‘Loans’ News
Clever consumers” regularly check credit reports
Posted 2008-06-4
Savvy consumers check their credit reports regularly, according to one expert.James Jones, the consumer education manager at Experian, said that as loans are becoming increasingly difficult to get hold of, consumers need to take steps to maximise their chance of having an application accepted.He added that lenders often rely on credit histories to help decide whether or not they accept somebodys application, which is why he advises that people should check their information is up-to-date.Mr Jones added that lenders are also using credit histories to help determine what rates of interest they should charge people."Clever consumers are checking their credit reports to make sure that all the information is correct," he concluded.Recent research from CreditExpert.co.uk highlighted that many would-be borrowers are not confident that they would be given a loan.Some 23 per cent of those polled said they would expect to be turned down for a loan of £1,000, while 42 per cent were unsure they could secure £10,000 worth of credit....
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Brits ‘unsure about their debt levels’
Posted 2008-06-3
One in ten Britons are unsure about their level of debt, according to new research.A study by CreditExpert.co.uk has revealed that, although 96 per cent of respondents initially claimed to be familiar their finances, further probing proved that they were not.It was also noted that only one in four people know how much they have left to pay back on their loans, while a fifth admit to only planning their finances every six months.Jim Hodgkins, managing director for CreditExpert.co.uk, said that it was "alarming" people knew so little about the state of their finances, adding: "Keeping track of your commitments and planning for the future are always important."Other findings which emerged from the research included that people are not confident about applying for loans, with 23 per cent of those questioned expecting to be turned down for a loan of £1,000 and 42 per cent believing they would be refused £10,000.In related news, MoneyExpert.com has revealed that some 38 per cent of people with debts are concerned about their ability to pay back their loans....
Read Brits ‘unsure about their debt levels’
Car buyers ‘using loans to purchase impressive vehicles’
Posted 2008-05-28
Consumers are being tempted into taking out loans they cannot afford in order to purchase cars and boost their image, it has emerged.Research conducted by Experian highlights that a third of UK adults would get themselves into debt to give the impression that they are wealthy.The poll shows that men are more likely to succumb to such measures than women, with one in five being tempted to take out a loan to buy a car compared to one in ten females.It also notes that people residing in the east Midlands, west Midlands and East Anglia are the most likely in the UK to go over budget with a car to appear wealthy, with 16 per cent of respondents from these regions saying that they would take out a loan to make such a purchase.Kirk Fletcher, managing director of Experians Automotive division, says: "The credit crunch is having a significant impact on consumer confidence across the UK, yet this survey highlights the fact that the consumers desire for a car that projects the right image remains as strong as ever."This follows news from Fool.co.uk that increasing numbers of brides and grooms are using loans to finance their big day....
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National Debtline: Reliance on payday loans symptomatic of money troubles
Posted 2008-05-19
Individuals who are regularly relying on payday loans may have a serious underlying debt problem, according to one expert.The National Debtline has stated borrowers regularly using short-term, high-interest loans are "over committed" and paying out more than they are earning.Beccy Boden-Wilks, a spokesperson for the group, added: "If somebody feels the need to use a payday loan on a regular basis, its probably symptomatic of a serious underlying debt problem."Ms Boden-Wilks continued to say that individuals should try to get themselves out of this cycle by taking a good look at their budget and getting help from their creditors or mortgage lender to make sure it is more manageable.This follows news that the number of people taking payday loans has more than doubled since last September.According to Tim Moss, head of loans at Moneysupermarket.com, people are resorting to this type of borrowing to cope with the increasing costs of food, fuel and utilities....
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Loan rates on the rise
Posted 2008-05-18
New research has found that the average rates of interest on unsecured loans of £5,000 and £7,500 have risen by one per cent over the last six months.According to MoneyExpert, the rate for a £5,000 sum is around 10.16 per cent compared with 9.4475 per cent in November last year.The average for a loan of £7,500 has risen to 8.88 per cent from 7.97 per cent in the same time period.Sean Gardner, founder of MoneyExpert.com, believes that the Bank of England faces a big challenge restoring confidence to the financial markets after lenders raised their rates despite the bank slashing interest rates three times."The unsecured loans market is almost mirroring the mortgage market where the issue is not so much rates but availability - whether or not lenders will let you have the cash," he said.Personal debt in the UK at the end of March was around £1.43 trillion....
