New Year’s resolution – get your finances in place by following these simple tips

Here we are in the New Year and again, we have a resolution to sort our finances out, once and for all. With the whole of Europe on an austerity drive, personal financial planning has never been more important, so below are 5 tips from Money Vista that will help you get your finances in order for 2012.

1. Forward plan to save each month

It can be daunting working out if or how much you can save every month, so you may need some help. There are various online tools that can assist you with your financial planning. This savings calculator, lets you explore how much your savings may be worth in future or, alternatively, how to reach a savings target.

2. Get that debt down to a minimum

As simple as it sounds, the first step in getting your debt down is not to require any new debt. Make it an absolute resolution not to take out any more loans and stop paying for things with credit. Cut up those credit cards immediately. Do not cancel your credit cards but if you ask, you can sometimes get a better deal. Try to get as close to a 0% rate as possible.

3. Have a financial clear out

Have you lost track of how many direct debits and standing orders are coming out of your account? It appears most of us have and the average person has 6 coming out at various points in the month. In some instances you may be paying for things you really don’t need, so make a point of reviewing each of these payments and cancel the ones that no longer benefit your life.

4. Protect your assets

There are many things to consider when protecting yourself in the future. Have you made a will? Do you stand to be hit by inheritance tax? Do you think you will need medical cover in the future? Do you think your family will? If any of these issues affect you, it is worth seeking financial advice. Money Vista is an online service worth contacting for help and advice on protecting your assets.

5. Think about retirement

Old age is something that none of us want to think about but unfortunately it’s inevitable. Life expectancy is rising, meaning we are going to live longer. Retirement planning is definitely something worth considering, knowing that you are better protected in the future.

Tags: service, place, austerity drive, planning, medical cover, debt

Millions have a year or more of debt on their cards

It has been reported that millions of borrowers in the UK have outstanding credit card debts of a year or more, with many only managing minimum repayments on their debts in the current outstanding climate. According to the report more than six million people have had an outstanding balance on their credit cards for at least a year.

Research was carried out by moneysupermarket.com, and officials from the firm claim that almost 10 percent of people admitted to paying only the minimum amount off on their credit card debts each month. This has resulted in 14 percent of cardholders having debt on their credit cards for over five years, with the minimum repayments barely covering the interest on their debt.

Industry officials have warned that those paying off their debts with just the minimum repayment each month will not only spend years longer repaying the debt but will also pay a huge amount in interest over the term of the debt. However, in the current financial climate following the credit crisis and recession many cannot afford to pay any more than the minimum.

The average length of time that a balance is left outstanding on a credit card according to the survey results is twenty one months, and officials want to ensure that consumers understand the repayment structure and the consequences of minimum repayments.

An official from Moneysupermarket.com said: ‘Our research reveals credit cards are still playing an important role in the nation’s finances, but in the current climate, it’s more important than ever for consumers to understand the cheapest way to borrow on their cards and avoid getting stung by high interest rates. The most important thing is that consumers understand the implications of borrowing on a credit card and that paying back the minimum amount each month will dramatically increase the total amount they pay back in the long run.’

Tags: Moneysupermarket.com, cheapest way, debt, Credit Cards, outstanding credit card, credit, Credit card, high interest rates

Loan service launched to help consumers avoid loans sharks

A new loans service has been launched in the UK to help consumers get the finance that they need to manage financially without having to turn to loan sharks, according to recent reports. There have been many concerns expressed about consumers that cannot get traditional credit, as many turn to unscrupulous and unregulated loans sharks out of desperation.

The new loans service in the West Midlands has been launched by the National Housing Federation, and it is hoped that it will help consumers that cannot get traditional finance to avoid going through a loan shark. Consumers will be able to borrow up to £500 as part of the service, and this will be subject to a 45 minute interview to ensure that the borrower will be able to repay the loan.

Repayments on the amount borrowed will be paid weekly, and in addition to being able to get a modest loan consumers will also be able to benefit from debt advice. The scheme is being called My Home Finance, and it will offer a range of services including helping consumers to open bank accounts and offering advice on their debt and financial problems.

One concern that some have about the new service is that the interest charged is higher than the maximum level that credit unions are allowed to charge, which is 26.8 percent APR. The new scheme charges interest of 29.9 percent APR during the pilot, and this will then increase to 49.9 percent APR.

An official from the National Housing Federation said: “By offering fair loans at fair prices, we hope to offer an alternative to both loan sharks, who cynically prey on hard up families, and doorstep lenders, who are all too willing to lend cash to the desperate at hugely inflated rates of interest.”

Tags: finance, traditional credit, new scheme charges, personal finance, National Housing Federation, Title loan, debt

Credit card debts soaring amongst pensioners

It has been reported recently that credit card debt amongst pensioners has been soaring, with struggling pensioners sitting on £1.1 billion worth of credit card debt. Financial problems amongst many pensioners have increased as a result of soaring inflation coupled with minimal rates of interest being paid on their life savings.

Figures were released recently by Gfk NOP and showed that pensioners were no spending a fortune collectively on their credit cards each month, with pensioners’ credit card spending values rising by 20 percent since the start of this year. June saw pensioners spend an average of £354 each on their credit cards. The last time this level of spending was reached was at the height of the credit crunch in October 2008.

The total outstanding debt level for June amongst credit card pensioners was £1.1 billion, and this reflect an increase from £900 million from six months earlier. With many pensioners being hit with the rise in the cost of living coupled with the drop in savings interest rates many have had to turn to their credit cards to fund their essential spending, and this has seen the level of credit card debt rocket amongst older people. Many also have additional debts to deal with such as loans and finance, and a recent survey showed that one fifth of those aged fifty five and over still had a mortgage to pay off.

Joanna Parsley, a spokesperson for the consumer group Credit Action, said that older people were in a very vulnerable position, stating: ‘The growing indebtedness of older people is scary. We are talking about a generation who are particularly vulnerable as the income from their savings has been devastated.’

Tags: debt level, fifth, month, Social Issues, debt

Government advises consumers to be aware of payday loan risks

There have been mixed opinions about payday loans over the past year or so, with these loans being highlighted as a result of the rising number of people that have been turning to them because of difficulties in getting credit elsewhere during the recession and financial crisis.

Many officials have expressed concern over the rate of interest that is charged on payday loans, stating that consumers often fail to realise what they are getting themselves into when they take out payday loans because they cannot get finance in any way. However, there are also many people and officials that state that payday loans provide a useful service to those that are in need of finance but can’t get it from other sources because it stops them having to go to loan sharks.

On its DirectGov website the government is now advising consumers to ensure that they learn about the dangers of taking out payday loans before making any commitment, and to ensure that they do not jump in without doing their research as they could otherwise get caught up in a debt trap.

The site states that there are rising numbers of people that cannot get finance from traditional banks and lenders, which means that a rising number of people are likely to go to payday lenders in order to get finance. This could have a further impact on the number of people that find themselves with spiralling debt, which will add to the already worrying personal debt problem that exists in the UK.

The site advises consumers to fully understand the charges and costs involved with payday loans, ensure that they do not borrow more than they need or for any longer than they need to, and to ensure that the lender is a member of the British Cheque and Credit Association (BCCA).

Tags: consumer debt, loan, Payday loan, credit, debt

Billions accrued in debt during downturn

It has been claimed in a recent report that Brits have managed to accrue billions of pounds in debt during the economic downturn as a result of their shopping addictions. Despite the money worries and concerns over job security that have been experienced by many consumers many have continued indulging in their shopping addiction, and accruing huge debts into the bargain.

The comparison website uSwitch claims that British shoppers have managed to accrue £24 billion worth of debt as a result of their recession shopaholism, which is a term that the website uses to describe those that have built up more than half of their debt through purchases of fashion items.

The breakdown provided by the website showed that there were more women than men that were classed as shopping addicts, with three million men and four million women. However, the average debt accrued was higher amongst men, coming to £3425 compared with £3353 for women. Unsecured debt for women in Britain came to £13 billion and this compared to £10 billion for men.

An official from uSwitch said that although finances have been strained for many people many women had continued to follow their idols and buy a range of expensive fashion items including clothes, handbags, and shoes rather than curbing their spending on fashion shopping in order to save money and ease the financial strain. In some cases those that have accrued debt by shopping for non-essentials during the downturn have said that the recession and economic downturn has been the cause of their spending, as they have shopped to cheer themselves up.

uSwitch officials said: “Despite the financial constraints, women have carried on copying the lifestyles and shopping habits of their idols and ignoring the debt they are racking up in the process.”

Tags: finance, consumers, uswitch, debt, report, credit, Financial services, Brits

Payday loans soar due to credit crunch

Payday loans have been at the centre of controversy for some time, and this is largely due to the high rate of interest charged by these lenders on an annual basis. However, some have argues that these lenders receive unnecessary bad press, because the interest charged is not that much providing the loan is paid back in time, and some officials argue that these loans can be very useful for those that desperately need short term financial help.

It has now been reported that the level of payday loans being taken out has soared partly as a result of the global credit crunch, which has left many people short of cash and in financial dire straits. In the space of four years the number of people taking out these payday loans is said to have quadrupled, as more and more people find themselves desperate for cash for a short term period.

The APRs that some of these payday lenders charge has caused a lot of concern over recent years, but for those that only borrow for a short period and repay the loan on time rather than rolling it over the cost of borrowing is not as bad as it sounds. Some charity officials have said that it is preferable for consumers to go to payday loan companies for short term loans to tide them over rather than unscrupulous loan sharks.

