More than 10,000 Britons are being declared insolvent every month, the highest level on record, new official figures have shown.

Although the recession maybe over, many households are still unable to live within their means.

And experts warned insolvency numbers will rise further once interest rates begin to head above their current low level of just 0.5 per cent.

The latest figures showed 134,142 people in England and Wales were declared insolvent last year, the highest level since records began in 1960 and a sharp increase on the previous record of 107,288 personal insolvencies in 2006.

The individual insolvencies consisted of 17,007 bankruptcies during the last three months of 2009, - which were up 24.9 per cent on the same period a year ago - and 13,219 of its less stringent form, Individual Voluntary Arrangements (IVAs) – which were up 26.3 per cent on the same period in 2008.

An IVA is an arrangement that is entered into with those owed money, while a bankruptcy involves a formal court order where assets are sold to pay off creditors.

An alternative to bankruptcy – a debt relief order – was introduced last April, but various restrictions limit those who can apply, such as not owning your own home and having debts of less than £15,000. There were 5,348 of these orders during the final quarter, up from 4,505 in the previous quarter.

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Labels: credit crunch, home loans, uk recession

# posted by Dr Search- Principal Consultant at the Search Clinic @ 2:58 PM 0 comments links to this post

Money may make the world go round but money is also the nation's biggest worry.

More than eight out of 10 people said they are experiencing some kind of worry, consumer analysts Mintel found.

And one in five admit to turning to drink when stressed, while more than one in 10 light up a cigarette, the survey of 2,000 people found.

The top five concerns were money (40 per cent), problems with friends and family members (25 per cent), health (24 per cent), stress at work (22 per cent) and job security (21 per cent).

And the top five ways of dealing with stress were socialising with friends and family (54 per cent), listening to music or reading a book (40 per cent), exercise (33 per cent), talking to people about how they feel (32 per cent) and spending one-on-one time with a partner (22 per cent).

'The fact that over half of us turns to our family and friends in times of trouble, compared to just 6 per cent who go to a professional, highlights the extent of the stigma attached to seeking professional help to deal with stress.

While one in four men turn to drink in times of worry, less than one in five women drown their sorrows in alcohol.

But women are more likely to turn to comfort foods than men.

And on the whole, it is the fairer sex that is likely to be more stressed out, with more than one in 10 saying they had five or more worries, compared to just one in 14 men.

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Labels: credit crunch, home loans, Loan calculator, loans, sub, uk recession

# posted by Dr Search- Principal Consultant at the Search Clinic @ 8:09 PM 0 comments links to this post

New borrowing on credit cards, loans and overdrafts has outstripped the amount being paid back by UK consumers for the first time since June last year.

Unsecured consumer credit rose £52m in December, driven by credit card borrowing, the Bank of England said.

The number of mortgages approved for house purchases dipped slightly compared with November, to 59,023.

This was still higher than the average of the past six months, when the housing and mortgage markets picked up.

The trend during the downturn has been for consumers to pay off debts, often instead of saving when interest rates are so low.

For five consecutive months, repayments outstripped new unsecured consumer credit. However, in December, the trend reversed, the Bank of England's figures show.

This was primarily the result of borrowing on credit cards, which rose by £195m. Demand for personal loans and overdrafts remained low, with repayments outstripping new borrowing by £143m.

Total net lending to individuals rose by £1.2bn in December, double the average of the previous six months. The vast majority of lending is in the form of mortgages.

The number of people remortgaging rose slightly - to 27,276. This was still a traditionally low level as people chose to benefit from low interest rates by staying on their mortgage provider's variable rate when their fixed-rate deal came to an end.

The Bank rate is widely expected to remain at record lows for some months.

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Labels: Bank of England, credit crunch, home loans, Loan calculator, loans

# posted by Dr Search- Principal Consultant at the Search Clinic @ 10:09 AM 0 comments links to this post

UK bank personal loan rates have climbed to a nine year high because of a rise in bad debts as borrowers fail to meet their loans repayments.

Experts said banks are increasing rates to recoup the losses stemming from defaults on loans.

Rising unemployment during the recession saw households struggling to meet the repayments on their debt.

The best rate currently available on a three year loan of £5,000 is almost 9 per cent – or nearly £160 – a month, according to personal finance website Moneyfacts.

It is in sharp contrast to rates of almost half that amount before the beginning of the credit crisis in 2007.

The rise comes despite the Bank of England keeping interest rates at a historic low of 0.5 per cent for the past year.

Rates were last at their current level nine years ago when the Bank Rate was a much higher 6 per cent, meaning banks have significantly increased their profit margins on personal loans.

The average rate today on a personal loan is even higher at 12.4 per cent.

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Labels: credit crunch, loans, sub prime loans, UK loans rates

# posted by Dr Search- Principal Consultant at the Search Clinic @ 10:03 AM 0 comments links to this post

While the UK’s output of goods and services grew in the final quarter of 2009, according to the latest official statistics, many people are wondering whether their own finances are actually in any better shape.

Recovery can bring its own problems; for a start, rising demand tends to stoke inflation, which could prompt the Bank of England to raise interest rates – good news for savers, but not something that hard-pressed home owners would welcome.

So what are the prospects for our personal finances as the economic recovery takes hold?

With Britain borrowing record amounts of money, many expect public spending cuts or tax rises – or both – as the Government attempts to balance the books. Income tax could have to rise by as much as 5p in the Pound.

Commentators are divided on the likelihood that interest rates will rise from their current unprecedented lows. Official rates were unlikely to rise this year because a tough post-election Budget would equate to a significant interest rate rise.

But you don’t need the Bank of England to put up official rates for mortgage costs to rise. Lenders are by and large able to change their standard variable rates at will, while Skipton Building Society recently abandoned a pledge to keep its SVR within three percentage points of Bank Rate.

Higher interest rates might seem like good news for savers, who would finally see better returns on their money. But if inflation rose faster than interest rates, pensioners’ and savers’ incomes would not keep up with increasing household bills. Rising rates also means higher mortgage rates, which will put further pressure on many households’ incomes.

While you would expect the end of a recession to be good news for the stock market, it’s worth bearing in mind that markets generally look ahead, so much of the good news will already be “in the price”. So instead of simply expecting the FTSE100 to soar, investors may have to be selective if they want to profit, experts say

An immediate improvement in employment prospects is unlikely, experts say. Jobs will remain hard to find, with employers likely to remain nervous about hiring when the economic recovery is still sluggish. In fact, we expect unemployment to start rising again and it could even reach 3m.

Even if employment holds up, that is only likely to be because firms are controlling costs by cutting or freezing pay instead. For many people, it will still feel very much like a recession.

