Monthly Archives: December 2011

Payday Loans On The Cards For Millions Of Brits

Payday Loans On The Cards For Millions Of Brits

Insolvency experts are expecting to see an increase in British consumers taking out payday loans over the next six months or so.

With the impact of high inflation, low income and high unemployment, many British consumers are expected to turn to payday loans to last them until payday, insolvency experts have claimed.

Insolvency experts, R3 have reported that they expect the number of people taking out payday loans to increase based on the responses of 2,000 people.

The survey by R3 showed that 60% surveyed were concerned about their level of debt and, probably more worryingly, 45% struggled to make their money last until payday. This actually increased to 62% for 24 – 44 year olds.

The £2 billion-a-year payday loan industry is thought to be a cheaper alternative to than going overdrawn or facing a credit card charge, hence why they are becoming more popular than ever.

However, consumers are urged to ensure they re-pay the short term loans back as quickly as possible, otherwise they could end up facing more expensive roll-over, monthly charges – known as deferrals in the industry.

With the increasing number of people turning to payday loans, otherwise known as payday advances, both politicians and insolvency practicioners are becoming increasing concerned about the number of people falling into debt. As a result they have called for a standardised industry code of practice to be introduced to help ensure that customers are treated fairly.

In spite of this the majority of authorised payday lenders, such as Wonga.com, PaydayUK and QuickQuid, are members of the consumer finance organisation, an authority that strives to regulate payday loan firms and other financial organisations that are not necessarily controlled by the Financial Services Authority (FSA).

This writer has a feeling that 2012 will prove to be a very interesting year for payday loan firms, especially now tighter regulations are being called for from all sides…

The Slice

Economically Did David Cameron Make The Right Decision For The UK?

Economically Did David Cameron Make The Right Decision For The UK?

Economically Did David Cameron Make The Right Decision For The UK?

Following David Cameron’s refusal to sign the EU treaty, the question over whether he did the right thing for the UK has been debated to quite an extent over the past week or so and many still appear unsure.

Let’s take a look at a quick summary of Mr Cameron’s decision:

The EU treaty promised no concessions to the UK yet Europe wanted the UK to help bail them out of a mess created by the european currency.

If David Cameron had signed the treaty the UK would have resulted in the UK submitting our entire national budget to the European Commission. In essence we would have been relinquising our sovereignty to an all-powerful European super-power.

Mr Cameron’s decision not to back the treaty was to protect British interests – not European.

Even pro-European, Nick Clegg supported David Cameron’s decision on this by commenting:

“The demands Britain made for safeguards, on which the coalition government was united, were modest and reasonable. They were safeguards for the single market, not just the UK.”

The important thing to note in all of this – in spite of the state of the Global economy, The UK is still a financial super-power with a large percentage of the World’s market operating from London. Allowing Europe to take control of our national budget would be, not only economic suicide, but would also lead to a loss of our identity as British citizens. We would merely become citizens of a European super-state.

Call me a euro-sceptic if you like but let’s face it – would you want to be lumped into a european economy with the poor state of the likes of Greece and Portugal?

Irregardless of that it is important to note that David Cameron does support the need for stability for the european economy (euro) as it is in the UK’s interests.

I’ll be watching this space over the next 6 – 12 months. Let’s hope David Cameron doesn’t buckle under pressure… or worse, lose the election to Ed Milliband. Then we’d all be screwed!

Don’t Let Your Payday Loan Debt Grow

British consumers turning to payday loan companies for a quick finance fix are being warned to repay the money on time or risk facing high interest repayments.

According to insolvency professional trade body, R3, over 2 million people have turned to payday lenders such as Payday UK and Wonga over the past year. Many customers are drawn to the convenience of borrowing relatively small amounts (between £80 – £1,000) and, in some instances, the payday loan can be in the customer’s bank account within 24 hours.

Whilst borrowing a payday loan can prove cheaper than accessing an unauthorised bank overdraft the interest can accumulate quickly if the money isn’t repaid on time.

For example, Wonga have suggested that a standard payday loan of £100 could result in a repayment value of £187 if no repayments were made for 2 months or more. If the customer continues to default the debt is usually handed to a debt collection agency who will add on admin fees as well – driving up repayment costs further still.

One finance expert commented:

“There is a real danger that customers could fall into a spiral of debt where they have to take out a loan each month just to make ends meets. The golden rule is not to borrow money unless it is absolutely necessary.”

Credit cards – in this economy?!

Are credit cards really the best solution in an economy ravaged by debt? That’s a good question and while credit cards might not be suitable for everybody and in every instance there is still a place for them, even in this post-recession, fragile economic state the UK has found itself in.

What benefits are there to having a credit card?

Get stuck in and read our top reasons to own a credit card, other than to lend you money… you may be surprised in what you learn.