Whilst there have been calls for these loans to be banned officials from Consumer Focus said: ‘These products are controversial, but we don’t agree with calls for them to be banned. Outlawing payday loans could leave some borrowers vulnerable to illegal loan sharks. Instead we need sensible safeguards now to stop borrowers becoming dependent on this high cost credit and prevent even more stringent controls being needed in the future.’

Tags: Payday loan, concern, debt, borrowing, credit, rate

Getting better information on credit in current economic and financial climate

The global financial crisis and recession has had a profound impact on the lives of many people in terms of finances, and one of the areas that has been deeply affected by the economic and financial climate over the past couple of years is the financial sector. Read more

Tags: debt, personal finance, Credit history, Credit score, credit, capital one, finance

Increase seen in debt consolidation loan enquiries

According to a recent report the number of enquiries relating to debt consolidation in the UK has been rising, as consumers struggle to cope with their debt and look for solutions to try and ease the financial strain. Over the last couple of years debt problems have become a major issue for many people, with the global financial crisis and the recession taking their toll.

There are a number of options that are available to those that have unmanageable levels of debt these days, and one of these is to consolidate their debts. A debt consolidation loan is designed to allow borrowers to wrap all of their different unsecured loans, credit cards, store cards, etc into one more convenient, lower interest loan.

By consolidating their debts borrowers can enjoy reducing the overall amount of interest that they pay, will only have to deal with one creditor and one repayment each month, and can greatly reduce the amount that they are paying out each month by taking out the consolidation loan over a longer period so that repayments are smaller.

The report claims that over the past couple of years many people have accrued high levels of debt through having to borrow money to manage their day to day costs and even through having to use their credit cards for essentials, bill payments, and in some cases mortgage repayments.

Many of the enquiries that are being received by lenders who offer consolidation loans are from homeowners who want to use some of the equity in their homes to borrow money and repay their smaller debts. Consumers that are looking to consolidate their debts are being advised to compare a range of loans from different lenders to boost their chances of getting the best deal.

Tags: lenders, loan, store cards, finance, debt, longer period, debt consolidation, crisis

Should Brits take out loans for weddings?

As most married couples will already know getting married can be an expensive affair if you want all the trimmings, and those that are looking to have the perfect wedding, entertain guests, provide food and entertainment, and round things off with a romantic honeymoon will know that the cost can run into thousands of pounds.

In the current financial climate it can be difficult for couples to save the kind of money that they need for a wedding within a reasonable space of time, particularly if they also want to put a deposit down on a property. It would therefore be natural to think that many couples look into taking out a loan for their special day.

Many couples do turn to personal or wedding loans in order to pay for the big day, and those that do are advised to look for the best rate of interest and the best deal possible, although some people may be put off from starting their married life in debt.

Whilst those getting married may consider a loan for their big day, recent research has shown that attendees are far less likely to take out a loan in order to pay for expenses at the weddings of their loved ones. In fact, Santander carried out research showing that only 1 percent of Brits would actually take out a personal loan to fund the cost of going to the wedding of a loved one.

Emma Roberts from Santander said: “It’s easy to overlook the cost involved in being a wedding guest but the outlay can be significant, both before and during the big day. The last thing people want to be thinking about when preparing for a loved one’s wedding is the expense involved but costs can quickly mount up.”

Tags: debt, Marriage, whilst, interest, wedding

Consumers saving more and using credit cards less

Recent reports have shown that consumers are getting far savvier about their finances, with many now choosing to save money and shore up their finances rather than splashing the cash on large purchases or spending ruthlessly on their credit cards. This indicates that consumers have become more accustomed to the fact that they need to save money to help them through in the current climate and that they have to be more mindful about their spending.

Prior to the global credit crisis and the recession many of those that are now saving their money may not have thought twice about using the money to purchase big ticket items, splash out on luxuries, and spend on items that they didn’t really need. Likewise, many may not have given a second thought before going out armed with their credit card and treating themselves to pricey luxuries.

However, over the past couple of years many people have realised how important it is to have money put aside to help them through in the event of a financial emergency or if they lose their jobs. With this in mind more and more people are putting money aside and avoiding spending unnecessarily. According to reports a rising number of people are also trying to pay off their debt so that they can be more financially secure in the future.

A spokesperson from ING Direct, which released the report, said that many people were now trying to get over the debt that they accrued over the Christmas period and were focussing on saving or repaying their debt.

He said: “We are also seeing a trend, which is getting stronger and stronger, that people start saving before they make big purchases and use their credit cards less and less.”

Tags: debt, finance, spending, credit, saving

OFT tackles irresponsible lending

Over the course of the decade leading up to the global financial crisis there was a period of easy credit in the UK, and lenders were throwing cash at people and businesses hand over fist in a bid to get their custom. Even those with damaged credit usually had no problem getting a loan or mortgage during this time. However, when the credit crunch swept the nation things came to a head, and over the coming months the banking industry was brought to its knees bringing with it the worst financial crisis in recent history.

Whilst things have improved and the financial sector is slowly getting back on its feet the days of easy credit are definitely gone, and lenders are being far more stringent about who they lend to. One of the main causes attributed to the financial crisis was irresponsible lending from banks and financial institutions, which had been eager to lend money to people without even running checks on whether they could afford to repay it in many cases.

Of course, the financial crisis is something that the UK does not want to see repeated, and with this in mind banks are now being discouraged from falling back into their old ways of lending to anyone. The Office of Fair Trading has recently produced guidance for banks, a requirement of which is aimed at ending the days of irresponsible lending.

The OFT has told the banking industry that it must not mislead consumers when it comes to providing finance, and that stringent checks must be carried out before any finance is agreed to ensure that the consumer is in a financial position to afford the credit being taken out. The OFT sad that is fully expected the industry to comply with this.

An official from the trade association, the Finance and Leasing Association, said that the new regulation would help to protect consumers, ensure that people did not get stuck with debt that they could not afford to take on, and would help to weed out unscrupulous lenders.

The new regulation has also been welcomed by the Citizen’s Advice Bureau, which tackles many cases relating to debt that consumers cannot afford to repay.

An official from the charity said: “Irresponsible lending plays a significant part in many of the debt problems we see in Citizens Advice Bureaux. The focus on getting firms’ practices and procedures right is a big step towards ensuring consumers are treated fairly and not encouraged into taking out unaffordable and unsustainable credit that lands them deep in debt.”

Tags: debt, Fair Trading, lending, nation things, finance

Recreated paperwork could cause problems for borrowers

According to a recent report many lenders tend to misplace or lose loan and credit agreements, and in some cases this paperwork is even disposed of, which means that if and when the banks need to refer to the agreement for any reason they are having to recreate the agreement. Whilst this is not frowned upon there is one problem that has been highlighted, and this is the fact that the recreated document often has discrepancies that leave the consumer even worse off. Read more

Tags: credit, consumer credit lawyer, Mortgage loan, High Court, personal finance, Banking, debt

False sense of security for consumers being asked for minimum repayments on credit cards

Experts have recently expressed concern that many credit card customers may be getting lulled into a false sense of security as a result of credit card companies asking for very low minimum repayments on their credit card balances. Read more

Tags: Stoozing, debt, Lloyds Banking Group PLC, Credit card, credit, lloyds tsb

Huge mortgage gap between those with big deposits and those with small ones

A recent report has highlighted the ever growing gap between mortgage borrowers that have a large deposit to put down compared to those that have only a 10 percent deposit. Read more

Tags: mortgage deposits, number, housing, competitive rates, Mortgages, eighteen

Lower income consumers can apply for many credit cards

It has recently been revealed that despite the tighter credit conditions that have come into play since the onset of the global credit crunch many consumers who are on relatively low wages are still eligible to apply for the majority of credit cards that are available on the market. Read more

Tags: debt, Credit Cards, card, low income families, big fuss, labour credit cards, interest, determining eligibility

Mortgage war could be sparked by HSBC

Earlier this month the High Street bank, HSBC, which also owns the Internet bank First Direct, announced that it was cutting mortgage loan rates even for those with smaller deposits. Read more

Tags: Mortgages, mortgage debt, lloyds, hsbc, debt, property, hsbc mortgages, small deposit mortgages

Debt management firms warned by government

Officials from the government have been warning debt management firms to stop misleading consumers with regards to getting their debts written off. Read more

Tags: prosecution, information, debt management firms, vulnerable consumers, credit card debt, final decisions

Equity being used by older people in debt

According to a recent report a rising number of older homeowners are using the equity in their homes in order to pay off debts. Officials are concerned that this increasing trend is leaving more and more people without any means to support themselves in their retirement. Read more

Tags: debt, offering, debt consolidation, industry, equity release, average age, order, equity

Improve your credit rating, advises expert

People who do not have a very good credit rating should make an effort to improve it, an expert has advised.

Richard Brown, the chief executive of Moneynet.co.uk, has said that lenders will not want to give out loans to consumers who have poor credit ratings, regardless of their job or earnings.

“At the moment, lenders are only really lending money to people who are demonstrating that they can repay it, so the ground rules have changed dramatically in the last 12 months or so,” Mr Brown commented.

He advised people with poor credit ratings to make an effort to improve them by making regular repayments on loans every month and trying to pay off more than just the minimum amount.

According to Credit Action, the average amount of interest paid by each household on their total debt is about £3,790 a year, which is up by £343 from a year ago.

