According to research from One Advice, there are over two million people in the UK who owe over £10,000 on credit cards, or unsecured loans. Of these borrowers, about half a million owe over £20,000, and a quarter of a million owe £50,000 or more through unsecured loans.
According to National Savings and Investments, 39% of Britons overspend on their debit cards on day-to-day purchases citing the most common reason as, "they feel they are not spending any money". This is a worrying trend when considered alongside the UK credit card trade representative, APACS, reports that nearly two thirds of adults have at least one credit card and that multiple card holding is becoming a growing phenomenon. Over half of all card holders now hold more than one card, with one in ten holding at least five.
Chris Holmes, chief executive of One Advice, said, "It's worrying that so many people owe so much in unsecured debt - and it seems to be rising. With many unsecured borrowing products having high interest rates, many people are entrapped in debt. They are often only paying off the interest accrued every month, as opposed to the capital they have borrowed. Those caught in this situation need to take action - otherwise they will fall further into debt"
The survey also reports that the 35 to 44 age group was most vulnerable to running up significant levels of debt, making up around a third of those owing more than £10,000. 18 to 24 year olds were not immune however, with one in 20 surveyed already owing over £10,000. With the retraction of financial support for students, and the introduction of top up fees, this age group look set for greater susceptibility in the future. Some of the major banks have started to provide specific student and graduate banking help to reduce the potential impact on those who choose to take on further studies, but more looks to be needed.
Due to changes in the law, the number of bankruptcy declarations has seen significant rises, as people see it as the only way out of their debt crisis. Creditaction reports that, "the proportion of bankruptcies among the 18 to 29-age group has more than doubled in the last 4 years."
Chris Holmes said, "Those worrying about their finances should seek professional advice as taking out the wrong debt solution could make matters worse. Indeed, bankruptcy can sometimes appear to be the easy way out for people with serious financial problems, but there are difficulties associated with this that can remain for some time. Indeed, bankruptcy stays on your credit file for six years which can affect your ability to get a mortgage and credit, and you will pay higher interest rates. In some cases, it can also have an adverse effect when applying for jobs."
source:ezinearticles
Tuesday, December 28, 2010
Friday, December 24, 2010
Bad Credit Business Loans - to Exchange Bad Credit for Monetary Benefaction
You want to raise a business on your own or you want to expand it further. You have a plan and the vigour to make your mark in this field. The company that produces refrigerators to the one that produces anti wrinkle cream; every company no matter how small it is - requires money, hard core moolah to take it to great heights. You dream of the same every night. But isn't there a nightmare that invariably spoils your dream every time you plan your business. It is bad credit. So, how to end this chain of unpleasant circumstances? Bad credit business loans have furthered the cause of preventing financial mishaps for people who want to make it on their own.
Not every loan lenders is geared to provide bad credit business loans. You know you have bad credit if you are a bankrupt, CCJ, default, charge off, or have any past loan related arrears. Start from the beginning - get to know your credit score. A credit score enable the loan lender to judge the credit worthiness of loan borrower. It is a number generated by statistical methods. Based on these number bad credit business loans contenders are given grades like B, C and D. All these grades mean you have to apply for bad credit business loans. Starting a business with credit score ranging from 500-550 could be ideally done with bad credit business loan. Try to get an objective assessment of your credit report before you undertake your quest for bad credit business loans.
Now that you know about your credit score, concentrate on your business budget. You should be clear about your money requirements before you take out bad credit business loans. Your Bad credit business loans should be backed by a feasible business plan. Don't go applying for a bad credit business loan, if you are not ready with a business plan.
You can't expect to get a bad credit business loan without a proper plan. Bad credit business loan application that is replete with all the required information is usually placed on the top of the pile of applications. Provide your bad credit business loans application with the nature of your business, the objective of using the business loan, business name, your social security number. Be prepared with all the required documents before you go ahead.
Paperwork should be complete whilst you go for bad credit business loan hunting. Get a lawyer to review your loan papers and also check with him before signing any papers. Don't hand over your documents to the loan lender and don't sign any blank document.