1. Credit cards, when used sensibly, can help to repair a damaged credit rating. Even if you get a high-interest credit card, when used in moderation and, as long as you pay off debts monthly, you could see your credit rating sky-rocket!

2. Using balance transfers to pay off other debts could benefit you as, usually, it proves cheaper to pay off debt on a credit card as interest rates tend to be lower.

3. Use credit cards to help spread the costs – especially if you need to buy expensive goods or services but can’t pay-off in one go.

4. Earn cashback with credit cards, as long as you pay off credit card debts on a monthly basis.

5. Get exclusive discounts on certain goods or services with a credit card – many cards offer this service and certainly worth shopping around for to make sure you get the best credit card to suit you.

Whilst all of these are valid reasons to own a credit card Creditwindow understands that not everyone has a great credit score and it can prove difficult to obtain the one you want. As a result we have included a great list of both premium rate and poor credit score cards – check them out and find a credit card to suit your needs.

Quick Short Term Loans Easier To Obtain Than Ever

Applying for quick, short-term loans has never been easier. With more and more payday lenders and other providers offering quick loans through the internet, obtaining a loan can, in many cases, be even easier. You could even get the cash into your bank account on the same day you apply for it!

Whilst payday loans get a lot of bad press it’s worth bearing in mind that they do serve an essential service to many people, especially those with poor credit scores, unable to take out credit cards or other types of loans.

It’s not always easy to balance your finances when there are so many bills and other outgoings over the course of the month, possibly made even worse by other unexpected costs (for example, your car breaking down).

When you don’t have access to credit cards or an overdraft facility on your bank account and you’re being faced with unexpected costs it’s important to have something you know you can rely on. Applying for a poor credit loan or payday loan could help you to bridge that gap until your next payday.

To find out how you can improve your credit score why not check out our other articles:

What is a credit rating and how does it effect me?

Five top tips to improve your finances

Checking your credit score and keeping it high

Which Loan Is Right For You?

Which Loan Is Right For You?

Which Loan Is Right For You?

There are many different types of loans available on the market today. Each one has its pros and cons, depending on your personal circumstances. Creditwindow works closely with a wide range of loan and credit card providers who offer various different financial products. In addition to this, many of our lenders will even consider applicants who have a poor credit history.

  1. Payday Loans
  2. Personal Loans
  3. Guarantor Loans
  4. Logbook Loans
  5. Credit Cards
  6. Debt Consolidation Loans

1. Payday Loans

A payday loan is a fast, short-term solution to a temporary financial problem such as car repairs, unpaid bills, etc. You only borrow the money for a few weeks, so you’re not being faced with long-term debts, as you would with a longer term solution such as a guarantor loan.

Most payday lenders offer loans between £80 and £1000, as long as you meet their lending criteria and can demonstrate that, when payday arrives, you will be able to repay the debt plus the amount of interest charged. Payday loans are easy to apply for and the money is paid direct into your bank account the same day (with few exceptions).

2. Personal Loans

A personal loan is a way of borrowing money over a fixed period at an agreed interest rate. You repay a fixed amount each month (or each week, with some loans), which includes part of the capital borrowed plus interest. Personal loans are usually taken out for periods of between one and five years.

Most personal loans are for larger sums than that offered by payday loans, between £5,000 to £15,000 is common. There are two types of personal loan; secured and unsecured. With a secured loan you use an asset, such as your car or your house – as security on the loan, and if you don’t repay the loan you could lose that asset. With an unsecured loan you do not need to provide any form of security. Personal loans have much lower interest rates than payday loans, logbook loans or credit cards.

3. Guarantor Loans

A guarantor loan is another form of personal loan – usually up to £3,000 (but some lenders can offer more). Unlike secured loans you are not asked to provide any collateral as security. Instead, you are asked to provide a guarantor; somebody who knows you and who is willing and able to pay the loan if you are unable to do so.

The guarantor should be someone who knows you very well, a close friend or even a member of your family, for example. If they agree to act as your guarantor, they trust that you are able to repay the loan but they accept that there may be a risk that they will need to pay it if you fail to do so.

4. Logbook Loans

Logbook loans are a short-term solution without the need for credit checks. Instead, the logbook loan is secured against your car or van, which you can still drive throughout the loan period.

Depending on the value of your vehicle, logbook loan providers can lend anything between £500 to £100,000 (in very few instances) which you repay over an agreed period, making regular repayments on a weekly or monthly basis. Logbook loans are usually paid out on the same day that you apply, which is perfect in an emergency. If you fail to repay the logbook loan, you run the risk of the lender repossessing your car.

5. Credit Cards

When used responsibly, a credit card is a really useful, easily accessible way of borrowing money, as well as being a secure way to pay for items. If you repay the balance in full each month you could use your credit card to borrow money interest-free for an extended period, and some credit card providers offer a range of other benefits,
such as cashback, air miles, points for loyalty schemes, product discounts, etc.