Tags: debt, credit, credit rating, Credit Action, finance, Loans, repayments, ground

Graduates urged to prioritise costly debt

Graduates may have to put up with student loans but credit card debt should be paid off as quickly as possible, an expert has urged.

Richard Brown, chief executive officer of financial information website Moneynet.co.uk, remarked that university leavers have a considerable period in which to repay their student loan and should prioritise the repayment of more expensive debt first.

He explained that student debt is “a fact of life unfortunately, whereas carrying big wads of debt on a high interest credit card isn’t”.

Mr Brown made his comments after his organisation published advice to students, urging them to stop “fretting” over the amount they owe through normal student debt and to concentrate first on paying off their most expensive borrowing.

Recently published figures compiled by Credit Action showed that at the end of April, total levels of personal debt in the UK stood at £1,436 billion, an increase of £110 billion compared to 12 months previously.

Tags: information, Student loan, advice, expert, consumer debt, debt, credit

Repayment Vs Interest Only Mortgage

If you are on the lookout for a mortgage to purchase a property in the UK you could find yourself in something of a minefield, with a wide range of mortgages to select from, each offering a range of benefits to suit different needs and circumstances. However, all of these mortgages come under the umbrellas of either repayment mortgages or interest only mortgages. Read more

Tags: repayment mortgages, interest only mortgages, account, finance, debt, original mortgage, investment, interest only mortgage

Benefiting from credit cards as a student

As a student in the UK it can be very difficult to maintain a healthy cash flow, and often students need a little flexibility and assistance when it comes to finances, whether it is for books, entertainment, or just general purchases such as travel costs or groceries. This is particularly true for students that are living away from home, who often aren’t able to get financial support as readily as those living at home with parents and who also have the added cost of bills and rent to deal with.

Read more

Tags: financial need, financial products, debt, student credit cards, finance, balance, added cost, uk

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

1 in 10 clueless about their debt

Britain is a nation “in the dark” about its finances, a new report has suggested.

A report published by CreditExpert has revealed that just one in four people can accurately say how much they have left to repay on their loans.

Furthermore, one in ten people are unsure as to their actually level of debt, the study revealed.

The research also highlighted that many Britons are not confident about applying for loans, with more than one in five believing they would be refused credit of £1,000.

Furthermore, four out of ten would not expect to be authorised to borrow £10,000 and 66 per cent of people believe they could not take out a loan of £30,000.

The research follows a further recent study, conducted by Alliance & Leicester which showed that Britons are trying to cut back on their spending and save money in order to improve their financial health as the cost of living rises.

Tags: alliance & leicester, debt, britons, order, recent study, research, CreditExpert, loan

Debt cycle ‘carries on’ with payday loans

Regularly using payday loans to get through until the next paycheque can lead people into a spiral of debt, National Debtline has warned.

Spokesperson Beccy Boden Wilks said that payday loans can have high interest rates and consumers can often find cheaper borrowing options.

Ms Boden Wilks warned that people using payday loans on a regular basis may have a more serious underlying debt problem and advised them to have a close look at their budgets as well as to possibly seek advice on how to deal with their debts.

“If you’ve run out of money [ahead of your next paycheque], so you feel that you need to use these sorts of services, then there’s obviously a problem,” she commented.

Ms Boden Wilks added that people using these services should review their spending and budgets.

The take-up of short-term payday loans has risen by 55.4 per cent since last September, according to Moneysupermarket.com.

Tags: finance, problem, Business Finance, debt, Boden Wilks, Financial services, national debtline, spending

National Debtline: Fewer balance transfer deals affects other personal finances

The drop in the availability of cheap interest-free balance transfers that have been popular in recent years could have a knock-on effect on other aspects of people’s personal finances, according to National Debtline.

Consumers are finding it increasingly difficult to find cheap balance transfer deals for their credit card debt, which is impacting the number of mortgage arrears as people stop paying their mortgage to counterbalance the problem.

In the past many borrowers would transfer their debt to another near-nought per cent deal, however such cheap, accessible credit is now harder to come by, although the organisation said that some reasonably good deals are still available for those with a clean credit rating.

Commenting on the future outlook for consumers, Beccy Boden-Wilks, a debt adviser and spokesperson for National Debtline, said: “Those cheap credit, nought per cent balance transfers are going to be very hard to come by, if not non-existent.”


Despite the current difficulty of managing large amounts of debt, around 716,600 people will try and transfer around £1.1 billion a month between credit cards this year, according to Sainsbury’s Finance.

Tags: cent deal, debt, Sainsbury's Finance, consumers, Beccy Boden-Wilks, national debtline, accessible credit, Money Management

Credit card balance transfers better value than personal loans

Consumers looking to take out a personal loan may want to consider a credit card balance transfer instead, claim financial experts.

According to research from everyinvestor.co.uk, a borrower requiring £10,000 could save over £1,000 over a four year term if they choose to transfer their credit card balance rather than applying for a loan.

Chris Gilchrist, editor with the consumer advisors, said that lenders have raised interest rates on personal loan rates sharply in the past six months.

“Credit card companies continue to offer lengthy zero per cent balance transfers and even though you may pay balance transfer fees, this still works out well below the interest you would pay with a personal loan,” he added.

Industry commentators have predicted the end of the zero per cent interest balance transfer for the past 18 months according to the experts.

However, credit card companies are expected to continue to offer the rate in a bid to attract more customers.

Meanwhile, new research from Fool.co.uk has revealed that up to one in eight credit card holders in the UK have had their credit limits cut.

Tags: year, industry commentators, loan, interest balance, interest rate, Business Finance, debt, research

Switching loans could save consumers money

Consumers with unsecured personal loans could save up to £1.25 billion in interest by switching to a different provider, according to new research.

Findings from uSwitch.com reveals that those borrowers with an £8,000 loan over five years could save £166 by switching to the current best buy interest rate of 6.5 per cent.

Mike Naylor, personal finance expert at uSwitch.com, blamed “confusion and apathy” for holding consumers back from making savings on their existing loans.

“2.5 million people think the savings from switching a loan mid-term are too small. 1.6 million loan customers said it’s too much hassle and the most the discouraging news is that 14 per cent wouldn’t even consider doing it,” he said.

uSwitch urged consumers to consider changing their loan provider while they still can as many providers are now operating personal pricing, an option which prevents customers comparing prices.

Meanwhile, figures from the Office of National Statistics revealed that disposable income is at its lowest level in a decade.

Tags: GBP, Switching, finance, best buy, personal finance expert

Consumer wellbeing ‘worsening’

Many consumers are facing increasing strain on their day-to-day living costs and spiralling levels of debt, according to research from financial experts.

Findings from the Financial Reality Index from the Alliance Trust, which analyses factors underlying consumer wellbeing, has revealed its biggest fall in 18 months.

The index decreased by 10 per cent, from 88.6 in the previous quarter to 79.7 per cent in the fourth, one of the lowest levels in the study’s 11 year history.

Shona Dobbie, head of the Alliance Trust Research Centre, said: “Our measure of consumer wellbeing shows a worsening picture not only for household budgets, but for consumers’ net wealth and the economy as well.”

She added that, although consumer spending does not appear to have taken stock of the financial reality, “we expect consumer spending to slow further over the next year”.

Over spending for the past two years is supposedly to blame for the current pressures upon budgets with higher food and fuel prices and heavy levels of debt and mortgage payments.

Meanwhile research from the Alliance Trust has shown that the over-75s and under 30s suffer the worst rates of inflation.

Tags: Dobbie, household budgets, factors underlying consumer, picture, mortgage payments, trust research

“Incredibly important” for debtors to be aware of solutions

It’s “incredibly important” that those seeking debt help are made aware of all solutions available to them, says a debt advice service.

Debt Help UK said that being aware of all the solutions that are available can make the difference between finding an appropriate solution and having a solution forced upon her.

Iain Wrenshall, director of Debt Help UK, said: “As your situation degrades, then your options generally become narrower and, ultimately, your creditors have the sanction to make that choice for you.”

“It is important that people don’t bury their heads in the sand, but look for free advice which is going to help them understand the solutions and the options open to them,” he concluded.

According to research from uSwitch.com, almost one in four UK adults are finding debts unmanageable – 9.5 million have maxed out on one form of credit in the last six months and 38 per cent have had a credit card application rejected.

Tags: uswitch, Debt Help UK, free advice, United Kingdom, debt

Spenders need to work out their budgets

Sitting down and working out your personal budget is the best way to begin reassessing your money, according to financial experts.

The Consumer Credit Counselling Service (CCCS) said that the most accurate way of accounting for spending is to make an annual budget and then divide it by 12.

Frances Walker, spokesperson for CCCS, said: “It is also a good time to look at income maximisation; making sure you are getting all the benefits and tax credits you are entitled to. There is lots of help out there, particularly online.”

She added that consumers in need of financial advice would be better off going to a debt advice charity rather than a bank.

“With banks they may just say ‘we’ll just give you one consolidatory loan‘”, she concluded.

According to Credit Action statistics updated on January 4th 2008, the total debt for the UK stands at £1,400 billion with the average household owing £56,234.

Tags: consolidatory, Frances Walker, Credit counseling, January, uk, credit

Personal debt soars

Britons are paying a whopping £93 billion a year in interest on borrowing, it has been reported this week.

That is an increase of £12.7 billion on the figure for the same time last year, raising widespread concerns that many people are going to be unable to manage their levels of debt.

Increasing domestic fuel bills combined with tightening borrowing conditions – and the short-term effect of Christmas spending – have led to a particularly tough environment.