You have bad credit. So your approved bad credit business loans application will bring with it higher rate of interest. Nevertheless bad credit business loans can be very good source of finance. The amount you can borrow with bad credit business loans is £50,000 and £1,000,000. The loan repayment term would be any where between 3 to 25 years depending on the loan amount. A secured business loan with bad credit will usually have lower rate of interest than unsecured bad credit business loans.
Bad credit business loans are a very good form of finance because it has an exceptional amount of advantages. The biggest convenience with bad credit business loans is flexibility and freedom. Bad credit business loans can provide continuous access to cash. You also get to hold your ownership of your company instead of resorting to selling the interest of your company in order to raise money.
Alright, you got approved for your bad credit business loan. You are high on the cloud, but did you read the fine print? You are nodding your head in the negative. Fine prints may carry at times hidden charges, including annual fees, bank charges, closing costs, commissions and balloon payments. Borrowing money for business with bad credit is not only serious but liable to fraud and deception. Don't get into something you are not comfortable with and also ask questions about fundamental things like APR, your monthly payments etc. on your bad credit business loan.
source:ezinearticles
Not every loan lenders is geared to provide bad credit business loans. You know you have bad credit if you are a bankrupt, CCJ, default, charge off, or have any past loan related arrears. Start from the beginning - get to know your credit score. A credit score enable the loan lender to judge the credit worthiness of loan borrower. It is a number generated by statistical methods. Based on these number bad credit business loans contenders are given grades like B, C and D. All these grades mean you have to apply for bad credit business loans. Starting a business with credit score ranging from 500-550 could be ideally done with bad credit business loan. Try to get an objective assessment of your credit report before you undertake your quest for bad credit business loans.
Now that you know about your credit score, concentrate on your business budget. You should be clear about your money requirements before you take out bad credit business loans. Your Bad credit business loans should be backed by a feasible business plan. Don't go applying for a bad credit business loan, if you are not ready with a business plan.
You can't expect to get a bad credit business loan without a proper plan. Bad credit business loan application that is replete with all the required information is usually placed on the top of the pile of applications. Provide your bad credit business loans application with the nature of your business, the objective of using the business loan, business name, your social security number. Be prepared with all the required documents before you go ahead.
Paperwork should be complete whilst you go for bad credit business loan hunting. Get a lawyer to review your loan papers and also check with him before signing any papers. Don't hand over your documents to the loan lender and don't sign any blank document.
You have bad credit. So your approved bad credit business loans application will bring with it higher rate of interest. Nevertheless bad credit business loans can be very good source of finance. The amount you can borrow with bad credit business loans is £50,000 and £1,000,000. The loan repayment term would be any where between 3 to 25 years depending on the loan amount. A secured business loan with bad credit will usually have lower rate of interest than unsecured bad credit business loans.
Bad credit business loans are a very good form of finance because it has an exceptional amount of advantages. The biggest convenience with bad credit business loans is flexibility and freedom. Bad credit business loans can provide continuous access to cash. You also get to hold your ownership of your company instead of resorting to selling the interest of your company in order to raise money.
Alright, you got approved for your bad credit business loan. You are high on the cloud, but did you read the fine print? You are nodding your head in the negative. Fine prints may carry at times hidden charges, including annual fees, bank charges, closing costs, commissions and balloon payments. Borrowing money for business with bad credit is not only serious but liable to fraud and deception. Don't get into something you are not comfortable with and also ask questions about fundamental things like APR, your monthly payments etc. on your bad credit business loan.
source:ezinearticles
Tuesday, December 21, 2010
How To Avoid Loans For People With Bad Credit - 3 Good Tips
Having a poor credit rating is no fun at all. Unfortunately, most of us manage to get into that situation by going a little wild with the credit cards and ultimately not being able to pay them off. Some people think that by getting a loan and paying off the balances, all will be well. This is wrong thinking. Here are three simple reasons why you should not take out a loan for people with bad credit - especially if you are one of those people...
First, you are likely to simply get deeper in the hole. While there are people who take out a consolidation loan and pay off all their outstanding debts and keep it that way, they are in the minority. Most of us pay off the credit cards, enjoy a brief season of a month or two of only having the loan payment to make, and then slowly give ourselves permission to start running those cards back up to their limits. Within a year or so, we not only have a mountain of credit card debt, but also a loan to pay off and no way to get any further financial assistance.
