Tag Archives: loans

Transform Your Nest into a Pot of Gold

A few decades back, when a person retired, he / she did not have to worry much about expenses and how to meet them. The average amount of money that a working individual could save was enough for the retirement years. With the increase in the cost of living and the lack of a proportionate increase in the family income, it has become a difficult task for retired people to make ends meet.

The situation is a bit easier for the home owners. They can release the equity on their home and use the cash received for their other expenses. Equity release plans are a way through which older home owners can unlock a part of the money tied up in their property and get some tax exempted cash. The equity release schemes are of two kinds – life time mortgages and home reversion plans.

Life time mortgages are the most popular plans and the majority of those who are going for equity release are opting for this. Under this plan, you would take out a loan on your property which will be paid off after the death or removal of the last surviving partner to a retirement or a care home. Thus there won’t be any monthly payments to worry about. After your demise the equity provider would sell the property, take their share and give the remaining amount to the rest of your family.

There are several benefits of this plan. You can release the equity on your property even at the age 55. If there is any price rise in the real estate market in the mean time, then you will benefit from it. You will get a fair estimate of the amount you can expect to receive from the scheme. Your property might generate enough money to leave some for your family and pay off your mortgage.

However, there are some disadvantages that you have to consider. The interests are compounded and thus the debts keep mounting. Therefore, you might not have any money left for your heirs after paying off the mortgage. You cannot pay off the debt before time. If you do, then early repayment charges will be applicable. Equity release on property may also disqualify you for any government pension grants.

The other equity release plan is the home reversion plan. Under this plan, you can sell the entire or a portion of your home to a home reversion company. When you sell part of it, the other part will be held in trust for you. When you sell to a reversion company you will get lump sum cash from them and the right to live in your own home rent free. After your death or removal to a retirement home, your property will be theirs. If you sell part of your home then they will sell that part and pay off the mortgage. The remaining will go to the trust. One major advantage is that you will know the exact amount of money that you are leaving for your heirs. But then you will become a tenant in your own home.

Author bio:

Jonathan is a freelance financial adviser. He has recently started writing articles and blogs. Here he talks about the advantages and disadvantages of the equity release on property plans.

Financing Your Business: Business Loans & Cash Advances

Find out how you can finance your business with Creditwindow.

There are a number of ways you can finance your business – whether you’re just starting out or whether you’re looking to take your business to the next level.

Unfortunately, with the state of British banks, business loans have been far harder to come by as high street banks simply will not lend, which is why Creditwindow is seriously starting to look at how we can help British SMEs get back on their feet.

Currently we’re offering a business cash advance through Working Capital – a company that can give businesses up to £500,000. To find out more about how this works please read “Creditwindow expands into business finance.”

We are also looking at more traditional business loans that are offered through banks and lenders who are willing to fund small businesses.

Let’s face it – both the Government and Bank of England claim that small business growth is the key to getting out of the economic downturn, however, they are doing very little to aid this growth.

Here at Creditwindow we believe in British business and we intend to do everything we can to find the best sources of finance for you. Keep an eye on our business loan section. We understand that one form of finance may not suit every business but we will continue to work towards supporting small business throughout the UK.

Images from FreeDigitalPhotos.net

Wonga Payday Loans... For Business?!

When I read that Wonga were entering the business loan sector I have to admit I laughed to myself… especially if their business loans work in the same way as a payday loan.

Well I took a look at the website and I was… not surprised. It’s essentially a duplicate of their standard website and they use the same “slider” system they have on their payday loan counterpart.

With a lot of businesses facing another recession and difficulty in obtaining finance the idea behind Wonga business loans is a good one, however, I have a feeling that they should be turned to as a last resort – much like a payday loan. In fact the Financial Times have already said that businesses face yearly APRs of 280%… cheaper than a payday loan but still a bit concerning when you compare it to a standard unsecured loan.

However, I’m not one to go off on an tirade like an angry politician or an ambitious journalist. I believe that there is space for an alternative form of finance for businesses – whether they turn to a Wonga business loan or look to a business cash advance.

Wonga are offering up to £10,000 over a loan period of 10 – 52 days (seems a bit short to me) and is a relatively quick, painless process.

For a small business unable to obtain credit it may be worthwhile checking out their business loan offering… it could mean the difference between business growth and stagnation. If I were in a situation where I needed this type of loan I’d certainly consider it as an option.