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Labels: consolidate debt loans, credit crunch, home loans, sub prime loans, UK loans rates, uk recession

# posted by Dr Search- Principal Consultant at the Search Clinic @ 9:55 AM 0 comments links to this post

Lenders and borrowers have been issued with draft guidance about when their loans may, or may not be enforced by the OFT.

The Office of Fair Trading (OFT) said it was worried that some debtors were being misled about their ability to get their debts written off.

Thousands of claims have been launched in the past couple of years, against lenders, by borrowers trying to avoid repaying their debts.

The draft guidance focuses on the rules laid down by the Consumer Credit Act.

The OFT's guidance draws on recent rulings by Judge Waksman at the High Court in Manchester.

He confirmed that it was acceptable for lenders to produce reconstituted copies of original loan agreements, for the purposes of providing the borrower with information about their loan.

The OFT said: "Some debtors are being misled into thinking that these sections [of the Consumer Credit Act] can be used to get their debts written off and that some creditors are not following legal obligations to provide information to customers.

"The lender is allowed to provide a reconstituted agreement, as long as that version is accurate and contains all the original information apart from the few exceptions that the law allows (which include the signature, signature box and date of signature)."

The authorities have been worried that some claims management companies have been drumming up business by exaggerating the chance of clients getting their debts cancelled.

Claimants have typically sought to achieve this by challenging their lenders to meet the strict requirements of the Consumer Credit Act.

One of these is that lenders have to produce a "true copy" of the loan agreement within 12 days of being asked.

If a legible true copy cannot be produced then the loan is temporarily unenforceable, by way of a county court judgement, until such time as a copy can be found.

Some claims management companies have argued that the debts are permanently unenforceable in these circumstances.

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Labels: credit crunch, home loans, loans, sub prime loans

# posted by Dr Search- Principal Consultant at the Search Clinic @ 9:50 AM 0 comments links to this post

People in some of the poorest parts of the country are having benefits paid onto pre paid cards, but many are not aware of the costs involved.
An internal e-mail from the Department for Work and Pensions expresses concern at the lack of customer awareness.

One benefit office has received requests to pay benefits for almost 100 people directly onto these pre-paid cards, which incur charges.

The card providers say the cards promote financial inclusion.

However when staff at the Clyde and Fife Benefits Delivery Centre contacted customers before processing the requests, they found that the majority of customers were not aware of the charges.

One of the companies mentioned in the e-mail sent 46 applications to the benefit office requesting benefits to be paid on to a GO: Card.

The forms were accompanied by a letter from Go Money Solutions sales director, Steve Tobin. In the letter Mr Tobin says the forms were obtained "through face to face marketing" in the local area.

The DWP confirmed it had raised concerns with Go Money Solutions and it had subsequently revised its sales practices.

Minister Helen Goodman told Radio 4's Money Box: "Considering the charges that are associated with these cards, it is very unlikely that they are suitable for our customers.

"We certainly don't endorse them. There are much better options available for having your benefit/pension paid, such as the Post Office card account, a basic bank account or current account."

Online shopping

But Mr Tobin says the GO: Card offers much more in terms of financial inclusion, flexibility and convenience:

"We offer our customers the chance to take part in fully utilising the internet's many advantages in purchasing goods and services at considerably discounted prices and convenience. We do not charge for this facility."

While most banks offer basic banking facilities to all customers, many will not offer a debit card to people with a bad credit history. A pre-paid credit card is currently the only way those customers can shop online.

A GO: Card costs £10 to buy and a £7.50 annual management fee is charged after the first month. It costs a minimum of £1.25 and a maximum of £2.50 to have each benefit loaded on to the card and the same charges apply for each cash withdrawal.

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Labels: credit crunch, home loans, sub prime loans

# posted by Dr Search- Principal Consultant at the Search Clinic @ 9:39 AM 0 comments links to this post

UK debit card spending will overtake spending with cash as a method of payment this year.

Debit card transactions rose by 10 per cent last year, according to Visa Europe, which is owned by the banks for which it processes payments.

It means that 77 per cent of its business was now done with debit cards, rather than credit cards, the use of which stalled over the past year.

Total card spending at “points of sale” was up 3.7 per cent to £746 billion, Visa Europe said. The busiest day for spending was December 23, when consumers performed more than 20 million transactions and spent more than £1 billion – up 28 per cent on the same day in 2008.

The recession has meant that consumers are increasingly using debit cards to pay for purchases, rather than build up debt on credit cards, Visa said.

At the same time consumers have been reluctant to pay booking fees for payment with a credit card. Retailers are barred from making such charges on debit card transactions, but justify the credit card levies on the grounds that they are passing on so-called interchange fees charged by banks.

Internet shopping has also accelerated the rise of debit card use, with a quarter of all Visa spending in the UK conducted online over the Christmas period and 20 per cent for the year as a whole.

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Labels: consolidate debt loans, credit crunch

# posted by Dr Search- Principal Consultant at the Search Clinic @ 8:21 PM 0 comments links to this post

UK Consumers who buy goods and services with a debit card could be offered the same protection as those who use a credit card.

Some shoppers are losing out on hundreds of pounds each year because they have been caught out by unscrupulous internet retailers, companies going bust or just plain poor service.

Consumer Focus, the Government's consumer watchdog, said these shoppers could avoid being out of pocket if they used credit cards, but many shoppers do not like buying goods on credit. And the only way to pay for goods bought over the internet, if you do not like using credit cards, is with a debit card.

The Government has now hinted that it might tighten the rules to give greater protection to those shoppers that use debit cards, as part of a shake-up of the card industry.

The Government is reviewing the industry and Tuesday 19 January was the deadline for parties to submit their ideas of how to improve credit cards. Any changes accepted by the Government are likely to be announced next month.

A spokesman for the Department for Business, Innovation and Skills said: "We are aware consumers have concerns about their rights when using different types of cards. That is why we are looking at this issue very carefully and will be announcing our views in the New Year."

Any change would be a major victory for consumers.

According to Consumer Focus, over the last year, one in ten consumers has been failed to get something they had paid for in advance – with less than half of the people not getting their money back. Those that have been ripped off have been out of pocket to the tune of £242, on average.

Under the 1976 Consumer Credit Act, the credit card company is jointly responsible – along with the retailer – for the quality of goods and services. This means anything between £100 to £30,000 will be covered by the credit card company if it arrives faulty or fails to arrive.

However, people buying goods on debit cards enjoy none of these rights and are left in a particularly weak position if an internet retailer goes bust.

Banks argue that it would be very expensive to offer consumers the same rights with debit cards. Credit card providers can only afford to cover the value of faulty goods up to £30,000 because they charge customers a large annual percentage rate. Debit cards are free in the great majority of cases.