The average household now pays £3,744 per year in interest on borrowing alone – an increase of £517 compared to last year.

According to uSwitch, which carried out the research, around one in four people acknowledge that repayments on their debts are not manageable.

Accountants KPMG have also warned that personal bankruptcies are likely to increase to 130,000 in 2008.

Spokesperson Mark Sands told the Daily Mail: “Those in difficulty will find that their options are becoming limited.”

Tags: week, spending, Financial services, Christmas spending, repayments, debt, spokesperson, personal debt

Mortgage lenders ‘targeting better qualified people’

The mortgage crunch has prompted mortgage lenders to target “better qualified people and lower risk people”, according to industry experts.

FirstRungNow.com said that products such as guarantor, professional, joint and graduate mortgages are now “coming to the fore”, as market conditions has made lenders keen to use these services.

Helen Adams, director of FirstRungNow.com, said: “The lenders aren’t necessarily put off by people being credit averse or being in debt despite the market conditions.”

Lenders have confidence that graduates and professionals will be able to pay their mortgages off, she said.

Ms Adams stated that lenders take a “holistic view” about earning versus debts and “won’t lend unless they think that the risk is reasonable to them.”

Scottish Widows, one of the leading banks in the graduate mortgage market, currently offers a 102 per cent mortgage to graduates.

This is open to all graduates of recognized universities under the age of 40.

Tags: guarantor, averse, view, mortgage, age, graduate mortgage

Tips on getting a loan with bad credit

It is nothing unusual these days to have damaged credit, and in fact and increasing number of us are finding out just how difficult life can be with poor credit. Read more

Tags: legwork, finance, Loans, climate, bad credit loans, debt, major problems, personal loans

The importance of keeping your credit clean

Over the years more and more of us have become reliant on credit for the things that we need in life, whether it is a new home or a new car or whether it is to fund a wedding, and education, or even a luxury holiday.

Most of us would be lost without our credit cards, and the majority of us take the ability to be able to open a current account for granted. Yet, if you find yourself facing severe credit problems you could find all of these things impossible, leaving you to deal with a very bleak and difficult financial future.

This is why it is so important to keep your credit in good shape. Those with good credit can enjoy a far easier financial future, with access to a choice of financial services and products from a wide choice of lenders. People with good credit can get the best interest rates, making it more affordable to take out finance. Whether you are looking for a mortgage, a personal loan, a secured loan, a credit card, a store card, or any other type of finance you will find that having good credit can make a huge difference to the amount you pay on your borrowing – and whether you are even eligible to get the credit that you need.

Your credit can be affected in a number of ways. Firstly, it is important to remember that having no credit rating can be as bad as having a poor credit rating, as it means that lenders have no way of knowing whether you are going to be a viable risk when it comes to taking out finance. Therefore, it is important to kick start your credit as early on as possible. One thing that has a major effect on your credit rating is your repayment habits – those that pay their bills and debts on time, regularly, and for at least the amounts requested will enjoy a good credit rating and access to some great deals on finance.

If, however, you make regular late repayments on your financial commitments, or worse still you default on your financial obligations, you will find that your credit rating rapidly declines, and this is where you will start experiencing problems. Those with poor credit will find that their access to finance is greatly reduced, and many lenders will not take risks on those with damaged credit, particularly in the current economic climate. Those with very bad credit may find that they cannot get any form of unsecured finance, and will have to rely on credit that is secured against their homes – even then the interest rates charged are likely to be very high.

There are other factors that can adversely affect your credit, such as fraudulent activity, out of date information, or mistakes on your credit file. This is why it is advisable to order a copy of your credit report on a regular basis and checking through the information on the file. You may find that there are mistakes and inaccuracies that could having an adverse effect on your credit, out of date information that needs to be updated, or even suspicious transactions that could result in your credit rating taking a knock. If you pick up on anything like this you should contact the credit reporting agency as early on as possible to get it rectified.

You should also bear in mind that a log is made on your credit file each time you apply for finance, and the more rejected finance applications that are logged onto your file the more your credit rating will suffer. Therefore if you are turned down for finance you should resist the temptation to keep on making applications. Instead, try and find out what may have affected the lender’s decision by going through your credit report, and wait at least three months before you make another application.

Related articles:

• How To Build Up a Good Credit Rating
• Credit Building Tactics

External links:

• Credit Reports
  Every time a customer applies for a financial product such as a credit card, the credit company will consult that customer’s credit file. This file records all their financial activity in terms of credit applications and banking activity.
• Credit Cards Designed To Improve Your Credit
  Credit cards have become very popular over the years because of the ease, convenience, and flexibility that they provide, and these days there are many different types of credit card available
• Applying For Credit Cards When You Have Bad Credit
  For those with a poor credit score, getting a credit card is harder. However, there are solutions and we will discuss and offer these in the article.
• Using Your Credit Card To Build Credit History
  Let’s say you want to buy a house, but you need to get a mortgage to help pay for the house. However, you have no credit history to speak of, so how can you apply for the mortgage to get your dream home?

Tags: poor, credit, report, Loans, debt, bad, personal, rating

Debt becomes ‘norm’ for Brits

Getting into debt is now accepted as normal and in many cases necessary, an industry expert has said.

Alastair Mathews, director of policy educational charity pfeg, explained that if people wish to go to university or buy a house, most will rely on loans to do so and will thus not be able to avoid getting into debt.

With credit easily available to those needing it over the past few years, it has been easier than ever to build up considerable debt.

“We have almost officially built debt in to the system now,” said Mr Mathews.

He continued: “We have a changing culture from the traditional British attitude of wanting something and saving for it – where maybe you waited for half a lifetime for it – to now, where the feeling is ‘if I want something, I’ll have it’.”

According to statistics from Credit Action published this month, total personal debt in Britain stands at £1,380 billion. This figure has gone up by an impressive £120 billion (10 per cent) in the past twelve months.

Tags: debt, director, industry expert, figure, business

Secured loans market rocketing

The personal secured loan market in the UK is predicted to grow to in excess of £10 billion by 2011, it has emerged.

Information collected by Datamonitor revealed that the growth in this type of loan from £7.5 billion in 2006 is prompted largely by increased demand to consolidate debt.

This growth is remarkable particularly because some lenders have pulled out of the market following the sub-prime crisis that hit the US this year, making lending increasingly tight.

Maya Imberg, analyst with Datamonitor’s Financial Services practice, commented: “The US sub-prime mortgage crisis and global credit crunch will affect the market in the short term.

“However the UK secured personal loans market continues to portray an encouraging future in the long term.”

Among providers pulling out of the secured loan market are Kensington Personal Loans, the London Mortgage Company, Southern Pacific Personal and GMAC-RFC.

Meanwhile, those looking to take out a secured loan will find prices going up with tighter borrowing criteria, making it increasingly difficult to do so.

Tags: sub prime mortgage crisis, secured loan market, US, debt, market, london, Datamonitor's Financial Services, mortgage

Financial regulators are ’sleeping on the job’

A debt charity in the UK has accused financial regulators of being ‘asleep on the job’ stating that many consumers in the UK are being pushed into soaring levels of debt by irresponsible lender but that regulators are failing to take the necessary action.

According to officials from the Citizen’s Advice Bureau, which deals with many debt related issues, there have been over 1.7 million debt related issues to be dealt with by the bureau over the past year, which reflects a rise of 20% on the previous year.

Officials state that although the CAB is doing all that it can to help consumers deal with their debt related issues, it is up to financial regulators to try and tackle irresponsible lending in order to tackle soaring debt levels. The charity is currently embarking upon a conference to help consumers to deal more effectively with money issues, and this problem has been highlighted as part of the conference.

One CAB official stated: “Time and time again, we come across people in desperate straits who need not be there if the firm who lent them money had acted responsibly on day one. And while some regulators have taken action on scandals like the mis-selling of payment protection insurance, others seem to be asleep on the job.”

The Cab says that rising debt is one of the major issues facing the economy and that action must be taken by the financial services industry to combat the problem.

According to recent data spending on plastic has rocketed by nearly 50% since 2002, and in 2006 Brits spent around £511 billion on credit, debit, and store cards. However, figures from the Bank of England show that there has been a steady decline in the amount owed on credit cards since the start of 2006.

Alan Wright
14th November 2007

Tags: debt, finance, credit, plastic, cards

Credit card users wise up to debt risk

A growing number of credit card users are becoming wise to the perils of racking up big debts.

With recent research showing that the average Brit spent a whopping £397 on Christmas presents last year, and that 76 per cent plan to spend even more this year, concerns about debt have been growing.

However, a new survey published this week shows that one in four shoppers are determined not to let the debt build up on their plastic.

The research was carried out by debt counselling service Thomas Charles.

Director James Falla told savespendborrow.co.uk: “People are starting to think: ‘what am I going to do when it comes to paying this back?’”

“They are being told that their houses aren’t rising quite so quickly in value, and I think those things are actually starting to filter through to the general public and they are thinking: ‘If I go on spending as I am, maybe I’m not going to be able to sweep it under the carpet by remortgaging, like I did before’.”

Nevertheless, while this is a positive sign, warnings were sounded earlier this week by Callcredit, which claimed that a large number of people in debt are “in denial” about their own responsibility for it.

Tags: television, cent, filter, debt, Credit counseling, debts, Brit

Loans ‘good’ for debt consolidation if used wisely

People considering taking out a personal loa as a means to manage their finances are advised it is sensible if done sagely.

