Loans a better option than credit cards for those without discipline

Many people these days are using credit cards and loans in order to get finance. Whilst it has become more difficult to get credit over recent years, there are many people who still manage to get finance. However, for those with lack of discipline, some forms of credit card quickly lead to spiralling debt that can then become increasingly difficult to repay.

One finance industry group has recently suggested that whilst credit cards are still very popular amongst many people, those with less discipline may be better off with a more structured form of borrowing and repayment such as personal loans. The fact that these loans are for set amounts and have set repayments can make them more manageable than credit cards for many people.

Whilst there are many benefits to using credit cards, such as the ability to get interest free credit if you have a good credit status, many people find it difficult to manage their spending and their repayments on these cards. This can then quickly lead to problem debts mounting up and borrowers could quickly find themselves in a situation where they are no longer able to meet even the minimum repayments on their debts.

The finance group stated: “For anyone trying to clear their debts, one of the main benefits of personal loans over credit cards is that they are for a set amount. In other words, you cannot keep on spending as you could with a credit card, which often makes loans a better choice for less disciplined borrowers. Unlike credit cards, personal loans also come with fixed monthly payments. This makes it easier to budget and also ensures that you make regular inroads into reducing your debt. As the term of the average personal loan is between three and five years, the payments that someone with a lot of debt will have to make are also often lower than those he or she would need to make to clear the same amount on a 0% credit card.”

Tags: order, term, cannot, average personal loan, problem debts, interest free credit

First time buyers still have options to help them get on the property ladder

Times are hard, and now we’re hearing that the UK’s economic recovery is ‘paralysed’ by Europe’s debt crisis. With the economy the way it is, first time buyers often write off the possibility of ever getting on the property ladder and believe they are set to rent for the rest of their lives. This is not the case anymore, with the government; various agencies; housing associations and property developers now offering a range of deals to help first time buyers get on that crucial ladder. Here are 5 tips that can help you keep those costs down…

Shared ownership

Shared-ownership is a terrific way into home ownership and is the main affordable housing scheme. If you cannot afford to buy outright, you can part buy part rent your home – you pay a rent on the share that you do not buy which is set at an ‘affordable’ rate. The bigger the share that you purchase, the less rent you have to pay.

The FirstBuy scheme

Saving for a deposit is something that holds lots of first time buyers back. Schemes like this give you a step up onto the ladder, by lending you some of the money through a shared equity offer. If you purchase your first home in England though the FirstBuy scheme, your deposit could be as low as 4% – there are online calculators to see the difference it could make. If you are looking in Scotland or Wales, there’s a similar scheme called Head Start.

Avoiding stamp dut

Not an offer as such, but a way to reduce the cost of purchasing your own home. If your home’s value is less than £250,000 there’s no Stamp Duty to pay if you complete before March 24, 2012. That could save you up to £2,500 when you move.

Family ownership with your parents

It is becoming increasingly popular for young single people to include their parents on their mortgages. Even if they just own 1% of the property this security enables you to borrow more money from the bank and buy a more expensive property.

Move to a cheaper area

This does not sound like a perfect solution but sometimes in life, we have to take a step sideways to move forwards. House prices in some areas are much cheaper. If you are willing to move to these areas then you can make buying a house a real possibility. You never know, you may make a hefty profit in the end. It is worth bearing in mind that cheaper areas do not always mean lower quality. For example, some areas are more expensive because they are close to good schools so it is worth researching prices in different areas.

Tags: something, Equity sharing, offer, ownership shared-ownership, Wales, main, buying, deals, stamp duty, Shared-ownership

Consumer White Paper – Protection For All Consumers

The consumer White Paper, which outlined proposals to but a stop to unscrupulous lending by credit card companies, also contained measure to strengthen the rights of ALL consumers- those who feel ripped-off or conned. Read more

Tags: paper, rogue traders, cannot, Trading Standards Institute, better deal, MP Kevin Brennan, Credit card, consumer protection

Is private health insurance the way forward?

We all want to do our best to protect our own health and that of our loved ones, but for many people in the UK the National Health Service leaves a lot to be desired. The NHS has come under fire for many things over recent years, from the length of its waiting lists and the quality of care given in hospitals to the levels of staff and even the levels of hygiene exercised in NHS hospitals. Read more

Tags: issue, recent years, cannot, health insurance, price, super bugs, research, giant

Unemployment levels could rise due to housing slump

The housing slump in the UK has been making the headlines on a regular basis over recent months, with house prices already having tumbled and with predictions that they will fall further over the coming months. This in itself has put potential buyers off because many are worried that house prices will continue to fall once they have purchased a property, and that they could then be left facing negative equity. Read more

Tags: decorators, unemployment, rocket record deposits, onset, gas bills, official, cannot, estate agents

Avoiding credit card pitfalls

Credit cards have proven invaluable to consumers in the UK over the years, and with such a wide range of cards now available there is something to suit everyone, from those looking for interest free credit to those with poor credit who want a chance to try and rebuild their credit rating. Credit card offer many excellent benefits, including total ease and convenience, as well as the chance to take advantage of a range of rewards such as cash back, rewards, air miles and more. Many cards also offer benefits such as extended warranty on purchases, protection against loss or damage of purchases, emergency card replacement services, and more. Read more

Tags: Many cards, credit card balance, debt, sort, credit card pitfalls, repayments habits, Credit Cards, cannot

Drivers not going hands-free

Many British drovers continue to use their mobile phones while driving, despite recent changes to make punishments harsher.

A survey, carried out by Which?, found that 33 per cent of drivers are still making and receiving calls while behind the wheel.

In addition, 32 per cent admit to sending or reading text messages while driving, running the risk of prosecution or, even worse, having an accident.

New laws introduced in February state that drivers can be hit with a £60 fine and three penalty points on their licence if they are caught on their phone while driving.

This can have a big effect on insurance premiums for drivers and the fact that they continue to talk and drive cannot be put down to ignorance of the laws.

In a separate Which? survey, it was found that 90 per cent were aware of the penalty changes.

“Although people seem to be aware of the higher penalties for mobile phone use behind the wheel, many either don’t understand or don’t obey the revised law,” commented Richard Headland, motoring editor at Which?.

“The penalties for using a handheld phone when driving are now stiffer, but to be effective the government must change driver behaviour through better education as well as enforcement.”

The survey also highlighted that only one in ten drivers are aware that it is still legal to call the emergency services while behind the wheel.

Tags: editor at Which, state, accident, Insurance, effect, cannot, prosecution, percentage