Second, if your credit is that bad, you are going to pay through the nose for a loan. You will be considered a high risk, and the interest rates and terms of the loan contract will reflect that. If you look closely, you may find that the rate of interest applied to the loan is higher than the interest rate on any of the credit cards you currently have in your possession. In short, you will end up paying out more money by taking out the loan and paying off the cards. You will come out ahead to cut up the cards and make payment arrangements with your creditors.
Third, taking out a loan when your credit is already in the toilet is only putting a band-aid on a gaping wound. Instead of trying to quickly fix your credit problem by taking out a loan, you need to address the habits that got you into the mess in the first place. Instead of looking for loans, find a credit counseling agency in your city and make an appointment. There you will find help in developing the kind of habits that will allow you to regain your good credit and become financially stable.
source:ezinearticles.com
First, you are likely to simply get deeper in the hole. While there are people who take out a consolidation loan and pay off all their outstanding debts and keep it that way, they are in the minority. Most of us pay off the credit cards, enjoy a brief season of a month or two of only having the loan payment to make, and then slowly give ourselves permission to start running those cards back up to their limits. Within a year or so, we not only have a mountain of credit card debt, but also a loan to pay off and no way to get any further financial assistance.
Second, if your credit is that bad, you are going to pay through the nose for a loan. You will be considered a high risk, and the interest rates and terms of the loan contract will reflect that. If you look closely, you may find that the rate of interest applied to the loan is higher than the interest rate on any of the credit cards you currently have in your possession. In short, you will end up paying out more money by taking out the loan and paying off the cards. You will come out ahead to cut up the cards and make payment arrangements with your creditors.
Third, taking out a loan when your credit is already in the toilet is only putting a band-aid on a gaping wound. Instead of trying to quickly fix your credit problem by taking out a loan, you need to address the habits that got you into the mess in the first place. Instead of looking for loans, find a credit counseling agency in your city and make an appointment. There you will find help in developing the kind of habits that will allow you to regain your good credit and become financially stable.
source:ezinearticles.com
Tuesday, September 28, 2010
Bad Credit Loans - Instant Decisions Are Not Affected by Your Bad Credit
Bad credits are common problems these days. As the end of month arrives money in your pocket also decreases, thus leaving you in a situation when you need money to spend on your day-to-day activities. Bad credit holders face problems when they apply for loan. Their credit ratings affect the decision of the lender. These loans are available when you urgently need the money.
Bad credit loans instant decisions are available in both secured and unsecured form. If you are suffering from cash shortage and need money, you can have the money without any security. The loan amount can be used for any personal expenses.
The lender is needed to be convinced in order to take the loan. Instant bad credit loan will need proof of your income, financial situation and a good repayment plan. A good plan can always get you the loan.
Secured bad credit loan instant decision needs the security. This security stays with the lender until the loan amount is paid off. Home, properties, automobile, saving account, etc can be the security for the loan. These help to lower the interest rate and increase the amount of the loan. The amount ranges from £5000 to £75000. The tenure to repay the loan is 5 years to 25 years.
Unsecured bad credit loans instant decision is available for £5000 to £25000. The repayment tenure is 5 years to 10 years. The rate of interest is high because of absence of security.
Online bad credit instant loan is faster. The processing time is much less. Shopping around can get you the best deal. If you convince the lender, many things can be adjusted according to your needs. There are not too many lenders who do that. Basic financial information is required to fill in the online form and then you are set to have the money.
source:ezinearticles.com
Bad credit loans instant decisions are available in both secured and unsecured form. If you are suffering from cash shortage and need money, you can have the money without any security. The loan amount can be used for any personal expenses.
The lender is needed to be convinced in order to take the loan. Instant bad credit loan will need proof of your income, financial situation and a good repayment plan. A good plan can always get you the loan.
Secured bad credit loan instant decision needs the security. This security stays with the lender until the loan amount is paid off. Home, properties, automobile, saving account, etc can be the security for the loan. These help to lower the interest rate and increase the amount of the loan. The amount ranges from £5000 to £75000. The tenure to repay the loan is 5 years to 25 years.
