Should there be caps on charges for payday loans?

Payday loans have become increasingly popular over recent years. This is not because they provide great value for money on borrowing or anything along those lines. The reasons for their popularity is clear – they are easily accessible for those that work because no credit check is required, they enable struggling consumers to get the money that they need pretty much right away, and they offer short term loans to tide people over until they get paid, which suits many of those that simply cannot make their monthly wages stretch quite far enough anymore.

The rise in the cost of living, the increase in VAT, cuts in wages, and potential job losses have all taken their toll on consumer finances, and this has left many people unable to make their budget stretch far enough to even afford the basics. Many of these people are turning to finance such as credit cards and overdrafts. Others are turning to payday loans, which come with extortionate APRs but are often the only possible short term solution for those with poor credit.

There are now set to be discussions in the House of Commons with regards to whether increasingly stringent legislation should be brought in with regards to the charges made for credit by payday loan provider and home credit lenders. The House of Commons is set to vote on the backbencher motion later this week. The move comes as consumer prepare for another year of hardship and worry over jobs, benefits, debt, and other financial issues.

It was reported recently that one in every ten people were unable to make their wages stretch for the whole month, and their wages tended to run out on the 20^th of each month, leaving them with more than a week without money.

Tags: accessible, check, caps, great value, hardship, backbencher, week

Electrical goods websites accused of being misleading

It has been claimed in a recent report that a large number of websites that are selling electrical goods are actually misleading consumers. Read more

Tags: Europe-wide problem, electrical goods. online electrical goods, cost, electrical retailers, solution, EU Consumer Commissioner, investigation, way

Different types of bank account for UK consumers

Over recent years banking services in the UK have come a long way and consumers have enjoyed more choice than ever when it comes to finding a suitable bank account for their needs. In the past most banks offered one standard bank account for the average consumer, take it or leave it. However, with competition stiff between the growing number of high street and Internet banks, and consumer needs expanding on a continual basis, most banks now offer a choice of accounts to suit a wide range of needs and circumstances. Read more

Tags: current accounts, premier accounts, something, fee, Cashcard Account, solution, salaries, bank accounts

Bankruptcy is a solution to debt

Despite the “stigma” attached to it, declaring yourself bankrupt is a “financial solution” to debt, according to financial experts.

The Consumer Credit Counselling Service (CCCS) said that most debtors are expected to opt for bankruptcy as an option to clearing debt over Individual Voluntary Arrangements (IVAs).

As the number of insolvencies is expected to rise in 2008, James Ketchell, spokesperson for the CCCS, said: “Bankruptcy seems to have a very bad stigma attached to it, and people for that reason do not go through with it.”

“However we view it as a solution, another way of sorting out one’s financial situation.”

Chartered accountancy firm Grant Thornton recently predicted that 10,000 individuals a month likely to become insolvent in 2008.

Due to Christmas debt 28,000 individuals are facing insolvency in the first quarter of 2008 alone.

In addition a Guardian ICM poll held at the end of December 2007 found that 55 per cent of consumers remained confident about their personal finances.

Tags: insolvency, Chartered, business, solution, firm grant thornton, consumer credit counselling, financial situation."Chartered accountancy, financial solution

Compare Mortgages Online – UK Mortgage Comparison

There are many different types of mortgages available in the UK these days, and in order to find the right mortgage for your needs you need to compare mortgages to see which one best suits your needs, circumstances, and budget. Read more

Tags: solution, huge financial commitment, mortgage comparison, related mortgage articles, great deal, Mortgages, compare mortgages, number