Cost of living fuels payday loans rise
Posted 2008-05-15
The number of payday loans being taken out by consumers has increased by 55 per cent since September last year, new research has found.A survey by Moneysupermarket.com has found that the rise in cost of utility bills and food has seen payday loans become a more popular option for borrowers in need of short-term credit.However, Tim Moss, head of the price comparison site, warned that such forms of credit are only beneficial if the loan is for a short period of time and advised consumers to borrow from family members if the money is needed over a longer period of time."As disposable income is being squeezed through increases in the cost of food, fuel, utilities and general living necessities, these loans are increasingly used to help those on a tight budget. They are a bit like a taxi - convenient for short-term journeys," he said.Payday loans are designed to cover a persons expenses until their next pay day....
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Cost of living fuels payday loans rise
Posted 2008-05-15
The number of payday loans being taken out by consumers has increased by 55 per cent since September last year, new research has found.A survey by Moneysupermarket.com has found that the rise in cost of utility bills and food has seen payday loans become a more popular option for borrowers in need of short-term credit.However, Tim Moss, head of the price comparison site, warned that such forms of credit are only beneficial if the loan is for a short period of time and advised consumers to borrow from family members if the money is needed over a longer period of time."As disposable income is being squeezed through increases in the cost of food, fuel, utilities and general living necessities, these loans are increasingly used to help those on a tight budget. They are a bit like a taxi - convenient for short-term journeys," he said.Payday loans are designed to cover a persons expenses until their next pay day....
Read Cost of living fuels payday loans rise
Secondary loans could spell trouble for homeowners
Posted 2008-05-6
Housing charity Shelter has warned that the number of repossessions this year could come close to the record of 59,000 set in 1993, due to secondary loans being taken out by homeowners over the last few years.The organisation claims that during high property inflation, many homeowners took out secondary loans to cover the cost of home improvements and to pay off debts such as credit cards.Shelter claims that almost 20 per cent of repossession orders passing through the county courts are against people who have secondary loans secured against their homes and up to 53,000 properties could be reclaimed.Adam Sampson, chief executive of Shelter, said that the actual number of repossessions could are likely to be much higher than previous estimates."We are finding lots of cases where lenders of other financial products are taking action themselves. And those ones, by and large, are not counted in the statistics; but they will add substantially to the total number of people who lose their homes," he said.Shelter helps tenants and homeowners fight for their rights concerning property by offering advice and campaigning....
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Credit crunch sees fraud increase
Posted 2008-04-30
The UK fraud prevention service has claimed the effects of the credit crunch have contributed to more consumers lying on application forms for loans and credit cards.CIFAS claims there was a ten per cent increase in the number of fraud cases compared to 2007, with 52,286 reported cases.The BBC claims that lies on application forms have risen from 19,239 in the first three months of 2007 to 21,870 this year, representing a 13 per cent interest.Chief executive of CIFAS, Peter Hurst, suggested that the current financial climate is driving people towards this dishonesty."Because people are getting into debt earlier, and because the credit crunch has diminished their access to finance, they are now resorting to fraudulent applications for funds," he said.The most common lie was found to be a failure to disclose a previous address, where the applicant may have a poor credit history.CIFAS comprises 270 members across banking, telecommunications and credit card sectors....
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Personal loan rates increase
Posted 2008-04-28
New figures have shown that the interest rates on personal loans have increased, with a number of lenders raising their rates.Barclaycard, Lombard Direct and NatWest are just a few of the companies who have pushed their rates up in the last two weeks, according to personal finance information provider Moneyfacts.Michelle Slade, an analyst at Moneyfacts, believes that personal loans are now starting to mimic mortgages in terms of increases in the interest charged."Its not only mortgage rates that continue to increase, so too have the rates and monthly repayments on personal loans. Since the beginning of the year more than half of lenders offering personal loans have made changes to their rates," she said.Ms Slade did note that some providers had "bucked the trend" by reducing their charges, such as Yorkshire Bank.Recent Bank of England data revealed that the value of personal loans in the UK had fallen by more than 50 per cent in March....