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Labels: credit crunch, Loan calculator, loans, sub prime loans

# posted by Dr Search- Principal Consultant at the Search Clinic @ 8:03 PM 0 comments links to this post

UK credit card lenders are attempting to dilute plans to curb lenders' activities.

Government proposals include stopping card firms changing interest rates on existing debts and ensuring the most expensive debts are paid off first.

But now a trade body, the UK Cards Association, has claimed that the changes would push more people into financial difficulty.

There are 30 million UK credit card customers holding 66 million cards.

The industry said that 62% of all UK adults had at least one credit card, but borrowing on these cards had been in "gentle decline" since 2005.

Despite greater caution from lenders about who gets a card, the government is keen to outlaw certain practices that it regarded as unfair and has challenged the industry to "clean up its act".

It invited responses to proposals, published in October, which included:
* changing the order of priority for credit card repayments, so that the most expensive debts, such as cash advances, are paid off first
* increasing the minimum amount that must be paid off each month to accelerate the overall rate of repayment
* banning the practice of raising borrowers' credit limits without their consent
* restricting or banning increases in interest rates on debts already incurred.

The plans follow other limits on credit card practices brought in during 2009, aimed at bringing more transparency for customers.

But the latest proposals have brought a strident response from the industry, which claimed in a 230-page report that customers would not benefit from some of the planned changes.

"These options would reduce competition within the industry," said Melanie Johnson, a former Labour MP who chairs the UK Cards Association.

"They would also have far reaching consequences for customers and lenders alike and would change the basic 'deal' offered by lenders to their customers and lead to increased financial difficulties for many and to more defaults."

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Labels: consolidate debt loans, credit crunch, Loan calculator, UK loans rates

# posted by Dr Search- Principal Consultant at the Search Clinic @ 8:28 PM 0 comments links to this post

Paying off any credit card debts should be your top financial priority for 2010.

If you've got a lot of debt sitting on your credit card following Christmas, and it's racking up a lot of interest, the first step you should take is to transfer that debt onto a 0% balance transfer credit card.

The top card to use at the moment is the Virgin Credit Card, which offers an interest free period on all balance transfers for 16 months. So this means you've got 16 months to start making progress tackling your debt without worrying about paying interest.

It's a good idea to set up a monthly standing order for your minimum monthly repayment to make sure you don't forget to make a payment each month. If you do, you could be charged a fee, lose your 0% deal, and possible get a black mark on your credit record.
Get budgeting

If you're struggling to pay off your debt, the most obvious way to tackle it is to throw as much money towards it as possible.

But if you're feeling a little strapped for cash, this might seem slightly daunting. So a good idea is to sit down and draw up a budget. To do this, work out exactly what your monthly outgoings and earnings are by using a statement of affairs calculator.

If you can't manage to get all of your credit card debts onto interest-free deals, you need to adopt the method of 'snowballing'.

To do this, simply work out which of your credit card debts is charging the most interest - this is the debt that will grow at the fastest rate, so it's the one you need to concentrate on.

Keep paying the minimum monthly payments on all of your borrowings, but put any spare cash towards your most expensive debt. Once you've paid off this debt, put the extra money towards the next most expensive debt, and so on. Leave your interest-free debt until last.

As I mentioned earlier, it's important to remember to pay the minimum monthly repayment (MMR) on your credit card each month. However, minimum monthly repayments are usually set at a ridiculously low level - often as low as 2% of your total card debt.

This means it will take you a long time to pay off your balance - typically more than 15 years on £1,000 of debt. This also means your debt becomes much more expensive, as you'll be paying a lot of interest over that period.

So it's a good idea to set up a direct debit and pay a fixed amount on top of the minimum monthly repayment each month. That way you will pay off the debt far quicker and you won't have to pay as much in interest. You can find more about minimum monthly repayments in The dangers of minimum payments.

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Labels: consolidate debt loans, credit crunch, home loans, Loan calculator, uk recession

# posted by Dr Search- Principal Consultant at the Search Clinic @ 7:52 PM 0 comments links to this post

Some of the UK's poorest people are starting 2010 in severe debt after borrowing from loans sharks to pay for Christmas.

The Financial Inclusion Centre said 100,000 families had borrowed a total of £29m from illegal money lenders.

The think tank said on average it would take a year to pay the money back as lenders recouped three times the value, with some interest rates up to 1,500%.

The average amount borrowed was £288, but the average repayment was £820.

Mick McAteer, director of the Financial Inclusion Centre, said: "Because of the financial crisis, the High Street banks are restricting the access to loans to those people they consider to be low risk or [have a] higher income.

"That tends to push more and more people out into the hands of loan sharks."

The research was commissioned by housing association Circle Anglia, after it noticed loan sharks increasingly targeting its residents.

The government's consumer minister, Kevin Brennan, said: "It is worrying that people are borrowing these sums of money from loan sharks, because they're illegal.

"In the law they don't have to pay it back, and my advice would be don't go to a loan shark if you need to borrow. Approach a credit union or one of our debt advice teams."

Chris Tapp, of charity Credit Action, urged people to contact the police if they fell victim to loan sharks, because the lending was illegal.

He said: "It often feels like the only option is to go for the person they know of locally, to go to the loan shark, but that's not actually the case.

"In a lot of communities now around Britain there are credit unions or local finance organisations that operate from the 'third sector'.

"They're not-for-profit organisations that can lend money at considerably lower rates.

"It's not actually as cheap as you'd get from a bank, but it's much cheaper than borrowing from an illegal lender."

Also, the government's social fund helps people on low incomes and on benefits when they need crisis loans immediately, he said.

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Labels: consolidate debt loans, credit crunch, home loans, refinancing rates, sub prime loans

# posted by Dr Search- Principal Consultant at the Search Clinic @ 2:02 PM 0 comments links to this post

Inaccurate information on credit files is preventing consumers from gaining access to loans and credit, the Information Commissioner's Office (ICO) has said.

The ICO is urging people in the UK to check their file so the information accessed by lenders is accurate.

Banks, shops and catalogue companies all use these files to decide whether to offer credit to customers.

Information should be corrected by the organisation that provided it to the credit reference agency.

"Many of us will be relying on credit to get us through 2010," said David Smith, deputy commissioner at the ICO.

"Out of date or wrong information in your credit file might not only stop you getting the credit you need but could have further damaging or embarrassing consequences.

"By checking your credit file regularly you can spot anything that is wrong and act swiftly to correct it."

Individuals have the right, under the Data Protection Act, to look at their credit file. The ICO has produced a new guide that runs through how to access these files.

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Labels: Aussie loans rates, credit crunch, home loans, Loan calculator, sub prime loans, UK loans rates

# posted by Dr Search- Principal Consultant at the Search Clinic @ 3:22 PM 0 comments links to this post

The average loans interest rate charged during the month was the highest average interest rate since September 2006.