According to Moneyextra.com, if consumers are going to use this means to tame their finances, they must be careful not to build up debt on an overdraft or credit card at the same time.

Robin Amlot, senior editor at the financial services company, explained that debt consolidation is the “key reason” people chose to take out personal loans these days.

He advised a course of action for those doing so, saying: “Two key factors about taking out an unsecured personal loan as a way of consolidating your debts is that you are fixing your interest rate – so you know what you’ll be paying each month – and you are fixing a date in the future at which you will have cleared the debt.”

Recent research by Thomas Charles debt consultancy in association with YouGov found that 15 per cent of people in Britain are in serious debt, with men being more indebted than women overall.

Meanwhile, one in four Britons plan to avoid spending money on credit cards this Christmas.

Tags: credit, personal, Loans, card, consolidation, debts, debt

Figures show increase in bankrupt pensioners

Recent figures have shown that the number of pensioners in the UK that are going bankrupt has doubled in the space of five years.

There are now twice as many pensioners declaring themselves bankrupt as there were five years ago according to the figures. In the past year around 7% of bankruptcies were made up of pensioners, but in 2002 the number of pensioners that made up total bankruptcy figures equated to just 2% according to records.

Some experts have stated that it is increased life expectancy that has had an impact on the finances and savings of pensioners, tipping many over the financial edge and resulting in bankruptcy. This, state experts, has been made worse by the rises in the cost of living, fuel, and other areas, which has put further strain on pensioners’ finances. The research also shows that there appear to be more pensioners going bankrupt in rural areas compared to urban areas.

One insolvency expert stated: “More and more pensioners are going bankrupt as they struggle to repay debts when their pension is their sole source of income. Although attitudes towards bankruptcy have changed dramatically since the days of debtors’ prisons, the older generation still feel the stigma of bankruptcy and are reluctant to ask for help until it’s too late.”

Around 1250 bankrupts around the UK took part in the research. It is thought that the reason for the higher concentration of bankrupt pensioners in rural areas is the result of fewer work opportunities and higher transportation costs.

Some industry officials state that the cost of food – on which many pensioners spend a large proportion of their income – is contributing to the financial strain faced by many in this age group. Food price inflation rose from 2.5%in July to 2.8% in August according to figures.

Tom Smith
3rd November 2007

Tags: pensioners, finances, debt, money, life, bankruptcy, longer, bankrupt, costs, age

Debt advisers expecting flood of enquiries

According to a recent report debt advisers across the UK are gearing themselves up for a flood of debt related enquiries as thousands of fixed rate mortgage deals come to an end. Many consumers across the UK took out fixed rate deals in 2005 for a two year period, with a low fixed rate of under 4.5% in many cases.
However, since that time interest rates have rocketed, with a series of five interest rate hikes in the space of a year, taking the rate up to 5.75%.

The credit crunch that was sparked in the United States sub-prime sectors has also had global repercussions, and has resulted in some lenders hiking up their mortgage rates even further. This means that the thousands of people that will be coming out of their fixed rate deals will not only face a huge rise in their interest rates and mortgage repayments, but will also find it increasingly difficult to remortgage to a more competitive deal.

Even those that switch to another fixed rate will have to fix at a far higher rate than they did in 2005, which means a huge rise in their monthly repayments.

It is thought that in the coming months around twelve thousand homeowners will see their fixed rate periods come to an end, and will face repayment rises of 40%. This means that many will have to find hundreds of pounds extra each month in order to continue with repayments on their mortgages, and this could send many households into the red, tipping them over the financial edge and leaving them facing repossession.

All homeowners that are due to come out of their fixed rate deals will face these problems, with many lenders having hiked up their standard variable rates to 8% or more. However, sub-prime borrowers will face severe affordability problems, as many sub-prime lenders have increased their rates to beyond 10% according to some experts.

It is thought that both the level of debt enquiries and the level of repossession will increase over the coming months as a result of this situation. The Consumer Credit Counselling Service has announced that it is opening a specialist repossession advice centre to deal with the severity of the situation.

Tom Smith
25th October 2007

Tags: Mortgages, advisors, credit, deals, end, period, consumer, fixed, introductory, debt

GFA found to be ‘feasible’

The Thoresen Review of Generic Financial Advice released yesterday has concluded that it is a “feasible” project.

Appointed by the Economic Secretary to the Treasury, Otto Thoresen carried out an examination of the practicality of providing a national platform for generic financial advice.

The investigation found that the benefits of delivery such a service would “outweigh costs by 3.5 to one”.

It also set out the most important qualities for a national GFA service as found in consumer research. These stated that it should be “supportive and informative” as well as “persuasive” without being critical.

Furthermore, it should be “available to all” and “not linked to a product sale” while also be “jargon busting”, advising on debt management, taxation and benefits.

Mr Thoresen said: “Complete impartiality and effective marketing will be critical. But it’s also essential to design a system which will be of genuine benefit to people and which can be sustained over the longer term.

“We are currently running pilot schemes to test out elements of a national system and the findings will enable us to develop the proposals further in the months ahead.”

The review’s final report will be published early next year.

Tags: economic secretary, consumer, important qualities, debt, Pension

Abbey slated over 125% mortgage

Amidst the turmoil and chaos that has hit the financial and mortgage markets over the past month, high street bank the Abbey has announced the launch of a 125% mortgage deal for first time buyers and other property purchasers, and this move has been strongly criticized by many financial professionals.

The mortgage allows consumers to borrow over and above the value of the property, but experts state that many consumers could find themselves left in negative equity as a result of taking on these loans.

Experts state that if consumers default on the 125% mortgage they could quickly find themselves locked into negative equity, and this could be further fuelled if, as expected by many analysts, property values in the UK tumble over the coming months. The government has been urging financial institutions to be more responsible with lending in light of the current financial situation, and Abbey is now being accused of ignoring this advice.

The Abbey is offering consumers the opportunity to borrow 100% of the property value, and an additional £25,000 on top. The recent chaos with Northern Rock has increased concerns over irresponsible lending by financial institutions, and many experts are now accusing the Abbey of further fuelling the debt crisis in the UK by offering this type of mortgage in the current economic climate.

Officials from the debt charity Credit Action have commented on the availability of this 125% mortgage loan, and one official stated that the loan posed ‘real dangers’ to borrowers, adding that anyone that decided to take on this type of loan would have to be ‘incredibly bold or incredibly stupid’.

Tom Smith
24th October 2007

Tags: abbey, buyers, cost, first, house, time

Don’t bail out friends and family with loans

A debt advice agency in the UK has warned that lending money to friends and family could have an adverse effect on both the lender and the borrower.

Officials from the Debt Advice Bureau claim that it is better to offer family and friends advice and support when they run into financial problems rather than throwing money at them by way of loans. In many cases these loans are not fully repaid and can put a strain on the relationship, and often this type of action results in people becoming reliant on loans from family and friends to bail them out if they get into financial difficulties.

Officials from the Debt Advice Bureau state that consumers should help family and friends to overcome debt and finance related problems rather than encouraging them to rely on others to help them out financially, as this can simply lead to a cycle of debt, and could even lead to the borrower getting themselves into debt in order to help out the family member of friend, which can make matters even worse.

One official from the bureau said that by lending money to friends and family consumers could be making the problem worse for all concerned.

He stated: “You don’t want to be laying the groundwork that every time they have a slight cashflow problem, you come to the rescue.”

Official figures show that in many cases the money that is lent to friends and family members is not received back in full, and in some cases is not repaid at all.

According to the results of a recent survey, only around 58% of 70% of consumers that had loaned money to family member had been fully repaid. Of the 59% that had lent money to a friend only 27% had been fully repaid. 

Tom Smith
6th October 2007

Tags: owe, pay, family, cost, friends, Loans, debt, back

Students protest against HSBC

Students in the UK have launched a protest against one of the UK’s leading banks, HSBC, and the protest has been quickly gaining popularity through the Facebook website.

Students are now threatening to boycott HSBC over new regulations that will mean the end of the hugely popular three year interest free overdraft facility on graduate accounts with the bank.

Many graduates have benefited from this three year interest free overdraft facility with the HSBC over recent years, enabling them to enjoy a financial lifeline without paying interest between leaving university and starting work.

However, the bank has stated that many of these accounts were abused, and this combined with high levels of bad debt have resulted in the bank having to make a commercial decision to scrap the three year interest free overdraft facility.

However, students are arguing that the reason they joined the bank in the first place was to be able to take advantage of these popular graduate accounts. The protest comes at a bad time for the bank, which along with other banks in the UK, is now vying for the business of new students that are starting university as the academic year kicks off.

One student stated: “They’ve shot themselves in the foot to be quite honest. Why would they want to alienate themselves from graduates who’ll be earning high salaries in years to come?”

Another stated: “I am so disgusted with HSBC right now – it actually makes my blood boil… Never before have I lost so much faith in an organisation. As soon as I can I am closing my account, moving my ISA and finding a new decent bank.”

Tom Smith
6th October 2007

Tags: bad, free, accounts, hsbc, students

Students need to be more careful over getting into debt

According to a recent report the level of student debt in the UK is on the up, with many students graduating from university having racked up huge levels of debt along the way.

One credit reference agency is now urging students to think very carefully before getting themselves into debt, and to ensure that when they do take out credit cards and loans that they use the money sensibly and for necessities, and they make the repayments sensibly and on time.

Melanie Mitchley, an industry expert from the firm Call Credit has stated that students need to be mindful of the effects of getting into debt, and need to be careful about building up debt. She stated that new students need to manage their finance more sensibly, and need to keep on eye on their finances.

