Consumers could benefit from consolidating debt in 2011

According to industry experts many people that are hoping to streamline their budgets over the coming year may be able to benefit from consolidating their debts with the use of a low rate consolidation loan. With New Year coming up there are many people whose resolution will be to sort out their finances after a very challenging year financially, and consolidation is something that may be able to help with this.

Consumers who want to reduce the amount that they are paying out each month, cut the interest that they pay overall on their combined debts, and reduce the number of repayments that they have to make very month may find that a consolidation loan is the ideal solution, as this can eliminate all three of these problems.

Those that are considering consolidation can look at wrapping all of their unsecured loans, credit cards, store cards, and other unsecured debts into one loan, which means that they benefit from increased convenience, less work due to having to deal with fewer creditors, and hopefully lower repayments by finding a low cost consolidation loan.

Those that want to consolidate their loans are advised to shop around for the right loan, as there are a number of providers and lenders that offer these loans, but things like the interest rate charged and the eligibility criteria can vary from one provider to another.

One industry official said: “The start of the New Year is often a great time for people to make a fresh start with things like their finances, and finding a low cost consolidation loan to wrap up existing finance and streamline the budget could benefit many consumers as long as they find the right deal.”

Tags: consolidation loan, creditors, right loan, rate, Budgets, rate consolidation loan, Unsecured loan

What to look for with a personal loan

Whilst credit conditions have undoubtedly been strained over the past couple of years many believe that things are now easing up in the financial markets, and whilst lenders have not gone back to the days of easy credit the availability of loans and finance does appear to be easing up to some degree.

With this in mind many people may now start to think about taking out a personal loan for a variety of purchases, and with things easing up in the financial markets the choice of personal loans is greater than before, and there are some pretty good deals available for those that have a decent credit history and score.

There are many lenders that offer personal loans, and which cater for the needs of a wide range of people and needs. It is important for those that are looking for a personal loan to do some research and familiarise themselves with the different loans and deals available so that they can make a more informed choice when it comes to deciding which of these loans to opt for.

It is easiest to use the internet to browse and compare the different personal loans available, as this will allow you to quickly see which loans fit in with your needs and your budget without having to deal with any pushy sales people or feel embarrassed about going through your finances with someone on the phone or in person.

There are a number of key areas that you need to look at when browsing personal loans with a view to taking one of these loans out. The interest rate that you will be charged is a very important consideration, so this is something that you need to compare. However, do bear in mind that if a lender advertises a typical APR this does not mean that you will necessarily get that rate of interest but that most of the lenders customers get that rate.

The repayment periods on personal loans can vary from one provider and loan to another, so this is something else that you need to look at when you are deciding which loan you should go for. If you want to keep your repayments down then you need longer repayments periods, so make sure that you know what’s on offer.

Other things that you need to look at include the overall monthly repayments to ensure that you can afford the repayments, the eligibility requirements, the terms and conditions of the loan, and the borrowing limits, although this will vary based on your financial status.

Tags: Unsecured loan, consideration, overall monthly repayments, personal finance, loan, interest, credit, status

Getting a good deal on a personal loan

Over the past couple of years the availability of personal loans has become somewhat restricted, and the global financial crisis and recession have made it difficult for many people to get a good deal on personal finance. However, the market is now starting to ease, and this means that whilst personal loans are by no means being dished out like smarties, as they were in the days before the credit crisis, it is a little easier to come by a good deal on a personal loan than it may have been a year or so ago.

These days people use personal loans for all sorts of purposes, and if you get the right loan this can be a great way to fund a range of things that you may want. Whilst the use of personal loans for debt consolidation has fallen over recent years many people use these loans for things such as improving their homes, buying a new vehicle, paying for a wedding, or even funding a dream holiday.

Your ability to get a low cost personal loan will depend on a number of factors, including your credit history and rating. Those with good or excellent credit should be able to find a low rate personal loan without any problem, whilst those with a tarnished credit history may find it difficult to get a personal loan or may have to pay a higher rate of interest because of the increased risk they pose to the lender.

In order to get the best deal on a personal loan you need to make sure that you compare the deals on offer, as this will boost your chances of finding a loan that comes with affordable repayments. You can compare loans quickly and easily online, and using a comparison site could help to save you time as you can check out a range of personal loans and providers at a glance.

When you are comparing personal loans there are a number of things that you need to look at to check the suitability of the loans. You should check out the interest rate on the loans, as this will determine how much you repay on the loan. Also, compare the repayment periods available, as this will give you an idea of how much you need to repay each month. Always ready the terms and conditions of the loans to check on any penalties or extra charges.

Tags: loan, credit, personal finance, Unsecured loan, finance

January – the most popular month for taking out loans

January is the most popular month in the year for consumers to take out an unsecured personal loan, claims one financial expert.

Findings from Halifax reveal that, compared with other months, almost double the number of loans are taken out during the first few weeks of the year.

According to Halifax, the percentage of loans taken out for debt consolidation also increases during January.

Neil Chandler, head of Halifax Unsecured Personal Loans, said: “For many people, the start of the year is a time to get personal finances in order – transferring debt from more expensive products such as store cards or other loans.”

The research showed that men are more likely to apply for a debt consolidation loan than women regardless of the time of year.

Consumers aged between 20 and 29 years old are the most likely to take a loan for debt consolidation purposes closely followed by those aged 30-39 years old.

Meanwhile, Halifax is working with Experian in an attempt to re-unite customers with funds held in dormant banking and saving accounts.

At the start of the campaign, in March 2007, 110,000 accounts were identified as being dormant.

Tags: personal finances, January, expensive products, Unsecured loan, March, taken out, finance, consumers

Northern Rock revises Together Mortgage

In response to rate changes at rival BM Solutions, Northern Rock revamped its Together range of mortgages yesterday by cutting rates across the entire range.

In addition, it has increased the help with costs option to £1,000, added two new short-term fixed rate mortgages and cut variable mortgage rates.

The marketing director of Northern Rock, Anth Mooney, said: “Increasing help with costs to £1,000 on our Together range means that customers can now use help with costs to cover their product fee thereby helping them to offset fee costs.

“Alternatively, help with costs could be used to help offset other costs associated with moving home such as stamp duty, legal fees or home improvements.”

BM Solutions altered rates across its Mortgage Plus range on January 31st. The range had been released last year to rival Northern Rock’s popular Together Mortgage.

Both lenders’ products combine a secured mortgage and unsecured loan and are aimed at first-time buyers.

Tags: Unsecured loan, mortgage, Anth, Solutions altered rates, mooney, Together range, year, GBP