 24 per cent from the 144 noted from April to June. As a result, it could well be possible that more people are finding that they are able to make repayments on loans, utility bills, credit cards and other areas of financial demand with greater ease.

On a national scale, levels of voluntary bankruptcy fell by five per cent to 13,173 in the three months leading up to the end of September. Meanwhile, the proportion of people opting for an individual voluntary arrangement (IVA) also decreased. During the quarter a drop of two per cent was recorded as 10,652 opted for such a method of insolvency. As a result, IVA levels have decreased by 16 per cent over the course of the last year.

However, the accounting company advised that those people who are struggling with their finances should not take the news as a chance to rest on their laurels. According to John Bangham, director of personal insolvency from the Plymouth branch of KPMG, more consumers are to develop monetary difficulties in the coming weeks as insolvency levels are due to rise and the impact of the credit crunch makes it more difficult for people to access cheap loans.

Commenting on the figures, he said: “Despite the national fall in personal insolvencies, anyone taking comfort in this slight fall is in for a rude awakening. Almost every indicator suggests this trend as being only a temporary respite from long-term increases to record levels. It’s a temporary blip, the calm before the storm. People are going to find it very difficult to remortgage because of the credit crunch.”

Mr Bangham also reported that the number of house repossessions is set to increase in coming months. Although he claimed that this is “not directly related to bankruptcies”, once somebody has lost their home they often begin to think about filing for insolvency “very carefully” as they could well begin to develop difficulties in meeting repayments on personal loans, utility bills and other types of spending. As a result he added: “It will be of interest to see what happens in the next quarter.”

With consumers possibly set to face a rise in financial problems those looking to get to grips with their spending, but who have experienced difficulties with paying back borrowing in the past, may wish to consider taking a bad credit loan. And such a loan could be especially advisable as a recent study by the Council of Mortgage Lenders (CML) shows that repossessions are to increase by 15,000 by the end of next year. Meanwhile, research from the CML also revealed that the number of three-month mortgage arrears is set to rise to 170,000 by late 2008, which could also see many people struggle to manage their finances.

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People Struggling With Debts ‘Need To Be Proactive’

Wednesday, October 24th, 2007

Consumers need to adopt a more hands-on approach to managing their money, it has been suggested.

According to research conducted by Callcredit, millions of Britons have developed serious difficulties in making repayments on their borrowing, whether this is through personal loans, overdrafts or credit and store cards. It is reported that some 8.2 million adults are currently experiencing particular financial hardship, while 2,750 county court judgments are filed in the country everyday. Overall, the majority of Britons (60 per cent) state that they do not know how much they are in the red by. Meanwhile, debt difficulties could be even more pronounced for the 15 per cent of consumers who openly admit that they do not have a clue as to how much they owe.

The credit reference agency also pointed to findings from the Consumer Credit Counselling Service (CCCS) which indicated that a “shocking proportion” of older people are experiencing hardship in managing personal loan responsibilities and other forms of debt. According to the service, the proportion of those above the age of 60 who have monetary problems rose at the fastest rate of any demographic over the course of 2006. The organisation also forecasts that by the end of this year, it will be helping more of the over-60s manage their finances than it does with people under the age of 25.

As a result, Mel Mitchley, debt expert at Callcredit, urged those people who currently are finding themselves struggling to handle their finances to be proactive in getting back on their feet. She advised consumers against being a “financial ostrich”, asserting that they should take their heads out of the metaphorical sand and get a copy of their financial history. By doing so the industry expert reported that borrowers will be able to identify how much they are in the red by and to which lenders they owe money.

Once this is done, Ms Mitchley advised that consumers should get in touch with their credit providers to draw up a repayment schedule. However, should they find that they are still experiencing difficulty in meeting demands for payment on personal loans and other types of borrowing, getting in touch with a professional guidance organisation, such as the CCCS, was recommended.

In addition, those considering applying for a loan were advised to ensure that they have a copy of their credit history and to take the time to scour the market so as to get the best deal possible. However, prospective applicants were also encouraged to ask themselves if they truly will be in a position to afford to meet monthly demands for repayment before taking out a loan. The drawing up of and the sticking to a budget was also recommended as a way in which to avoid developing unmanageable debt problems.

Meanwhile, research conducted by Wilkins Kennedy earlier this year revealed that the proportion of retirees filing for bankruptcy has more than doubled during the last five years as they struggle to make payments on personal loans, utility bills and other constraints on their spending. However, after experiencing problems such as insolvency consumers who look to borrow again could find that previous difficulties with money have cut off their access to cheap loans due to their credit report being damaged. As a result, applying for a bad credit loan may well be an advisable option way for these people to get help with their finances.

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