Unsecured bad credit loans instant decision is available for £5000 to £25000. The repayment tenure is 5 years to 10 years. The rate of interest is high because of absence of security.
Online bad credit instant loan is faster. The processing time is much less. Shopping around can get you the best deal. If you convince the lender, many things can be adjusted according to your needs. There are not too many lenders who do that. Basic financial information is required to fill in the online form and then you are set to have the money.
source:ezinearticles.com
Monday, September 27, 2010
UK Debt Trends Worrying Loan and Credit Card Analysts
According to research from One Advice, there are over two million people in the UK who owe over £10,000 on credit cards, or unsecured loans. Of these borrowers, about half a million owe over £20,000, and a quarter of a million owe £50,000 or more through unsecured loans.
According to National Savings and Investments, 39% of Britons overspend on their debit cards on day-to-day purchases citing the most common reason as, "they feel they are not spending any money". This is a worrying trend when considered alongside the UK credit card trade representative, APACS, reports that nearly two thirds of adults have at least one credit card and that multiple card holding is becoming a growing phenomenon. Over half of all card holders now hold more than one card, with one in ten holding at least five.
Chris Holmes, chief executive of One Advice, said, "It's worrying that so many people owe so much in unsecured debt - and it seems to be rising. With many unsecured borrowing products having high interest rates, many people are entrapped in debt. They are often only paying off the interest accrued every month, as opposed to the capital they have borrowed. Those caught in this situation need to take action - otherwise they will fall further into debt"
The survey also reports that the 35 to 44 age group was most vulnerable to running up significant levels of debt, making up around a third of those owing more than £10,000. 18 to 24 year olds were not immune however, with one in 20 surveyed already owing over £10,000. With the retraction of financial support for students, and the introduction of top up fees, this age group look set for greater susceptibility in the future. Some of the major banks have started to provide specific student and graduate banking help to reduce the potential impact on those who choose to take on further studies, but more looks to be needed.
Due to changes in the law, the number of bankruptcy declarations has seen significant rises, as people see it as the only way out of their debt crisis. Creditaction reports that, "the proportion of bankruptcies among the 18 to 29-age group has more than doubled in the last 4 years."
Chris Holmes said, "Those worrying about their finances should seek professional advice as taking out the wrong debt solution could make matters worse. Indeed, bankruptcy can sometimes appear to be the easy way out for people with serious financial problems, but there are difficulties associated with this that can remain for some time. Indeed, bankruptcy stays on your credit file for six years which can affect your ability to get a mortgage and credit, and you will pay higher interest rates. In some cases, it can also have an adverse effect when applying for jobs."
Another recent trend, fostered by wide scale advertising, is towards debt consolidation loans in an effort to make loan repayments easier to keep track of. However, Richard Brown, Chief Executive Officer of Moneynet, has warned that people should, "Think carefully before consolidating their debts, this can prove to be a lifesaver for many people. Amalgamating all credit card, store card and personal loan debt into one can make the payments more manageable. However, once this has been done it is often sensible to destroy existing credit cards and avoid the temptation of running up further debt until the loan is repaid".
Disclaimer:
All information contained in this article, is for general information purposes only and should not be construed as advice under the Financial Services Act 1986.
You are strongly advised to take appropriate professional and legal advice before entering into any binding contracts.
source:ezinearticles.com
According to National Savings and Investments, 39% of Britons overspend on their debit cards on day-to-day purchases citing the most common reason as, "they feel they are not spending any money". This is a worrying trend when considered alongside the UK credit card trade representative, APACS, reports that nearly two thirds of adults have at least one credit card and that multiple card holding is becoming a growing phenomenon. Over half of all card holders now hold more than one card, with one in ten holding at least five.