According to Barclay’s figures former students have been graduating with debts that are in excess of £13,000 on average. Another survey into student debt indicates that students could soon be graduating with average debts of around £20,000.

Ms Mitchley stated: “We are urging all students whether freshers or in their final year to be aware of the potential pitfalls if they don’t take control of their financial affairs. Our experience has shown that taking on credit needn’t be a problem if you manage your finances well and ensure you keep up your repayment.”

Another survey carried out by the Halifax showed that credit cards, overdrafts, and loan were amongst the most common forms of debts for students, with 43% of students surveyed having borrowed on credit cards, 73% using an overdraft facility, and 83% having taken out a loan.

One Halifax spokesperson stated: “These are significant sums for anyone, let alone someone who is not yet working full-time.”

Tom Smith
5th September 2007

Tags: interest, repayments, credit, owe, cards, debt

Could bankruptcy be the best option for you?

Most people are only too aware of the concerns over the UK’s growing debt mountain, and over recent years an increasing number of consumers have found themselves with growing levels of debt in the form of credit cards, loans, store cards, and more.

As a result of this many have struggled to keep up with repayments, a matter which has been made worse by rising interest rates and repayments for those with variable rate loans and mortgages. The UK has seen levels of bad debt and insolvencies rocket over recent years, with an increasing number of people teetering on the financial brink because of their debts.

One debt charity, Credit Action, has stated that despite the stigma and the potential problems that are linked with bankruptcy many consumers that are having real debt problems could actually benefit from wiping the financial slate clean and declaring themselves bankrupt. The charity has pointed out that bankruptcy is not an easy route, nor is it the right route for everyone. However, as a last resort for those in severe debt that can never be repaid it can be effective and can give them the fresh start that they need.

Credit Action officials do point out that the consequences of bankruptcy can be far reaching, and getting future credit could prove impossible for many. However, one official from the charity stated that although it is not a step that should be taken lightly it is a course of action that could prove the most effective for some people.

He stated: “Bankruptcy is really the option of last resort, but for some people it is the right thing to do if they’re never going to be able to pay their debts back.”

There are other alternatives available for those with a high level of debt who are experiencing difficulties making repayments. This includes Individual Voluntary Arrangements, which are considered to be a softer alternative to bankruptcy, informal arrangements with creditors, and debt management plans. 

Tom Smith
20th September 2007

Tags: repayments, Loans, idividual, iva, arrangements, bankruptcy, debt

UK in debt denial

Some four million people are considered ‘overindebted’, but the majority are in denial about their finances and therefore do not seek advice assistance.

A survey conducted by debt management firm Chiltern found that one in 16 Britons spends over a quarter of their income on repaying debt but just one in 45 admit to struggling financially.
“There are lots of people who are officially overindebted, but two-thirds of them don’t think they have a problem,” said Joanne Gill from Chiltern.

“Unfortunately debts don’t go away, they need to be repaid and ignoring them will just make the situation worse. Anyone who is paying a quarter of their income to service unsecured debts should get help to put those repayments on a sustainable footing before the situation gets worse.”

The research found that people aged between 35 and 44 were the most heavily in debt, with East Anglia proving to be the most indebted region.

Whether they admit it or not, it seems that money is still on the brain for many people in the UK. A recent study from Alliance & Leicester revealed that 3.4 million Britons consider money to be the biggest concern in life, with 18 per cent worrying about it every day.

Tags: majority, britons, Britons consider money, income, Chiltern, survey, debt, denial

Consumers advised to save for Christmas

Despite the fact summer has just arrived, consumers are being urged to start thinking about Christmas and begin to save now.

While most people will be considering what summer clothes to add to their wardrobe, Fool.co.uk suggests that people should in fact already be putting money aside to provide themselves with a healthy spending pot by the time the festive season approaches.

We are now well into the second half of the year and there are only around 130 shopping days left before Christmas.

However, most consumers are not saving anything for the festive period despite the fact that we spend more at that time of year than at any other point in the calendar.

And it’s not just presents, with a host of celebratory events meaning we spend huge sums on food and drink, whether at home or at bars and restaurants, during the Christmas period.

As a result the New Year often sees a significant increase in people suffering debt problems, meaning it is important to begin saving now to avoid the post-Christmas blues being combined with hefty credit card bills.

Tags: summer, Opinions, huge sums, anything, shopping, period, festive season approaches

Is fixing your bills a good idea in light of interest rate rises?

The recent interest rate rises enforced by the Bank of England have hit many homeowners really hard, leaving them with very little in the way of finances due to rising repayments. In light of these rises, many people are now wondering whether it might be a good idea to fix not only their mortgage but also other payments as well in order to benefit from increased financial stability.

Interest rates have gone up five times in the past year, with rises of 0.25% each time, and each of these rate rises has added a significant amount to the repayments of many homeowners, pushing many into the red. With these increased repayments along with the threat of further interest rate rises some experts feel that fixing as many payment as possible, including a mortgage, could prove beneficial in terms of financial management, although others feel that this could prove costly in the long run, particularly when interest rates start to fall again.

One industry expert stated: ‘Having certainty of monthly outgoings is worth its weight in gold, especially for people who are stretching themselves to take out the loan. People have been buying two year fixes, but with arrangement fees and other costs so high, we are now seeing more three and five-year fixes being taken out to avoid paying these fees so regularly.’

Another stated: ‘Fixed rates are going up as lenders factor in possible future base rate rises. Trackers are cheaper, but you have to accept that the rates are likely to go up before coming down, so you have to make sure you can afford higher monthly payments. The rates for three and five-year fixes are quite similar, so the key is to do your homework to get the best deal and make sure you are clear how long you want the fix to last for.’

Tom Smith
1st August 2007

Tags: fix, interest, rate, bills, house, debt, home

Card companies spark debt fears with repayment reductions

Minimum repayment levels of some leading credit cards are set to be reduced.

Cards providers have heavily advertised the reductions recently.

However, many in the industry are criticising the new offers, saying that the card providers might be exacerbating the UK’s debt problem.

To take an example from today’s Minimum Repayment Index from price comparison website uSwitch, M&S is reducing its repayment level from three per cent to 2.5 per cent, which might well appeal most to the ’spend today and worry tomorrow’ consumers who are currently racking up debts.

Barclaycard has also recently announced that its rate will be cut from 2.5 per cent to 2.25 per cent.

Lowest of all are lenders such as Bank of Scotland and Egg, who offer a tiny two per cent repayment rate.

Research released by Alliance & Leicester last week showed that the overall level of debt in the UK stands at an enormous £1.3 trillion, with those on lower incomes being particularly badly hit.

Tags: Financial services, Website, uswitch, Index, debt, today

Many people permanently in the red with overdrafts

A recent report has highlighted that by the 20th of each month many Brits find themselves running out of cash and having to rely on their overdrafts to see them through the rest of the month until payday.

In some cases, once payday comes around, Brits are able to slide back into the black for several weeks. However, there are also many Brits that will go straight back into the red, even after their salary has been paid in, because their accounts are permanently overdrawn.

Around two million consumers in the UK are always in the red, unable to pull themselves out of their overdraft debt and therefore having to rely heavily on their overdraft facility. In the past year, according to research, around ten million people in the UK have used their overdraft on at least one occasion. Rising interest rates and repayments may have contributed to this figure, with more and more people having to dip into their overdrafts in order to stay afloat due to rising repayments.

One industry professional stated: ‘It’s no surprise so many people are permanently in the red – with interest rates having risen five times in the past year consumers are not doubt feeling the squeeze. People often dipping into their overdraft need to watch the Effective Annual Rate as some can be punitive and they may find they are better off spending on a 0% credit card in the future.’

Those aged 55 years and over were found to be the best at staying out of the red, with an impressive 64% in this age group managing to stay in the black. This compared to 40% of 18-24 year olds. In the 45-54 age group 5% were permanently in the red.

Tom Smith
31st July 2007

Tags: bank, personal, red, savings, accounts, purchases, current

Divorcee might lose home thanks to husbandÂ’s debts

An unpaid £3,000 debt to the Inland Revenue could force a divorcee out of her home.

The £3,000 original debt, left unpaid for decades by her former husband from whom she divorced more than 20 years, has increased to £73,000, an amount she could only afford to pay if she sells her £150,000 semi-detached house.

“This has come as a complete shock. I don’t really know anything about what’s happened in court and can’t talk about it until I talk to my solicitor,” Vivienne Avis, 52, commented.

Although she has not lived with her husband for the past 20 years, a judge ruled that Raymond’s creditors could demand the sale of the home which was home to the couple when they were living together.

“The interests of the bankrupt’s creditors outweigh all other considerations unless the circumstances of the case are exceptional,” Lord Justice Chadwick said.

Thousands of divorcees whose former spouses are in financial difficulties could be affected by the ruling, which could set a legal precedent.

“It is going to send shockwaves through people like us who believe they have legally binding divorce set bankrupt settlements only to find it is not worth the paper it is written on,” Mr Avis, who contracted the debt, concluded.

Tags: Mr Avis, together."The interests, semi-detached house."This, husbandÂ, debt, Creditor, sale, debts

Chancellor Darling Would Like Longer Fixed Rates

New Chancellor of the Exchequer, Alistair Darling, has indicated that he would like to see longer terms for fixed rate mortgages in the UK.