The cost of credit card borrowing continued to increase during December, with lenders hiking their rates from an average of 15.89pc in November to 16.28pc.

The interest charged during the month was the highest average rate since September 2006, and considerably higher than the 15.58pc seen in December 2008.

Rates for people borrowing £10,000 through personal loans remained at 11.08pc, up from 9.3pc a year earlier and the highest level since August 2002.

Interest charged on a £5,000 loan also rose by more than 1pc during the year, climbing from 12.08pc to 13.38pc, while average overdraft rates rose from 18.04pc to 18.96pc.

The figures contained little cheer for savers, with the average rate paid on a branch-based instant access account remaining close to its recent record low at 0.17pc, while interest on notice accounts dropped by 0.03pc to 0.31pc.

Returns paid on fixed-rate bonds, currently the most competitive area of the savings market, fell for the fourth month in a row, dropping to 2.51pc, down from a recent peak of 3.05pc in August last year.

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Labels: credit crunch, recession, sub prime loans

# posted by Dr Search- Principal Consultant at the Search Clinic @ 8:37 PM 0 comments links to this post

Britons are taking twice as long to repay their Christmas debts having spent an average of £435 on presents than a decade ago.

Credit card holders are taking an average of 90 days to pay off the debt they built up over Christmas, more than a month longer than a decade ago, according to the findings by the over 50s group Saga.

Paul Green, a spokesman for Saga Group, said: “It is a shocking indictment of the nation’s economy that so many people are left struggling to cope with so much debt.”

Credit card holders took 33 days less to pay off their debts, or just 57 days in 1999, it said.

Younger people are less debt savvy with one in five under 50s saying they were still paying off debts incurred from Christmas 2008. But those over 50 are much wiser users of credit with a third of card holders planning to clear their balance immediately.

The reliance on credit cards to cover the costs of Christmas comes after savers saw their rates of return plummet last year. It means almost all higher rate taxpayers now miss out on a return on their savings once tax and inflation is taken into account.

Just 13 per cent of people dipped into their savings to help fund Christmas last year, compared to 31 per cent 10 years ago, Saga said.

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Labels: Aussie loans rates, consolidate debt loans, credit crunch, recession, UK loans rates

# posted by Dr Search- Principal Consultant at the Search Clinic @ 2:07 PM 0 comments links to this post

Sub prime lender Paragon announced last week that the buy-to-let lender was getting closer to starting new lending.

Rumour has it that management at the group met with bankers and lawyers last week to discuss the resumption of lending.

The company said last November that any improvements in funding markets would encourage it to look more confidently at reinstating its funding programme to support new lending.

Paragon was forced to stop new lending in early 2008 because of higher funding costs amid the financial crisis. The group trades at a big discount to its net asset value, but usually trades at a premium when lending.

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Labels: consolidate debt loans, credit crunch, home loans, Loan calculator, sub prime loans

# posted by Dr Search- Principal Consultant at the Search Clinic @ 1:14 PM 0 comments links to this post

UK interest rates have been left at 0.5% following the Bank of England's latest meeting.

The cost of borrowing has been at a record low since March 2009 and economists do not expect the central bank to raise rates in the near term.

The Bank's Monetary Policy Committee (MPC) also maintained the quantitative easing (QE), or asset buying, programme at £200bn.

The UK is thought to have exited recession in the last quarter of 2009.

The MPC said it expected its QE programme to take another month to complete and that the scale of the programme would be kept under review.

Manufacturers said they supported the Bank's decision. The recovery is now underway, but its strength remains in doubt.

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Labels: Aussie loans rates, Bank of England, credit crunch, home loans-rates-UK, interest rates, Loan calculator, MPC, Quantitative Easing, uk recession

# posted by Dr Search- Principal Consultant at the Search Clinic @ 6:20 PM 0 comments links to this post

Credit cards are the number one source of outrageously high interest debt in this country and also the number one candidate for debt consolidation.

Before the credit crunch, it was all too easy for most of us to obtain as many credit cards as we could pack into our wallets.

Constantly bombarded with teaser rates and unsolicited junk mail offering huge lines of credit, perhaps you have more than enoughcredit cards and less than enough money to meet the financial obligation of paying these cards each month.

If you are like most Britons, you can barely keep up with the minimum monthly payments on your many credit cards. By choosing debt consolidation for your credit card debt and other debts, you can save yourself an untold amount of interest charges and finally pay off your credit cards for good.

In Britain, we have become a society that loves to use credit for everything, and many of us have been living outside of our means for awhile now. Credit card companies use predatory tactics to lure consumers into thinking they are getting a great deal on their next new credit card by offering teaser rates that usually start out at zero percent or one percent, and then quickly balloon up to fifteen percent or higher once the introductory period of several months have passed.

If you are late with one payment, even by a few days, tiny print in the terms and conditions of many cards will tell you that your new interest rate will be the default rate, which is typically 19.99%.

This amounts to outrageous interest charges and in many cases, the minimum monthly payment that most consumers make on their credit cards does not include any of the principle balance owed, but is just interest.

How can the consumer get out of debt by paying only the interest on their credit cards each month? Simply put, it is not possible. Debt consolidation, however, can allow you to pay off your credit cards in full and put a halt to this ridiculous interest that is keeping you weighted down with burdensome debt.

With debt consolidation, you can pay off all of your existing debts at once, including your credit cards. You can also include personal loans, department store charge cards, gasoline cards, automobile loans, and private student loans.

By rolling all of your existing debt into one big debt, you save a ton of interest charges because your newdebt consolidation will be written, typically, at a much lower rate. The amount that you will be required to pay each month with debt consolidation is generally much less than the total amount that you were paying your previous lenders combined. Most terms of debt consolidation run five years or less, which means that you can pay off everything you owe fast.

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Labels: consolidate debt loans, credit crunch, Loan calculator, loans, loans rates, sub prime loans, UK loans rates

# posted by Dr Search- Principal Consultant at the Search Clinic @ 6:04 PM 0 comments links to this post

Even a £100 loan can turn into a monster debt if you don't pay it back on time.

Short term loan firms will be expecting a bumper month as the post Christmas debt blues take their toll.

Instant cash following a couple of quick text messages can help tide you over until payday, but the costs can quickly mount up.

However, relying on this type of service on a regular basis can be a very dangerous way of borrowing.

Repaying £110 on a £100 loan may sound harmless enough but it may actually equate to an interest rate of 994 per cent APR.

You are may also be charged a £1 handling fee for each text sent as well as a one-off £1 fee for the initial registration. More importantly, if you fail to pay back the loan within seven days, the costs can spiral in a matter of days.