Chris Holmes, chief executive of One Advice, said, "It's worrying that so many people owe so much in unsecured debt - and it seems to be rising. With many unsecured borrowing products having high interest rates, many people are entrapped in debt. They are often only paying off the interest accrued every month, as opposed to the capital they have borrowed. Those caught in this situation need to take action - otherwise they will fall further into debt"
The survey also reports that the 35 to 44 age group was most vulnerable to running up significant levels of debt, making up around a third of those owing more than £10,000. 18 to 24 year olds were not immune however, with one in 20 surveyed already owing over £10,000. With the retraction of financial support for students, and the introduction of top up fees, this age group look set for greater susceptibility in the future. Some of the major banks have started to provide specific student and graduate banking help to reduce the potential impact on those who choose to take on further studies, but more looks to be needed.
Due to changes in the law, the number of bankruptcy declarations has seen significant rises, as people see it as the only way out of their debt crisis. Creditaction reports that, "the proportion of bankruptcies among the 18 to 29-age group has more than doubled in the last 4 years."
Chris Holmes said, "Those worrying about their finances should seek professional advice as taking out the wrong debt solution could make matters worse. Indeed, bankruptcy can sometimes appear to be the easy way out for people with serious financial problems, but there are difficulties associated with this that can remain for some time. Indeed, bankruptcy stays on your credit file for six years which can affect your ability to get a mortgage and credit, and you will pay higher interest rates. In some cases, it can also have an adverse effect when applying for jobs."
Another recent trend, fostered by wide scale advertising, is towards debt consolidation loans in an effort to make loan repayments easier to keep track of. However, Richard Brown, Chief Executive Officer of Moneynet, has warned that people should, "Think carefully before consolidating their debts, this can prove to be a lifesaver for many people. Amalgamating all credit card, store card and personal loan debt into one can make the payments more manageable. However, once this has been done it is often sensible to destroy existing credit cards and avoid the temptation of running up further debt until the loan is repaid".
Disclaimer:
All information contained in this article, is for general information purposes only and should not be construed as advice under the Financial Services Act 1986.
You are strongly advised to take appropriate professional and legal advice before entering into any binding contracts.
source:ezinearticles.com
Friday, September 24, 2010
Get Finance of Your Terms by Availing Bad Credit Secured Loans
Your bad credit will not be a big hurdle in taking a loan if you are ready to place your property with lender as security. Bad credit secured loans are, therefore, available easily to borrowers having adverse credit history. But bad credit secured loans should be availed carefully as otherwise the loan may result in another bad credit.
Bad credit secured loans can be put to many usages such as meeting financial requirements, going to a holiday trip, home improvements, buying a car etc. Since larger amount can be ensured, borrowers can even pay off those many bad debts by taking the loan.
Borrowers are required to take bad credit secured loans against any of their property like home. The property placed as collateral with the lenders works as security of the loan. So, lenders have no problem in offering loan to borrowers with adverse credit report. In case of payment default, the lender is free to sell the collateral to recover the loaned amount.
Bad credit means the borrowers have at least one or two cases of repayment defaults or County Court Judgments against them. Since the loan is secured, bad credit is not a big concern to lenders.
One can avail bad credit secured loans in the range of £3000 to £75,000.To offer larger amount of loan the lender will evaluate equity in the collateral. If the loan asked is still lower than the equity, the loan will easily be provided. Therefore, to avail larger loan, the borrower should offer the lender a property like home, which always has higher equity, as collateral.
There is larger repayment duration of 5 to 25 years available to borrowers going through bad credit phase and taking the loan against property. One should, however, take the loan for shorter possible duration to avoid carrying debt burden for long.
Biggest advantage to bad credit history people in taking bad credit secured loans is lower interest rate. Being a secured loan, lenders readily lower the interest rate in order to have the customer in his fold. Despite adverse credit reputation, the borrower manages to extract 2-3 percent lower interest rate than any unsecured loan.
One effective way to further lower interest rate is to apply for the loan online. You will be flooded with loan offers from numerous lenders who have showcased their bad credit secured loans on internet. Due to growing competition in the loan sector, lenders cut interest rate to attract borrowers.
Make efforts to improve that yours very credit report by paying off easy debts and then getting the report updated by a reputed agency. On the basis of the report, lender gives credit score to judge the risk involved in the loan offer. Credit score of 620 and above is considered safe.