Creditwindow Expands Into Business Finance

Creditwindow announced their expansion into business finance today to help the millions of businesses in the UK struggling to find credit.

Creditwindow is proud to announce the launch of it’s business finance section.

“With the economy and lack of true financial support for small and medium sized businesses in the UK the decision to expand into business finance was a logical progression for the firm,” a spokesperson for the company announced today.

In recent years, following the onslaught of the 2008 / 2009 “credit crunch” small business owners have struggled to obtain valuable credit or business loans for their firms. Whilst business loans do seem to be an obvious choice for many it is a long-acknowledged fact that the British banks are still unwilling to lend – or at least lend at a reasonable interest rate.

There are of course alternatives to small business loans – such as business cash advances – which is Creditwindow’s first commercial finance product.

Unlike business loans, a business cash advance is a way of converting future credit card receivables to cash with no fixed monthly payment. In addition to this – rather than charging an interest rate as such the finance firm merely take a small percentage of the business’ credit card sales to help repay the cash advance.

Whilst Creditwindow acknowledges that this might not suit every business it could ultimately benefit those who are struggling to find an immediate source of funding.

Currently the business cash advance firm Creditwindow works with can give small businesses up to £500,000 – a considerable sum of money.

To find out more please visit our Business Loans section.

Simplifying credit cards - bringing them back to basics with Creditwindow

Let’s bring the whole credit card concept back to basics…

Simply put – a credit card is a form of loan. The credit card company / bank basically provides you with the credit card sets a limit on the amount you can spend on the card – known as your credit limit.
The credit limit is based on your annual income and credit score. You are entitled to use as much or as little of the available amount as you wish. The credit card’s interest is charged on the amount you have used, not on the credit limit itself (unless you have borrowed right up to that limit).

Whilst you could simply apply for a credit card through your bank you can also apply for a credit card online, and a credit check will be carried out as part of the application process.

It’s worth remembering that when you use your credit card to purchase something or to take out a cash advance you are basically borrowing money from the credit card company. Just like an unsecured loan, you have to pay back any money you borrow back as well as pay the necessary interest and associated fees on the loan for the convenience of using the card and the benefits it offers.

Every month you will receive a credit card statement that shows you exactly what you have spent and where. The statement will also tell you how much you need to repay by the due-date. It’s worth bearing in mind that, although the statement will show you the minimum amount you need to repay, you do have the option of paying more and should repay back what you can, especially since this will help to improve your credit score.

You have a set period to make the necessary repayment on your credit card (usually two to three weeks). If you do choose to repay the outstanding amount in full, you will not accrue further interest on the amount you borrowed. Otherwise, you will be charged interest on the amount left unpaid, and that interest will appear on your next statement along with the unpaid balance and any additional purchases you have made on the card since the previous payment date. It can prove risky to allow your credit card to build up interest and you could end up paying back far more than you originally borrowed – this is why it is so important to stay on top of your credit card debt.

All credit card firms and banks have a duty to make their terms and conditions clear. It is extremely important to go over the small print before you commit to taking out a card.

Here at Creditwindow you will find a range of credit card providers and can click through to learn more about each one.

Payday loan APR can be pretty confusing - check out Creditwindow's quick guide to annual percentage rates and find out more.

Did you know the payday loan annual percentage rate (APR) is probably the most controversial thing about payday loans? Well this is the one thing the back-bench politicians focus on because they want to further their careers by starting another pointless crusade…

Let’s take a minute to really take a look at the thing they’re all moaning about.

What is payday loan APR?

An APR or “annual percentage rate” is basically the interest payable on the amount borrowed and other related charges.

Payday loan companies are compliantly obliged to display what’s known in the industry as a “representative APR” or “average APR” – essentially a rate that applies to at least 51% of succesfull loan applicants.

What is included in a payday loan APR?

The interest you have to pay.
The length of the payday loan agreement, timing and frequency of repayments, as well as the amount of each payment.
Certain fees associated with the loan – such as administration costs.

An APR assumes the rate of charge over a 12 month period and therefore shows interest and fees as an annual rate and all lenders, regardless of whether they’re payday loan companies or banks are required by law to tell you what the APR is before signing what’s known as a consumer credit agreement.

So – what’s the problem with showing the APR for a payday loan? Well it’s not really representative… at least not in the same way as a standard bank loan.