If your credit rating is OK, it's far cheaper to borrow on an agreed overdraft from your bank, although not on an unauthorised overdraft. The Alliance & Leicester Premier Account offers a 12-month overdraft at 0 per cent interest as long as you pay in £500 per month, although watch out if you breach the authorised overdraft limits and face penalty fees of £5 per day, up to a maximum of £100.

Some bank accounts also have a buffer zone, allowing you to go overdrawn by a small amount without paying any interest; NatWest, for example, has a £15 buffer, whilst HSBC's buffer is £10.

Alternatively, look for a low-rate credit card such as the Barclaycard Simplicity Visa, which charges just 6.8 per cent, or take advantage of cards with introductory bonuses. The best buy for new spending is the Tesco Clubcard Credit Card, which gives 12 months interest free, followed by 16.9 per cent APR. Otherwise, there are credit cards aimed specifically at those with tarnished credit records.

For anyone struggling because they haven't yet built up a credit rating, the Barclaycard Initial charges 27.9 per cent APR. The Capital One Classic card charges 34.9 per cent and is open to people with County Court Judgments, and for sub-prime borrowers, the Aqua Mastercard charges from up to 39.9 per cent, and the Vanquis Bank Visa charges up to 59.9 per cent.

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Labels: credit crunch, Loan calculator, loans, sub prime loans

# posted by Dr Search- Principal Consultant at the Search Clinic @ 5:53 PM 0 comments links to this post

The cost of borrowing for the British citizens has surged to within a whisker of Italian levels as global debt markets issue their damning verdict on the labour Government’s spending plans.

The yield on 10 year gilts rocketed yesterday to 3.97pc, 46 basis points higher than costs on French bonds.

Britain and France were neck and neck as recently as last month, before Labour’s pre-Budget report raised deep concerns among Chinese, Arab, and Russian investors about the credibility of British state.

But what has caught market attention is the narrowing gap with Italian bonds, once mocked as the symbol of an ill-governed nation in thrall to the Dolce Vita.

Yields on 10-Italian treasuries have been hovering just above 4pc despite the eurozone’s Greek crisis, dropping as low as 3.98pc earlier this week.

Britain is vulnerable to a “gilts strike” because foreign investors own £217bn of UK debt, or 28pc of the total. These are footloose funds and likely to sell large holdings if Britain loses its AAA rating.

They have other tempting places to park their money, such as Turkey, Brazil, or India, where demography is healthy and growth prospects are better. Chile has already undercut British debt yields on some maturities.

Italy has its own problems, of course. Public debt was much higher before the crisis began. The IMF expects it to reach 120pc of GDP next year. However, this debt is mostly owned by high-saving Italians, who are less fickle than foreign funds.

For Italy, this may just be the calm before the storm. Markets assume that Germany will ultimately bail out Greece if necessary, preventing contagion to the rest of the Club Med bloc.

This is a questionable judgement. Volker Wissing, head of the finance committee of the German Bundestag, said it must be made explicit that “Germany will not take responsibility for Greek debts”.

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Labels: consolidate debt loans, credit crunch, interest rates, labour liars, refinancing rates, sub prime loans, UK loans rates

# posted by Dr Search- Principal Consultant at the Search Clinic @ 11:51 AM 0 comments links to this post

New loans figures from high Street banks showed consumers are concentrating on paying off debts in the recession.

Figures from the British Bankers' Association (BBA) showed that total consumer credit has contracted by 2.2% over the last year.

But the number of mortgage approvals for house purchases has reached the same level as two years ago.There were 44,713 mortgages approved, up 2,161 on the previous month.

"Household priorities are showing up in the November figures," said David Dooks, statistics director for the BBA.

"Demand for new personal loans was weak and people are paying off debt or building savings in response to economic circumstances."

The BBA said that demand for personal loans was particularly weak and balances had fallen by £3.6bn over the year to date.

In November, people paid back £300m more in total than they took out in new credit.

This follows figures from the Office for National Statistics on Tuesday which showed that the household savings ratio - the percentage of disposable income that is saved - rose to its highest level since 1998.

In the third quarter of the year, the proportion rose to 8.7% of income, as against 7.6% in the previous three months.

The BBA figures showed that the increase in the amount of personal deposits and savings put in High Street bank accounts slowed in November compared with the previous month, but they were 3.9% up on the same month a year earlier.

So far this year, deposits have increased by more than £18bn, compared with £21bn in the same period of 2008.

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Labels: consolidate debt loans, credit crunch, home loans, Loan calculator

# posted by Dr Search- Principal Consultant at the Search Clinic @ 6:21 PM 0 comments links to this post

There are a growing number of "apps" that are designed to help you manage your money better.

For those still getting to grips with the world of "apps" these are simply applications that can be downloaded to an iPhone or iPod Touch, two of the most search for products this Christmas.

The iTunes store now has more than 90,000 of these applications, which offer games, city guides, travel planners, language dictionaries and music services. Some of these apps are free, and most cost less than £4.99.

And if you do not own an iPhone, Nokia, Orange, Samsung and BlackBerry have all launched their own application stores – although the choice of products is more limited.

Red Laser- this costs £1.19 and will scan any bar code for you then search for cheaper online prices using the Google product search.

This is particularly useful when buying larger items such as televisions and fridges, saving you money and the hassle of shopping around for better deals. It will also scan a book then check for reviews or scan groceries and add it to its shopping list, so next time you visit the supermarket, you have a list ready.

Lower phone bills- if you are fed up paying 35p per minute calling premium rate phone number, then download the free "0870" app.

This converts 0870, 0845 and 0800 telephone numbers into normal rate landline number, eg those starting with 020, 0151, 0115 etc. These will either be including within your monthly call allowance or are substantially cheaper to call for those on pay as you go packages.

Mobile phone owners may also want to download Mobile Allowance, for 59p, this app gives you a comprehensive reading of your mobile allowance, showing phone owners how many free minutes and texts they have left.

This is ideal for those who are prone to talking or texting too much, and going over their limit. Both talk time and texts are shows as a progress bar on your phone helping you keep track of your monthly usage.

Cut petrol costs- For £4.99, PetrolPrice Pro automatically records your position and give you the cheapest fuel options within a 5, 10 15 or 20 mile radius.

Reduce utility bills- Meter Readings is the most popular paid-for financial application, as it helps users keep track of their energy and water usage. Once you've entered your meter readings, the app will show your usage in a graph, showing what you use and what it costs.

For 59p, this app can configure up to three separate tariffs per meter, useful for electricity where different rates are charged during the day and at night. It's hoped that this will encourage people to reduce the amount of energy they use, switch their habits (eg use the washing machine overnight) and so cut bills.

There's often a large discrepancy between estimated readings and actual readings, so this app also makes sure you are not overcharged.