Darling would like to see more fixed rates lasting up to 25 years and on Monday 9 July he pledged a shake-up of the housing market following concerns that have been expressed regarding lenders only offering short term fixed rates in order to maximise their profits.

If homeowners have to renew their fixed rate deals more often, they will be liable for thousands of pounds worth of charges in arrangement fees, which have rocketed in the last couple of years. As interest rates have risen five times in the last twelve months, consumers are looking to fix their interest rates so they know what their payments will be for a reasonable period of time, but the number of deals beyond two years are few and far between.

The Chancellor said that longer-term fixed rates were available around Europe and would be useful in the UK to reduce volatility. He was unhappy with the incentives built in to products that meant mortgage brokers were more likely to advise homeowners to choose short-term products – and the associated high arrangement fees – some now nearly £2,000.

Mr Darling said that the Financial Services Authority have noted the problem of brokers wanting homeowners to return to them every two or three years rather than every ten or twenty.

The Chancellor also talked about the possibility of building on greenbelt land in the future as the lack of affordable housing in the South East in the last five years was now becoming a problem for the whole country. Last year’s Government target of 223,000 new houses was not met with only 160,000 being built. Mr Darling agreed that planning is a sensitive issue, but whilst determined to protect Britain’s heritage he said that if we don’t increase the supply of houses the problem will get worse and worse and worse. There was no way he would accept that housebuilding should stop.
   
Ex-Chancellor Gordon Brown, now Prime Minister, oversaw house prices that trebled between 1997 and 2007, and promised to end the boom and bust cycle in house prices, but as it is evident that we are coming to the end of a boom cycle in house prices, both Brown and Darling will be hoping that we don’t enter a bust period of falling or crashing house prices. However, with interest rates having risen from 4.5% last August to 5.75% last week the increased payments to be found by most homeowners will bring about a slowdown in the market.

Malcolm Harris, CEO of Bovis Homes, yesterday warned that any further rate rises could bring the housing market to a grinding halt. Average mortgage payments are now at a record level when compared with how much people earn.

Mr Darling acknowledged that housing is a huge issue and concerns more than the buyers, with parents and grandparents keen for their children to be able to afford housing, but a monthly repayment on a £125,000 mortgage s now £130 higher than it was last year.

Tom Smith
16th July 2007

Tags: afford, house, rate, Mortgages, bust, debt, fixed, interest, prices

Holy matrimony – cost of attending wedding revealed

As the British wedding season gets into full swing, the financial implications of attending someone else’s ceremony have been exposed.

Experian has published research which shows that the average British wedding guest will fork out around £386 to go to a wedding.

Rather worryingly, this leads to six per cent of us going into debt and many people will take out a credit card or increase their bank overdraft in order to attend.

Bizarrely, many of us are prepared to put ourselves at a financial disadvantage to go to a wedding that we do not even wish to be at, with 45 per cent of Brits saying that they have been pressured into going.

Much of the money, around £130, is spent before the big day has even arrived, with hen nights and stag dos taking their toll on our wallets.

“Weddings are a time to celebrate but it’s clear that people are increasing their financial stress and spending money they don’t have simply in order to be there,” said Jim Hodgkins, managing director of CreditExpert.

“The cost of getting married and attending other people’s weddings is often underestimated, but it’s a significant outlay that often hits hardest those who are first time property buyers or those still burdened by student debt.

“As a result, attending lots of weddings in a short space of time can mean your credit rating is adversely affected,” he added.

The research found that the stag night and hen do are the most expensive parts for a wedding guest, while the wedding gift was ranked second.

Buying clothes for the occasion followed closely, while travel, accommodation and drink also have an effect.

Tags: significant outlay, Relationships, debt, short space, GBP, Brits, travel accommodation, wedding season

Debt considered acceptable because of student loans

According to a recent report the popularity of student loans has made debt in the UK seem even more acceptable.

According to the financial education charity Credit Action student loans have become such a norm that being in debt has become something of a fact of life. And according to officials from Credit Action these student loans have nothing to do with a need for money, but more to do with the easy access to student loans.

One official from Credit Action described student loans as ‘government endorsed debt on a massive scale’. Of course, students can find themselves in need of financial aid at some point during their education, but the easy access to student loans has resulted in many students just taking out loans for the sake of it rather than through real need, placing them on a downward debt spiral that could lead to problems later in life.

According to Chris Tapp from Credit Action there is not enough caution exercised with student loans, and the easy access to this type of finance has made debt appear to be acceptable even for the younger generation. With consumers levels in the UK at sky high levels this has raised concern amongst some charities and campaign groups, as those in their late teens and early twenties begin a debt ridden life before they have even completed their education.

According to Mr Tapp student loans enable students to live lifestyles that are beyond their means – something that they then become used to, and something that many have to continue funding through further finance, as their initial jobs after leaving college or university is unlikely to be a high paying one.

Tom Smith
17th June 2007

Tags: student, rate, cash, money, cheap

Knowing Your Loan Penalties

Knowledge is power…

It’s quite easy to find a loan these days. Whatever you want it for, you will undoubtedly find a company willing to lend you the money, even if you have CCJ’s or bad a credit rating. When you’re shopping for a loan you will of course be looking at the interest rates and comparing them to get the cheapest rather than settling for the first one you see. Read more

Tags: loan penalties, bad idea, Loans, payment protection insurance, loan charges, credit card company, loan fees. mortgage penalty

Brits: Debt below £15k is not a concern

Millions of Britons are unconcerned by their growing levels of debt despite recent interest rate rises.

According to the Personal Credit Index survey from CreditExpert.co.uk, six million people would remain unconcerned about their debts if they stayed below £15,000.

That figure does not include mortgages and a further 1.4 million Britons would be happy to rack up £50,000 in debt before becoming concerned.

This is all adds up to a growing level of confidence among Brits, with Experian, the firm behind CreditExpert and the survey, saying that consumer confidence is currently at an annual high.

“The fact that so many Brits are happy with unsecured borrowing of at least £15,000 may seem shocking on first sight but the credit-comfy generation seems to have become anaesthetised to the real implications of mounting debt,” commented Jim Hodgkins, managing director of CreditExpert.co.uk.

“With the current rise in interest rates, many will find that debt they blithely ignored is in danger of spiralling out of control.”

In spite of our apparent apathy towards debt, the survey showed that it remains something of a social taboo.

One in ten of those questioned claimed that their debt problem is their most socially embarrassing life event, putting it well above getting a divorce or being caught using illegal drugs.

Tags: rack, Personal Credit, life, debt, sight

Both parents forced to work

As the cost of running a home continues to grow, new research shows that millions of mothers are being forced to return to work so that they can keep up with bill payments.

Scottish Widows has revealed that 11 million households in the UK are dependent on two salaries to keep up repayments, while the average household with two children is £100,000 in debt.

That figure stands at £20,000 more than a household without children and it is forcing both mother and father to go out and work.

“This reliance on two incomes to buy and run the family home means millions of households are effectively doubling the risk of financial hardship should one of bread winners become unable to work,” said Richard Jones, Scottish Widows’ interim protection market director.

Figures from the research show that many families are struggling due to the levels of consumer debt they have, with a rise in the number of children being linked to the size of the debt.

Almost half (47 per cent) of families have a mortgage, with the debt from this rising from an average of £66,600 for a couple with no children, to £80,200 for a couple with three.

Around 63 per cent have a store or credit card, with the debt for a childless couple standing at £4,300 and growing for those with three children to £6,510.

Parents and prospective parents are advised to set up a savings fund to protect themselves and their children should their circumstances change.

Tags: child, debt, new research, payments.scottish widows, Scottish, incomes, GBP, bread winners

Financial landscape changing for youngsters

Today’s under-25-year-old’s are too saddled with debt to get married or leave their parents’ home but believe that they will be able to get a mortgage soon.

New research by enagage Mutual Assurance shows that this age group is confident of being able to afford a property much earlier than people did in past generations.

The study shows that under-25s are living with their parents three years longer than older generations did and they are also getting married four years later.

However, they anticipate being able to buy their first home one year earlier despite property prices rising.

The reason behind this seemingly skewed view of the future, says engage, is that today’s under-25s are more accustomed to living with debt than previous generations.

“With consumer debt at an all-time high, 125 per cent mortgages readily available and credit at our fingertips, today’s young generation has become more accustomed to living with debt,” said Karl Elliott, engage spokesman. “As a result, attitudes to financial milestones are changing.

“While it is encouraging to see that today’s under-25s are not put off by ever-increasing house prices, it is important that they are as prepared as possible when it comes to savings.

“By putting away a little and often over the long-term, both parents and off-spring can cope better with the financial milestones to come,” he added.

Tags: generation, youngsters, Mortgage loan, older generations, debt, United Auto Workers, ever-increasing house prices

Calls for financial education receive support

Calls from the British Bankers’ Association (BBA) for improved financial education in the UK’s schools are receiving widespread support.

The BBA claims that by educating youngsters in personal finances, they are more likely to be able to manage their money in later life.

This in turn will improve the nation’s financial capability and, hopefully, means that fewer Brits will find themselves in debt due to poor management of credit cards and other types of loans
in the future.

“We believe the best way to help people make sound decisions about what to do with their money depends on education. This should start young,” said Angela Knight, chief executive of the BBA.

“Until teachers can no longer choose between teaching financial literacy or not and whilst it remains un-assessed, it is hard to see how we can move from excellent pilot schemes to a complete roll-out across every UK school.”

The BBA’s stance on this issue has been well received by many industry figures who back the idea that personal finance should become a core part of the national curriculum.