A payday loan is a short-term solution that can be taken out for any financial emergency, unexpected bill or if you simply need a cash top-up before payday.

Payday loans tend to have a life-span of 1 month – hence why a 12 month APR doesn’t really apply to this form of lending.

If you think about it – a loan that you pay back after a month only requires a fraction of the 12 month APR displayed when you succesfully apply for a payday loan. For example, if you take out a Payday UK loan over a month then, for every £100 borrowed you only pay back around £25 in interest on top of the £100. Granted you’d be paying back £300 on top of the £100 you borrowed if you repaid this back over a year – but who in their right mind would want to do this anyway?! This is why payday loans have a bad reputation and why you see APRs of 1000%+.

So – ask yourself, if I need a small, quick loan are payday loans as bad as they say?

Check out these top ten reasons why payday loans could be the right short term loan for you.

Okay – no doubt you’ve come across payday loans before, and even if you haven’t – you’ve probably heard of them.

They’ve been around for quite a few years now and, whether you know them through Wonga, PaydayUK or QuickQuid, their adverts are all over the place, be it on TV, billboards or even on the London tube!

But have you ever considered taking one out? Well, if not then check out Creditwindow’s top ten reasons why payday loans could be the right short term loan for you:

1. Payday loans are fast

Did you know that, once you apply, you could be approved within minutes? With the majority of payday lenders, such as PaydayUK and Wonga, you simply need to enter your bank account details and voila! Simple.

2. Safe and Secure

Creditwindow’s list of approved payday loan companies all have a completely secure application process using the likes of SSL security to ensure your sensitive details cannot be accessed by anyone other than the payday lender processing your payday loan.

3. Get up to £1,000 payday loan

You can get a payday loan from as little as £80 to as much as £1,000, depending on your circumstances. It’s easy – just click on one of Creditwindow’s approved payday loan lenders and find one today!

4. No credit checks

Most payday loan companies understand that everyone needs a hand now and again – even those with poor credit scores. Let’s face it – if you’re looking for a payday loan then the chances are your credit score isn’t looking so hot… payday loan companies will not run a credit history checl but will process your application based on other information such as income, employment status and a valid bank account with debit card.

5. Same day payday loan deposit

The top payday loan lenders out there can offer a faster payment service that allows customer to get a loan within hours rather then having to wait a day or two for the money.

6. Payday loan in a hurry – emergency situations

A payday loan could be the perfect solution to all sorts of cash issues that may arise, from car or house repairs to unexpected utility bills or even travel expenses. Whatever your reason – a payday loan could be ideal to help meet some of those unexpected problems that may arise.

7. Improve a poor credit rating

Did you know that everytime your pay off a payday loan this is reported to a credit referencing agency, such as Experian or Equifax? Well – this goes towards rebuilding your credit score and could go towards helping you secure other forms of credit such as credit cards, mortgages or unsecured loans.

8. Straight-forward, affordable interest rates

It’s true – believe it or not. Most lenders charge between £20 – £25 per £100 borrowed. So – you borrow £100 at the begining of the month – you only pay back £120 on your payday. Remember – the high APRs splashed across payday loan sites are really not representative of the actual amount you pay back. APRs tend to be a measurement over a twelve month period – a payday loan only lasts a month, therefore you don’t come anywhere close to paying as much as this in reality!

9. Responsible lending

Creditwindow’s panel of payday loan lenders have been carefully selected to ensure they are legitimate, compliant and adhere to responsible lending. The payday loan lenders on Creditwindow will not let you pile up debt and get into financial difficulties but will work with you to ensure any debt is controlled appropriately.

10. Payday loans are an easy option

Payday loans are a straight-forward, no nonsense option that bypasses a lot of red-tape that you would normally need to go through to obtain a regular unsecured loan or credit card. Whilst we appreciate it’s not the best option for everybody it’s certainly worth considering if you need funds quickly.

RBS Offers Interest Free Loans To Small Businesses Following Riots

Following the recent riots, the Royal Bank of Scotland is offering small businesses affected by the riots, interest free loans of up to £25,000, in addition to this they are said to be fee free to help small firms get back on their feet.

These “relief loans” are designed to give RBS’s small business customers the chance to acquire short-term assistance whilst they get back on their feet and start trading again.

The loans are set-up to last over a 6 month period, after which the small businesses are either expected to repay the loan taken or transfer to other loan products offered by RBS.