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Labels: consolidate debt loans, credit crunch, home loans, sub prime loans

# posted by Dr Search- Principal Consultant at the Search Clinic @ 6:05 PM 0 comments links to this post

As the UK's personal and business markets improve Sainsbury's appears to be focusing on the UK personal loans market.

Customers who hold Sainsbury's nectar loyalty cards are being offered cheap personal loans from between £5000 and £15,000 if they apply online. The more conventional rate is 8.1% but all holders of nectar cards are able to secure a rate of 7.9%.

This is the cheapest rate that is available without having to be an existing customer of a lender. Fascinatingly, there is no cut-off point at which you need to be a nectar card holder therefore many people have been applying for the card and then applying for a loan.

This is visibly a very clever ploy by Sainsbury's to increase interest in its loyalty card and at the same time secure personal finance transactions well in excess of UK base rates. This will probably be a sign of things to come with the likes of Tesco very active in the finance market as well.

In their own right, offers such as that available through Sainsbury's would mean very little in a review of the UK economy but when pieced together with significant improvements in mortgage rates and improved liquidity in the market place, slowly but surely there are signs of hope for the UK.

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Labels: credit crunch, home loans, UK loans rates, uk recession

# posted by Dr Search- Principal Consultant at the Search Clinic @ 5:39 PM 0 comments links to this post

A group which reports directly to the Cabinet Office and the Government's chief scientific officer meets to discuss various proposals including setting up better co-ordinated "debt care pathways" between health professionals and debt advisers.

The so-called "Foresight Project on Mental Capital and Wellbeing" will also look at the idea of a "voluntary register for bipolar people to prevent them from overspending".

Other initiatives are also taking place, coming from government, psychiatrists, the debt advice world and even from lenders. They are responding to the fact that mental health seems to be a more widespread factor in debt than was previously thought. The "one in four" statistic – one in four people with debt problems also suffers from depression or another condition – is well-established.

But the real figure could be much higher. As many as "half of all adults in debt may have a mental health problem", according to the Royal College of Psychiatrists, which published new evidence in October, along with charities Rethink and the Money Advice Trust.

The problem is that debt can also induce depression as a natural reaction. "It's chicken and egg," says Frances Walker of the Consumer Credit Counselling Service. "Which comes first – debt or depression?" And Fred (not his real name), a debtor-turned-debt adviser, says: "Debt, depression and divorce, the three Ds, go hand in hand."

Until four years ago, there was very little assistance for the depressed or other mental health sufferers in this field. The notion that they might have special problems was something that was rarely discussed. Since then the work of some 20 or 30 committed people has pushed the issue up the agenda. So, only a week ago, a new form was launched which enables health and social care professionals to assist those who are unable to control their financial matters.

The "Debt and Mental Health Evidence Form" collects together details of social care and health advisers and some evidence of the problem, and can be used to inform lenders that they need to take special care in this person's case. "This will be incredibly important," says Maggie Kirkpatrick, adviser at the CCCS centre in Eastbourne.

Help is at hand: Free debt advice

While those with enough money might prefer to employ the services of lawyers, accountants and other professionals to help them get out of financial difficulty, many people of limited means often require free debt advice. The organisations below can such help.

* Consumer Credit Counselling Service: www.cccs.co.uk and 0800 138 1111

* Citizens Advice: www.citizens advice.org.uk and via local advice centres

* National Debtline: www.nationaldebtline.co.uk 0808 808 4000

Debt woes: 'I felt suicidal. You lose all sense of proportion'

What to do if you are suffering depression or some other kind of mental illness:

1. Try to tackle your debts before they mount up. By confiding in someone else now rather than in a year you can save yourself money and years of worry.

"The idea that I was going to commit suicide over a debt of £5,600 seems incomprehensible now," says Fred (not his real name), a debtor-turned-debt adviser. "But you lose all sense of proportion."

2. Go to your doctor about the anxiety or mental illness aspect. People often attribute sleeplessness and agitation to worry, says Maggie Kirkpatrick of the Consumer Credit Counselling Service (CCCS).

3. Speak to someone else about your finances – a friend but, preferably, a debt adviser. They are used to dealing with these issues and will not be shocked. CCCS takes about 300,000 phone calls a year on debt problems. They can contact your debtors for you, listen to your story and help you get back on course.

4. Avoid doing nothing. You can find that bankruptcy proceedings are started against you if you simply do not reply to your creditors.

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Labels: consolidate debt loans, credit crunch, home loans, refinancing rates

# posted by Dr Search- Principal Consultant at the Search Clinic @ 1:59 PM 0 comments links to this post

The Bank of England has held UK loans interest rates at the record low of 0.5% in a widely expected move.

It also announced no changes to its programme of pumping newly-created money into the economy - so-called quantitative easing (QE).

In November, the Bank of England said it would inject another £25bn, taking the total planned under QE to £200bn.

The Bank cut interest rates to 0.5% in March in an attempt to boost the recession-hit economy.

Under QE, the Bank of England prints money to buy assets from banks and other companies to stimulate the economy.

The bank is expected to wait until the current QE programme runs out in January before considering whether it should be expanded.

Responding to the decision, some analysts believe interest rates could remain at the current level for the foreseeable future.

The Bank of England recently warned that the recovery would be "slow and protracted" and that it would take months for the full impact of its policies to be felt.

The British Chambers of Commerce have accused the Bank's Monetary Policy Committee and the government for not going far enough to help recovery.

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Labels: credit crunch, home loans, home loans-rates-UK, Quantitative Easing

# posted by Dr Search- Principal Consultant at the Search Clinic @ 2:50 PM 0 comments links to this post

Half of borrowers rely on high cost loans to survive, the Office for Fair Trading (OFT) has disclosed.

The figures come just a fortnight before Christmas, when consumers traditionally face a sharp rise in their outgoings – and it paves the way for borrowers to wake up with a financial hangover in the New Year.

The report highlighted where credit can be “damaging” when borrowers overstretch themselves and are left unable to repay the amount that they have borrowed.

It found 52 per cent are dependent on door step lending – which tends to focus on short-term, high cost loans. The interest rates found on these types of loan is typically higher than 50 per cent, but can extend to beyond 500 per cent.

And a quarter of these borrowers use the loans on a continuous basis to cope with their financial difficulties amid the recession.

Door step lending sees lenders offer unsecured loans– typically in the region of £300, which is repaid in installments to an agent who calls at the borrower’s home on a weekly basis.

As many as 26 per cent depend on credit cards while a further 19 per cent rely on store cards, according to the OFT’s report into high cost credit.

It suggested the total amount of credit was £228 billion in August 2008, reaching £230 billion in June 2009, before falling slightly in July and August to £229.5 billion.