Credit cards are accepted by many different types of online and offline retailers, including shops, pubs, petrol stations, cinemas, etc. Credit cards can often be used all over the UK as well as abroad. In addition to this you also have the option of using credit cards to withdraw cash from cash machines.

6. Debt Management Loans

A debt management loan consolidates numerous debts into one manageable cost. It covers the total cost of all your other loans and debts, including early settlement charges that you may incur. Essentially all your other loans are settled by a debt management company and you pay that company each month rather than each of
the individual lenders.

If you’re juggling a number of debts, with differing interest rates, to a
variety of lenders, then having just a single payment is much easier to handle. In addition to this, depending on the interest rates you are being charged by those original creditors, a debt consolidation loan could prove to be a much better option, as the rate could be much lower.

Payday Loans – A Short Term Solution?

More and more UK borrowers are being turned down for credit right now. However, that doesn’t hide the fact that we all need a little financial help now and again, especially as we emerge from one of the worst recessions in history. So, when you need extra money to pay for unforeseen expenses there is certainly no harm in considering a payday loan as a viable option.

The vast majority of people are usually accepted for payday loans without a glitch and you don’t need a great credit score. The only real lending criteria you need to meet to get a payday loan is a full-time job with a moderate salary, to be a permanent UK resident, and to be over 18.

But what kind of things should you consider taking out a payday loan for? Well they can be used for practically anything – from funding a short break to seeing you through until the end of the month when funds are tight. But here’s a list to give you some “food for thought”:

  • Petrol costs
  • Utility Bills
  • Groceries
  • To assist with mortgage repayments
  • and more…

To find out more about payday loans please visit Payday Loans – More Information.

What to look out for when getting a payday loan

Taking out a payday loan can seem a foreign concept to many of us, however, at some point in life, almost everyone has experienced a financial downturn at one time or another. Unfortunately there are situations when quick money is needed, whether to pay off unexpected bills or when financial demands simply come out of the blue!

It’s in situations like these that payday loans can prove to be a useful solution. A payday loan is essentially a short term loan that last for around a month and is useful for people looking for quick cash to bridge the gap until payday.

In recent years payday loans have become more and more popular as payday lenders never credit score and very rarely ask to see documentation. Once approved the loan can be in your bank within 24 hours.

When shopping around for a payday loan there are a number of points you should look at carefully:

1. The total amount the payday lender is willing to give you. Details on this must be included in the agreement.

2. Payday loan charges. Lenders can include a range of charges, fees and interest rates over the lending period. Always shop around to ensure you’re getting the best deal for you.

3. The APR (or Annual Percentage Rate). This can prove an excellent way of comparing payday loans, however, it’s worth bearing in mind that an APR is a measurement of a yearly loan. Payday loans are monthly and therefore an APR isn’t always the most accurate measuring tool.

4. Available repayment options. Repayment is traditionally set for payday – typically a month after you’ve taken out the loan. However, should it prove difficult to repay the loan you can defer repayments and pay-off in instalments.

Security firm urges caution over online credit card spending

People using credit cards have been cautioned over giving out personal information to the wrong sources whilst online.

Security expert with Norton (the anti-virus firm), Con Mallon, has warned that people who use social networking websites such as Facebook as the most at risk since they are more likely to give away personal details without knowing.

Mr Mallon commented:

“Be careful about what information you post online on social networks such as Facebook, don’t willingly give out banking or credit card details – particularly over the phone. Keep your passwords safe, and make sure your computer is up-to-date with the latest security software.”

In addition to this, the increasing use of online banking has also raised security concerns about personal details being exposed to credit card fraudsters. Consumers are being recommended to to check their balances on a regular basis to ensure they have not been hacked by cyber criminals.

Norton is recommending that consumers do not access their online bank account via unsecured wireless networks or public portals. The most recent Norton Cybercrime report has revealed that almost 60% of consumers in the UK have been affected by credit card fraud and identity theft.

Guarantor Loans – what are they and how can they help?

With the introduction of Guarantor Loans, finding an unsecured loan despite a poor credit score has become even easier than ever before.

Guarantor loans are a specialist form of personal loan that allows borrowers with a weak credit history to get a loan of between £1000 – £3000. As long as you can find someone to act as a guarantor and back your application then there is a strong likelihood that you will be accepted and allowed to borrow an agreed amount.

Since Guarantor loans are effectively an unsecured loan, meaning that the loan isn’t secured against property or some other asset, they are particularly well suited to the following types of individuals:

  • Homeowners – with equity or without in their property
  • Tenants – either private of local council authority
  • Borrowers co-habiting with members of their family

Most importantly credit scores are not used to underwrite a guarantor loan application and, in each case, many lenders will review each case. This is always carried out by a financial expert who understands the lending industry and issues faced by many consumers, especially in the current economic climate.

Alternatives to Guarantor Loans:

Payday Loans

Logbook Loans