“We are pleased that the BBA recognise the importance of personal finance becoming part of the core curriculum in schools and the fact that this should be examinable,” remarked Phil Hall, spokesman for financial education charity ifs School of Finance.

Even if you have already left school it is not too late to learn about money and how you can improve your financial situation.

Tags: literacy, british bankers association, pilot, turn, core, fact

Citizens Advice urges caution with consolidation loans

With record numbers of consumers struggling to pay off unsecured loans, a consolidation loan can sometimes be seen as a reasonable way out, but Citizens Advice
has warned debtors to consider all options before signing up to the agreement.

Speaking to The Observer, Peter Tutton, a social policy officer specialising in credit and debt for Citizens Advice, stated that an alarming number of people were signing up to consolidation loans when in fact, these agreements could make them worse off financially.

“There are problems with secured consolidation loans – we’re seeing lots of evidence that where people do get into [financial] trouble, they’re being pushed into consolidation,” said Mr Tutton.

Problems arise when consumers take out a secured consolidation loan for an unsecured debt and find that if they cannot meet the repayments, their home is now at risk.

James Ketchell, a spokesman for the Consumer Credit Counselling Service, added that in some circumstances, consolidation loans could be beneficial as the interest rate is often lower than with an unsecured loan.

Having said that, he stressed that in general, it was only a solution for five or six years, since consumers usually then built up more credit card debt and personal loans and put themselves into an even worse situation than before.

Consumers are advised to seek independent advice if they are concerned about their financial status and to consider all of their options before signing up to a fiscal agreement.

Tags: finance, debt, service, independent advice, Peter Tutton, risk

Bailiffs will be regulated

Those of us in debt will be protected from overzealous bailiffs by a strict new licensing regime.

That is the promise of constitutional affairs minister Vera Baird who says that bailiffs will not be given the power to forcibly enter a domestic property until the new licensing system is in place.

It comes as new laws are set to be introduced which will give bailiffs to right to force their way into a property to collect debts due for credit cards, loans and other bills.

The proposed laws have caused controversy as it is claimed that bailiffs are not properly policed and consumers need to be protected from rogue elements.

“Concerns have rightly been expressed about the right of bailiffs to force entry to people’s homes,” commented Ms Baird.

“We have always said forced entry can only be used as a last resort and when all other avenues have been exhausted.

“Today, I’m happy to announce this power will not come into force until those bailiffs who are not Crown employees are licensed by an independent regulator. This will help to further protect the public,” she added.

Ms Baird’s announcement has been welcomed by Citizens Advice, although the organisation has warned that regulation of bailiffs must be “robust”.

If you are in debt do not ignore the problem and hope that it will go away. If you contact your lender or debt collection agency to arrange a repayment plan you can begin to pay off the debt and avoid having bailiffs visit your home.

Tags: Credit Cards, way, proposed laws, independent regulator, problem, debt, avenues, repayment

Borrowers paying too much interest

Britons are paying £9.3 billion too much interest through unsecured borrowing, leading to a worsening debt crisis.

That is according to Zopa, a marketplace for people to lend and borrow money from each other, which says that the majority of borrowers are being overcharged.

Zopa reveals that the end of 2006 saw every adult in the UK in debt to the tune of an average £4,611, with the money spread across credit cards, store cards, personal loans and overdrafts.

This is said to include £201, that the firm says is the average amount of interest which borrowers are being overcharged per year.

“The scale of personal debt in the UK is quite astonishing and the extent to which people are being ripped off by their banks, credit card and personal loan companies is simply outrageous,” said James Alexander, chief executive officer of Zopa.

“People in this country desperately need to start shopping around for a better deal. One of the best ways for people to take that important first step to getting their debt under control and managed properly is by taking advantage of the best interest rates available.”

Zopa claims to offer borrowers better deals by cutting out the banks in the whole lending process.

Those of you considering taking out a loan may find that borrowing in this way is attractive, however, the most important thing to do is to shop around for the best deal that suits your needs.

Tags: debt, GBP, loan companies, Unsecured debt, adult

Bonuses won’t be blown this year

Many of the UK’s top earners are preparing to receive their bonuses this week and they already know what they will spend them on.

That is according to Barclays Wealth, which carried out research and found that 65 per cent have already planned what they will spend them on, while only five per cent will seek professional advice.

Although big bonuses are traditionally blown on champagne and expensive parties, Barclay’s research shows that many intend to invest them this year.

A total of 43 per cent of those questioned said that they will choose long-term financial investments over partying, with personal debt and mortgages the main focus.

The number one priority appears to be investing in a UK property, with 23 per cent saying this is what they intend to do.

This is closely followed by any other financial investment (19 per cent), clearing debts (15 per cent), holidays (12 per cent) and home improvements (ten per cent).

“It is encouraging that our research shows that people are intending to be responsible with spending their bonus this year,” said Jonathan Williams from Barclays Wealth.

The majority of workers are expecting to receive a bonus of between £5,000 and £25,000, with ten per cent anticipating an even greater sum.

Tags: financial investment, debt, bonus, long-term financial investments, majority, barclay, expensive parties

Finance management skills being taught to your students

With many adults and households now struggling to keep up with debt repayments, a high number of people struggling to manage their finances effectively, and a record number of bankruptcy and IVA applications being filed, schools in the UK are trying to address the issue of consumers debt at its roots by educating youngsters in how to manage finances. At present, children aged just eleven and upwards are being taught about effective financing, which should give them valuable skills and knowledge for the future and could help them to avoid the levels of debt that many of today’s adults are having to deal with.

One school in Pickering, Yorkshire is already enjoying the benefits of this addition to the curriculum, and students seem to find it very useful. The school is working with the Personal Finance Education Group, which aims to bring a better grasp of personal finance into the national curriculum, aided by fifteen million pounds in funding from the Financial Services Authority.

The Regional Director of the Personal Finance Education Group stated: “It’s helping them understand what financial information they need and then how to apply it. If you look what the financial situation looks like for the under-40s it is very different to the way it was some twenty or thirty years ago. A young person aged 18 can clock up credit cards at an alarming rate without much reference to their financial situation and
the important thing is to let people know how to manage their financial situation.”

The children at the school have had some very positive things to say about the new aspect of education that they are receiving, and many are already aware of how this type of additional education could help them in the future.

Tags: educate, teach, Loans, teachers, students, debt, iva, finance

Interest Rate Rise Could Mean Nearly £300M More To Pay For Homeowners

A recent study carried out in relation to the recent interest rate rise enforced by the Bank of England has shown that mortgage payers in the UK could be paying nearly three hundred million pounds more collectively in monthly repayments on their mortgages. The interest rate hike was recently announced, after Bank of England officials increased it from 4.75% to 5%.

The figures with regards to the monthly rise in total mortgage repayments came from an analysis carried out by Egg. Officials from Egg have advised consumers to start shopping around for a better deal on their mortgages in order to try and save money on the amount that they will otherwise have to pay out as a result of the interest rate increase. Those on a variable rate mortgage could find that the 0.25% rise in the base rate could make a significant difference to their monthly outgoing based on the value of their mortgage.

According to the report from Egg, those with variable rate mortgages in the UK will each pay an average of around £35.92 more each month as a result of the interest rate increase. With over eight million mortgage payers currently on a variable rate, this could mean a rise of around £292 million per month on total mortgage repayments.

Officials state that by doing a little research and shopping around for a more competitive mortgage deal consumers could cut back on the financial impact that the interest rate rise has on their monthly outgoings. There are a number of deals available on the market at the moment, and some consumers may prefer to opt for a fixed rate mortgage to avoid further financial implications in the event that the interest rate rises again early next years, as predicted by some financial experts.

Tags: pay, bank, house, Mortgages, rise, england

Extended Mortgage Terms Means Huge Amounts of Interest For Consumers

The rising property prices in the UK over the years have resulted in many people losing out on the chance to get their foot on the property ladder.

And because of this, over recent years, many banks and building societies have started to offer longer mortgage repayment terms over and above the traditional twenty-five year mortgage, as well as offering higher salary multiples, in a bid to attract consumers that are desperate to get onto the property ladder. Over recent years many lenders have been offering thirty and thirty-five year mortgage repayment terms.

However, experts are now concerned because some lenders have started offering even longer repayment terms, with up to fifty-seven years now being offered as a mortgage repayment term option with some mortgage providers. These mortgages have been labelled as ‘madness’ by experts, who state that although the monthly repayments will be lower for consumers because of the extended term, rising interest rates and the amount of time for which the borrower will be in debt could prove a real problem.

One director of a mortgage broker stated: “Life-long mortgages are a false economy. You end up paying literally tens of thousands of pounds in extra interest. It really is not a sensible thing to do. The idea of paying off a mortgage for 40, 50 or even 57 years is madness.”

With average house prices in the UK rising to well over two hundred thousand pounds, and with interest rates rising to five percent, a number of lenders have made changes to the mortgages that they offer in terms of the length of the mortgages available and the amount that can be borrowed. This is to attract more custom from those that would otherwise be unable to purchase a property.

Tags: Loans, length, years, increase, Mortgages, owe, terms

Bad Credit Loans

Getting it bad…

A lot of things have change over the years: none more so than the English language. Today’s teenagers are prone to use all sorts of words that have been invented either as a result of texting or simply to as a result of them wanting to adopt a form of language as their own. Read more

Tags: Englishman, case, new loan, debt, Loans, bad credit history, bad credit loans, personal loans