The Chief Executive of RBS, Chris Sullivan, stated that the bank wants to do everything it can for firms affected by the recent riots, adding:

“These loans will help firms waiting for insurance payments or needing urgent repairs to open for business as soon as possible.

“I hope that other banks will also be able to help small businesses recover. Our high streets are vital for local communities and the economic recovery.”

The Federation of Small Business (FSB) has welcomed this news as it means that many badly affected firms will receive badly needed funds to “get back up and running again.”

When a Scottish Trust Deed Might Help With Debts

Guest blogger Simon Wyllie suggests that Scottish Trust Deeds could help get you out of debt.

As households throughout the UK come under increasing financial pressure, it’s unsurprising that an entire industry has developed which advertises solutions to deal with unmanageable personal debt.

Many people remain unaware however that where you live in the UK determines which options are available to you. Residents of Scotland have access to a variety of measures to deal with debt difficulties that are unavailable in the rest of the UK.

A trust deed (often also referred to as a “protected trust deed” or a “Scottish trust deed”) is one such option. Trust deeds exist as an alternative to bankruptcy for residents of Scotland suffering from serious debt problems.

The marketing of trust deeds has caused some issues. Certain debt-help providers advertise them as being an easy way to escape from debt and to have much of it legally written-off. This view downplays the serious nature of a trust deed; it is a formal insolvency measure in many ways similar to bankruptcy and it should always be viewed as a last resort.

However, for anyone with serious debts that simply cannot be repaid within a realistic timeframe by other means, a trust deed might well be appropriate.

When signing a trust deed you appoint a “Trustee” to supervise your financial affairs for a fixed period (which is often three years). You commit to paying over your surplus income each month and also to paying over the value of any significant assets that you currently own (or may acquire during the trust deed term).

Due to the requirements connected to assets, homeowners should be cautious about their position prior to signing a trust deed. If they have equity in their home they will need to pay over the value of that equity. However, refinancing during a trust deed to release equity is currently virtually impossible. This may mean that some homeowners with equity may have to review other options to deal with their debts.

The technical nature of the trust deed process and trust deed guidance/legislation means that many people have questions that they need answering before they are prepared to go ahead with this debt solution option. In such circumstances making use of a trust deed forum might be appropriate as it enables the provision of expert trust deed advice alongside the shared personal experiences of individuals that are at various stages of the trust deed process.

Guest Blogger:

Simon Wyllie

Trust-Deed.co.uk

Rise in mortgage payment affects debt management plan

The wrath of global recession looms over the homeowners and the magnitude of this crisis continues to unfold. People who are paying less in terms of mortgage payment might be disappointed to find that the base rate will soon rise. Homeowners who can still manage their payments might find it difficult to pay off when their payment increases.

Many homeowners might default on their mortgage payment with the rise in the mortgage rates. If you cannot afford a mortgage payment then you need to take help from an expert to avoid the problems in future.

Can rise in mortgage payment affect your debt management plan?

You might panic as the rise in the mortgage payment might affect your debt management plan as that restricts your ability to accelerate the reduction of your debt. But you might be aware that a debt management program does not have a rigid plan. Make sure that you adjust your debt management plan according to your financial situation so that you can avoid missing your payments.

If your debt management payment needs to be lowered to make it affordable then your creditors might terminate the terms of negotiation. Therefore, you have no other alternative than filing bankruptcy.

You can discharge your unsecured debts by declaring bankruptcy. It helps to put an end to the illegal collection practices of the creditors by filing bankruptcy.

But you should be aware of the adverse impact of bankruptcy on your credit report. Filing bankruptcy damages your credit report for 7 to 10 years. During this period you will not be able to get any loans as the creditors might consider you high risk borrower. You should also know that the court appointed trustee will sell your property and fund raised from it will be disbursed among the creditors to pay off your debts. Therefore, you might lose your valuable possessions. Declaration of bankruptcy will also ruin your professional career.

About author: This article is written by Christina Jones, who is a financial content writer associated with Oak View Law Group. You can contact her here: christina.jones60@gmail.com

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Tag Archives: loans

Transform Your Nest into a Pot of Gold

Financing Your Business: Business Loans & Cash Advances

Wonga Payday Loans… For Business?!

Creditwindow Expands Into Business Finance

Credit Cards – Back To Basics

Understanding Payday Loan APR