Tag Archives: personal 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.

Managing Debt Effectively – Its Easier Than You Think

Managing Debt Effectively - Its Easier Than You Think

Managing Debt Effectively - Its Easier Than You Think

If you have mounting debt in the form of credit cards, personal loans, backed-up mortgage repayments, etc, then it can be a really daunting task when it comes to paying it all off!

So what can you do to help make managing your debt easier? That’s a good question and it’s not always the easiest one to answer – usually people opt to approach a debt management service, however, it’s important to consider all your options first.

What This Article Is

This article is a resource to find out how you can get your personal debt under control, offering free and impartial advice.

What This Article Is Not

This article, although will offer recommended firms to help manage debt, is not solely focused on this. It should be made very clear from the start that debt management programmes can benefit some people but is certainly not appropriate for everyone.

Don’t Ignore Your Debt

1. Try To Meet At Least The Minimum Repayments

2. Debt Counselling – some charities offer free debt counselling to people and they can give excellent advice. Try talking to the Consumer Credit Counselling Service.

3. Increase Your Income – whether that means getting an additional job, finding a new one or even asking for a pay-rise.

4. Consider switching utilities providers (gas/electricity) – shop around and see what’s out there!

5. Remortgage Your Home Or Trade It In For Something More Affordable.

6. With the ever growing price of fuel you could consider downsizing your car to a more economical model.

7. Stop gathering new debt – cut up those credit cards and stop taking out loans!

8. Cut out those vices – consider giving up cigarettes, alcohol or whatever (on average a pack of 20 cigarettes costs £5 – £6 a time – think about how much you could actually save in the longer-term!)

9. Prioritise your debt payment – get the most urgent debt paid off first.

10. If all else fails you could consider a debt consolidation plan where you consolidate all your existing loans, credit card debt, etc, into one, easy to pay, lump sum.

What Is Debt Consolidation?

Debt Management or “consolidation” is simply a method of putting all your existing debt (i.e. credit card, loan, mortgage, debt) into one lump sum.

In effect a debt management company will arrange a repayment plan where you pay everything off over a period of time. Usually you will find that the debt firm offers a good rate of interest (APR – Annual Percentage Rate) that will help keep repayment costs reasonably low – as long as you keep paying it on a regular basis.

As long as you avoid getting into more debt (cut up those credit cards or at least hide them away!) you should have your debt paid off reasonably quickly.

However, whether you take a debt management plan or not, it’s certainly worth following the ten points mentioned previously as this will help cut spending and help you live within your means.

Find a debt management plan to suit you

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

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

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.

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

Poor Credit Rating? Consider A Guarantor Loan

Poor Credit Rating? Consider A Guarantor Loan

Have you got a poor credit score and need money to start a business, buy a car or something else entirely - consider a guarantor loan to help get you started.

A lot of the personal loans or short term loans available for people with a bad credit rating tend to have high interest rates (APR).

Fortunately, the likes of guarantor loans have interest rates that are around the same as standard high-street bank loans. However, guarantor loans are for people with poor credit scores, unlike a standard unsecured loan from a bank.

Guarantor loans are growing in popularity, especially since they can offer larger loans over a longer period than standard short-term or payday loans. They’re especially good for young adults who want to take out a loan but don’t have the hottest credit rating. Essentially a parent or guardian can act as a “guarantor” for them so that, if they’re unable to repay the loan, the parent or guardian takes on the debt and repays it on their behalf.

This is probably the only significant downfall of a guarantor loan – you have to rely on the fact that your parent, guardian or friend will repay the loan if you can’t. You should only really consider this type of debt if you’re reasonably confident that you will be able to repay it or that your loan guarantor will be able to repay it if you’re unable to.

Its worth remembering that, unlike a payday loan, a guarantor loan can pay anything up to around £10,000 or more in some instances. It’s merely reliant on the good-word, financial status and credit history of your guarantor…

It probably sounds like quite a lot of hard-work – and it is, it’s no online payday loan application that’s for sure! But, if you need to improve your credit score and you need a large sum to buy a car, start a business or simply need to get yourself out of a rut then it might be worth considering.

Get A Guarantor Loan >>

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.”