The report suggested: “Consumers have reduced their expenditure and worked to rein in borrowing to protect themselves against the effects of the recession. It is clear however, that there is still a reasonable appetite for credit.”

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Labels: credit crunch, loans rates, recession, sub prime loans, UK loans rates

# posted by Dr Search- Principal Consultant at the Search Clinic @ 8:56 AM 0 comments links to this post

Each September the student loans rate changes, based on the Retail Price Index (RPI) rate from the previous March.

This March’s RPI was -0.4% however most students who could have expected to see student loan balances reduced in line with this will be disappointed. Only students who took out their loan pre 2008 will actually see their balances reduced by 0.4%. For students who took out the loan post 2008 the rate will be dropped from 1.5% to 0% this September.

As student loans were meant to linked to inflation, and this principle is not been followed, those students who took the loan out after 2008 are now out of pocket as their purchasing power is dilapidated. The monthly payments for students will remain at the same rate, as borrowers are required to pay back nine percent of their earnings over £15,000; so as the interest rate has been reduced to zero, the balance will reduce at a greater rate.

This is still not good enough for some students who believe that the principle should apply and that they should therefore benefit from this deflationary period by seeing the balances automatically reduced.

Deflation is now even higher than in March, sub one percent, so applying this principle to all student loans could put even more pressure on the economy in recession and the whole student loans system, as it could see the taxpayer funding further, greater reductions next year, and who knows about years to come.

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Labels: consolidate debt loans, credit crunch, loans, sub prime loans

# posted by Dr Search- Principal Consultant at the Search Clinic @ 8:48 AM 0 comments links to this post

Loans comparison websites, used by millions of consumers every month, are "misleading" because they give greater prominence to companies willing to pay their fees, according to industry experts.

They warn that families who rely on these websites could miss out on hundreds of pounds on the best credit card and loans deals.

Price comparison websites have increased in popularity during the recession as consumers use them to hunt down the best possible deals, with over 22 million people using one of these sites in the last three month.

However, many consumers do not realise that comparison sites make their money by earning a commission every time a consumer "clicks through" to a financial service provider's website to apply for a bank account, loan or insurance product.

On average the commission equates to about £40 for an insurance deal, with it rising to £150 on the most profitable loans. Some price comparison sites only list a selection of deals, excluding those companies that will not pay a commission.

The majority of sites attempt to list all providers, regardless of whether they pay a commission, but do not display the commission-free deals on their home page, or they make it quite difficult to find the commission-free deals.

Because most of the sites refuse to list deals that will not pay a fee on their home page it is very difficult for consumers to see the best possible deals.

For instance, one of the highest rates available on an easy access savings account with a £10,000 minimum deposit is The Ulster Bank's Pathway account, paying 3.6 per cent for the first six months.

However, it is not listed on the first page of Moneysupermarket.com's easy access accounts or uSwitch's initial search results for instant access accounts.

The deal is on both of these comparison sites, but consumers need to unclick the "accounts available on uSwitch" before it appears and users need to exit the "best sellers page" on moneysupermarket and conduct a full search. Even after doing that, users need to scroll down past the "sponsored products" to the "full results" to see it.

The Financial Services Authority has given comparison websites a clean bill of health, but the Office of Fair Trading earlier this year started an investigation to ascertain whether consumers were being misled.

It is understood that the OFT has concerns that the sites too often skew certain aspects of a deal – such as high excess amounts on insurance deals – in order to present some products in the most appealing light.

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Labels: credit crunch, Loan calculator, loans, loans rates, sub prime loans, UK loans rates

# posted by Dr Search- Principal Consultant at the Search Clinic @ 2:09 PM 0 comments links to this post

Consumer borrowing - excluding mortgages - recorded its biggest month on month fall since Bank of England records began in 1993.

This adds further evidence to the likely trend of people paying off loans rather than saving more during a time of low interest rates.

Unsecured loans fell by £713m in October compared with September.

But the number of mortgages approved for house purchases rose for the 11th month in a row in October.

The number of homeowners remortgaging remains subdued.

Debts repaid

Borrowing on credit cards rose by £134m in October compared with September, but was more than offset by the record fall of £713m in other forms of consumer credit such as bank loans, loans for cars, and hire purchase agreements.

It was the fourth month in a row that people repaid more than they took out in non mortgage borrowing.

The total stock of outstanding unsecured loans stood at £228bn - a similar level to January 2008.

Separate figures from the Building Societies Association (BSA) showed that there was a net outflow of savers' funds for the eighth consecutive month.

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Labels: credit crunch, loans, refinancing rates, sub prime loans

# posted by Dr Search- Principal Consultant at the Search Clinic @ 8:03 PM 0 comments links to this post

Everyone has a credit card and many carry a large balance.

The interest rate on a credit card balance is usually between 20-30% APR. These high interest rates make it difficult for people to pay down their debt when only making the minimum payment.

Credit Card Consolidation

Many factors which results in high credit card debt. With debt consolidation services you will pay significantly less and have more money for yourself each month. You will also receive the benefit of credit card debt consolidation. Making all of your unsecured debt into one simple payment. You will pay off your credit debt much faster. This is not a loan. No home ownership required is ever required.

Debt Consolidation

Debt management plans are very common and are used by thousands of people each year to deal with large amounts of unsecured debt. This system is also referred to as debt consolidation because it involves consolidating all your debts into one plan with only one payment.

Under a payment plan of this sort, a debt management company sets up new arrangements with all your creditors, so that you have less money to find each month. You then make a fixed payment to the debt company every month until the date at which you become debt free again.

As well as having the effect of stopping the daily calls by creditors, a plan of this sort is clearly very simple to organize and keep track of.

To set up a debt management plan you must have an income and be able to afford a reasonable amount for the monthly payment. If your situation is such that you cannot stretch to that, then debt settlement could be the solution for you.

This is a radical technique that ends up with a lot of your debts actually being written off. It is only by seriously reducing the core amount that you owe that a really serious debt situation can be turned

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Labels: consolidate debt loans, credit crunch, home loans, refinancing rates, sub prime loans

# posted by Dr Search- Principal Consultant at the Search Clinic @ 5:50 PM 0 comments links to this post

Nearly anyone is susceptible to get behind on their monthly payments and obligations to lenders, which is when a fresh start loan can be of the maximum benefit for most borrowers.

Perhaps you have experienced a recent illness, injury, or even death in the family and have gotten behind on your bills. No matter what reason you have for finding yourself in arrearage on your bills, a debt consolidation loan can allow you to pay off your existing creditors and avoid bankruptcy or even foreclosure.

When a borrower gets behind on their loan payments, credit card payments, or other bills, what follows is never pretty. It seems that a constant and persistent stream of calls from creditors becomes very intrusive and can be very stressful. To make matters worse, interest charges continue to accumulate on the bills that you have due, or your accounts are subject to late payment penalties or other charges.