Your adverse credit history will not come in the way of availing the bad credit secured loans, but interest rate and loan amount should be given a thought before finalizing loan deal.
source:ezinearticles.com
Bad credit secured loans can be put to many usages such as meeting financial requirements, going to a holiday trip, home improvements, buying a car etc. Since larger amount can be ensured, borrowers can even pay off those many bad debts by taking the loan.
Borrowers are required to take bad credit secured loans against any of their property like home. The property placed as collateral with the lenders works as security of the loan. So, lenders have no problem in offering loan to borrowers with adverse credit report. In case of payment default, the lender is free to sell the collateral to recover the loaned amount.
Bad credit means the borrowers have at least one or two cases of repayment defaults or County Court Judgments against them. Since the loan is secured, bad credit is not a big concern to lenders.
One can avail bad credit secured loans in the range of £3000 to £75,000.To offer larger amount of loan the lender will evaluate equity in the collateral. If the loan asked is still lower than the equity, the loan will easily be provided. Therefore, to avail larger loan, the borrower should offer the lender a property like home, which always has higher equity, as collateral.
There is larger repayment duration of 5 to 25 years available to borrowers going through bad credit phase and taking the loan against property. One should, however, take the loan for shorter possible duration to avoid carrying debt burden for long.
Biggest advantage to bad credit history people in taking bad credit secured loans is lower interest rate. Being a secured loan, lenders readily lower the interest rate in order to have the customer in his fold. Despite adverse credit reputation, the borrower manages to extract 2-3 percent lower interest rate than any unsecured loan.
One effective way to further lower interest rate is to apply for the loan online. You will be flooded with loan offers from numerous lenders who have showcased their bad credit secured loans on internet. Due to growing competition in the loan sector, lenders cut interest rate to attract borrowers.
Make efforts to improve that yours very credit report by paying off easy debts and then getting the report updated by a reputed agency. On the basis of the report, lender gives credit score to judge the risk involved in the loan offer. Credit score of 620 and above is considered safe.
Your adverse credit history will not come in the way of availing the bad credit secured loans, but interest rate and loan amount should be given a thought before finalizing loan deal.
source:ezinearticles.com
Monday, September 20, 2010
Wedding Loans For People With Bad Credit - A Helping Hand For Your Wedding
Are you getting married and need some some cash to make your wedding special? Wedding loans for people with bad credit are the ways that support you in your dream wedding. So if you got your partner of life and are now walking towards the next level of relationship in terms of marriage, these loans are perfect for you.
As the name suggests, this facility of getting cash are basically designed for imperfect credit holders so that they can also get the cash without any hassle. There is no credit check procedure so you get the cash without any delay.
With the help of the amount, you can perform every financial activity with perfection and full satisfaction. The amount is sufficient to provide you fiscal support for the expenses like wedding venue, honeymoon at dream location, caters, decorators, music, shopping, etc.
You can avail the wedding loans for people with bad credit in two forms secured and unsecured. If you can pledge the property, secured form will be right option. In the secured form, you are entitled to get the amount between £500 and £100,000 depending up on the value of the collateral. You have to return the loan amount within the time period of 1 to 25 years.
On the other hand, if you can pledge the property, you can apply for unsecured form where you do not need to provide security against the loan amount. Lenders do not bother about the collateral and allow the cash in the range of £1000 to £25000 for the time of 1 to 25 years.
Source: ezinearticles.com
As the name suggests, this facility of getting cash are basically designed for imperfect credit holders so that they can also get the cash without any hassle. There is no credit check procedure so you get the cash without any delay.
With the help of the amount, you can perform every financial activity with perfection and full satisfaction. The amount is sufficient to provide you fiscal support for the expenses like wedding venue, honeymoon at dream location, caters, decorators, music, shopping, etc.
You can avail the wedding loans for people with bad credit in two forms secured and unsecured. If you can pledge the property, secured form will be right option. In the secured form, you are entitled to get the amount between £500 and £100,000 depending up on the value of the collateral. You have to return the loan amount within the time period of 1 to 25 years.
On the other hand, if you can pledge the property, you can apply for unsecured form where you do not need to provide security against the loan amount. Lenders do not bother about the collateral and allow the cash in the range of £1000 to £25000 for the time of 1 to 25 years.
Source: ezinearticles.com
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