‘Loans’ News
Number of secured loans increases
Posted 2008-04-24
The number of people in the UK taking out secured loans over recent years has risen, it has been claimed.Quoting research from Alliance & Leicester, the price comparison site Onlyfinance.com claims that more people are moving away from taking out unsecured loans.It states that the increase in secured borrowing is a result of the credit crunch and the continued uncertainty in the financial markets.Research by Alliance & Leicester discovered that "overall borrowing trends are moving away from unsecured debt, while secured lending continues its rapid pace.Figures also show that secured loans are proving to be a popular method of debt consolidation for many in the UK, according to the site.It claims that the fact that secured forms of borrowing reduce the ability to acquire further debt appeals to many consumers, as well as the fact that interest rates can be significantly lower than on an unsecured loan.Recently released figures from the British Banking Association revealed that borrowing on personal loans declined by 0.2 billion in March....
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Debt to double for Brits in 2008
Posted 2008-04-15
About one million people in the UK have "problem" debt, according to a new report, and this is set to increase over the year. The study, entitled UK Problem Debt and conducted by debt management solutions firm TDX Group, has revealed that the number of Brits struggling with their debts will double during 2008. ...
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Students warned over bad credit rating
Posted 2008-04-8
A leading student financial charity has warned the nations students that irresponsible spending could catch up with them.Alistair Lomax, executive director of UniAid, said that students should do more to plan for their futures, ominously warning that "the fun you have now could come back to haunt you".He pointed to the guidelines sanctioned by his organisation which include getting to grips with budgeting skills while still at university and taking extra care to avoid superfluous borrowing.Mr Lomax added that students who turn a blind eye to paying debts run the risk of damaging their credit rating, which "will affect their ability to borrow later on in life"."[It is important] to make use of all the support available, so that you come out of university with a positive credit rating," he emphasised. "Be responsible, because it will have an impact later on."Recent research by the debt charity found that average graduate debt currently stands at £17,500....
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FSA clamps down on rogue lenders
Posted 2008-04-7
The Financial Services Authority (FSA) is to begin clamping down on the actions of unscrupulous lenders, it has been confirmed.In what has been described as the "biggest shake-up of the consumer credit market for more than 30 years," the FSA is launching a series of new drives aimed at weeding out firms who intentionally offer irresponsible loans."There will be more protection for people who get caught out by rogue lenders who pretend to play by the rules but act like loan sharks," affirmed John Hutton, secretary of state for business and enterprise.He listed examples of behaviour which has been deemed unacceptable, including the use of pressure sales tactics, unfair terms and conditions, unreasonably high interest rates and intimidating debt collection practices.Under the new regulations, whose launch coincides with the start of the new financial year, the Office of Fair Trading will be able to fine unscrupulous lenders as much as £50,000 as well as stripping them of their licences....
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Loan approvals ‘forgo income checks’
Posted 2008-04-3
UK banks issued approximately £20.9 billion worth of loans last year without checking peoples income, new research has suggested.According to uSwitch some 70 per cent of loan applicants were not asked to provide evidence of their earnings, while 15 per cent were not asked about their income at all on application forms.Industry experts have reacted angrily to the report, noting that the US sub-prime crash which kicked off the current credit crunch was brought about by irresponsible lending across the Atlantic.Mike Naylor, personal finance expert at uSwitch, bemoaned: "With more than 7,716 loan repayments being missed every day and record write-offs, you might think lenders would have learnt their lesson, but the potential profits have clearly been too good to resist."He went on to say that the new Banking Code - which is intended encourage responsible lending - "does not go far enough" to stop financial institutions from issuing crippling loans to consumers.Advocating tighter measures, Mr Naylor added: "Further credit checks could be costly However, it could be a small price to pay if it helps to curb the rapid growth of debt which is spiraling out of control....
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Consumer debt ‘becoming a lifestyle’
Posted 2008-03-27
Brits are so obsessed with borrowing money that the UK has been described by one wealth management firm as embodying a debt lifestyle. Addidi Wealth has said that even with the credit crunch making it increasingly difficult for consumers to borrow money, many Brits are showing little willingness to adopt a more financially responsible outlook. ...
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Credit-crazed youth ’saddled by debt’
Posted 2008-03-26
Young people are taking on unsustainable amounts of debt due to their obsession with credit, Scottish Widows has warned. The bank noted that parents of grown children are now giving their offspring an average of £12,500 in financial aid in order to keep them afloat. ...
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CAB: Households face rising debt levels
Posted 2008-03-25
Household debt has risen significantly in the first two months of 2008, the Citizens Advice Bureau (CAB) has claimed. January and February saw a 215,000 year-on-year increase in the number of people contacting the charity for debt advice, with many of the inquiries relating to utility bills and council tax. ...
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6.5m turning to debt consolidation
Posted 2008-03-16
Up to 6.5 million Brits have opted to take out a debt consolidation loan in the past three years, it has emerged. Among that group some 1.29 million took out loans of over £20,000 - amalgamating hefty credit card, store card and personal loans debts into one repayment programme. ...
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Student loan defaults ’should affect credit rating’
Posted 2008-03-13
New guidelines authorising financial institutions to notify credit agencies about people who fail to meet their student loan repayments are justifiable, one leading financial website has claimed. MoneyFacts.co.u...