For more information on debt consolidation loans, please click here now

A debt consolidation loan will allow you to put all of these dreadful circumstances into the past by allowing you to combine all of the current payments and debts that you owe into a single loan that features one easy-to-handle monthly payment that is based on your ability to repay your creditors.

Finances are usually written for £25,000 or less, but can be more depending on your particular needs and your financial situation at the time of the application for consolidation.

The process of receiving your finance is a streamlined and expedient one in most instances. Many borrowers are happy to find that within just a week or so, they have completed the loan application process and received funding to get a fresh start.

The payment that you will be required to make will be less than the total of the combined payments you are making to many lenders right now, which allows you to keep more of the income that you bring home from your job to take care of the many expenses of life (without running up more credit card or loan debt).

Your finance can be secured or unsecured, and the type that you take can have a big impact on the amount of interest that you will be charged for the life of your loan. The secured debt consolidation loan (collateral required) is the cheaper of the two types of loans for borrowers with all types of credit. The unsecured debt consolidation loan (no collateral is required) is more expensive in terms of interest.

The secured debt consolidation loan is usually the best choice for homeowners who want to save money on interest charges. The unsecured debt consolidation loan is the ideal loan instrument for those borrowers who do not wish to risk their assets to secure funding for the loan, or for those who do not own their own home or other asset of value.

For more information on debt consolidation loans, please click here now

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Labels: consolidate debt loans, credit crunch, home loans, Loan calculator, loans, sub prime loans, UK loans rates

# posted by Dr Search- Principal Consultant at the Search Clinic @ 8:03 PM 0 comments links to this post

Three quarters of universities in England have been forced to bail out students following huge delays to loans and grants.

On average, institutions have paid £44,000 each in emergency funding to students left without money for rent, books and food.

Tens of thousands are still waiting for their first maintenance payments as the Student Loans Company (SLC) struggles to cope with record demand for funding.

Applications are believed to have been fuelled by the recession and a growth in the number of students starting university in 2009.

The BBC surveyed 58 universities and found 49 had been forced to make more hardship payments this term compared with the same period in 2008. Some 43 institutions attributed the rise to the loans crisis.

Portsmouth University has paid £80,000 to students waiting for loans and grants.

John Craven, vice-chancellor, said: "We are angry on behalf of our students who have been badly hit by this.”

Labour ministers ordered an inquiry after almost 150,000 students who had applications approved were left without funding at the start of the new academic term.

Quite how this incompetence will effect brown's chances of selling off the SLC remains to be seen.

The Student Loans Company processes payments for loans and grants. It is the first time grants have been handled by the SLC instead of local authorities.

Data published last week revealed 119,000 students who had their applications approved were still waiting for their first maintenance payments.

The National Union of Students has called for Ralph Seymour-Jackson, the company’s chief executive, to resign.

Sally Hunt, general secretary of the University and College Union, said: “It is totally unacceptable that so many students are still waiting to receive money, particularly first year students.

Universities are providing help where they can and it is vital students seek financial help and guidance from their institution and students’ union, as we have real concerns about the loan sharks that are circling around some universities."

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Labels: credit crunch, loans, sub prime loans

# posted by Dr Search- Principal Consultant at the Search Clinic @ 2:44 PM 0 comments links to this post

The buy to let home loans mortgage market grew for the first time in two years during the third quarter, new figures show.

A total of £2.1bn was advanced to investment landlords during the three months to the end of September, 10pc more than during the previous quarter, the Council of Mortgage Lenders said.

But despite the improvement, the figure was still the second lowest since records began in 2006 and well down on the peak of £12.4bn lent during the third quarter of 2007. There was also a 10pc increase in the number of buy-to-let mortgages advanced during the three months, at 23,700, up from 21,600 during the previous quarter.

A total of £1.19bn was advanced to landlords buying a property during the third quarter, with a further £840m lent to people remortgaging. The CML said remortgaging levels had been held back during the period by the fact that no mortgages were available to people borrowing more than 80pc of their property's value.

It said landlords with less than a 20pc equity stake in their property were being forced to stay on their lenders' revert rate when their existing deal came to an end, although it added that, with interest rates remaining low, this was relatively painless for them.

There was a slight increase in the number of buy to let properties that were repossessed by lenders during the third quarter, with this rising from 1,400 to 1,600, the equivalent of 0.14pc of all buy-to-let loans.

But there was a 32pc fall to 1,700 in the number of properties that had a receiver of rent appointed – an alternative to repossession that enables tenants to stay in their home.

The number of landlords who were in arrears also fell for the third quarter in a row, with 20,500 people in arrears of at least 1.5pc of their outstanding mortgage at the end of September, down from 22,900 three months earlier.

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# posted by Dr Search- Principal Consultant at the Search Clinic @ 3:36 PM 0 comments links to this post

Eight out of ten people admit they feel anxious about their finances, with many saying their worries affect their performance at work.

Around 5 per cent of people say they have taken time off work during the past 12 months because of their money worries, while seven out of 10 people admit they spend time thinking about their finances when they should be working.

More than a third of those questioned said their financial concerns prevented them from performing at their best, with 4 per cent saying they spend at least four hours a day worrying about money.

The most pressing concern for most people is paying their bills and repaying debt, although 35 per cent of those questioned said they were also worried about the economic recovery.

Just over half of people said they planned to try to save more, but 56 per cent admitted they did not set aside any time each month to manage their finances.

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Labels: credit crunch, home loans, recession, sub prime loans, uk recession

# posted by Dr Search- Principal Consultant at the Search Clinic @ 2:15 PM 0 comments links to this post

If you make an application for a loan or credit and are rejected, it can have a negative impact on your credit record. Here's a useful new way to avoid that fate:

If you've ever been turned down for a credit card or other financial product you've no doubt felt frustrated, confused or just plain annoyed - why on earth were you turned down?

Since the credit crunch lenders have become pickier about whom they will lend money too, applying increasingly stringent criteria. And as we all know, a good deal of their information is obtained from credit agencies - companies that hold details of our financial dealings.

Whenever we apply for a financial product, the lender involved carries out a credit search (which essentially gives them an idea of how likely they are to get their money back).

However, these searches leave so-called "hard footprints" on your credit record. When you come to apply for credit again, future lenders can see if you've been turned down in the past - and on the strength of this decide to offer you a more expensive deal than the one you've applied for, if indeed they make you an offer at all.

And too many failed applications in a short space of time can create a cluster of hard footprints which could scare future lenders off as you look desperate for credit. Yikes.

But that may be about to change. Barclaycard has launched an innovative "Credit Pre-application Check" which claims to tell us within one minute whether we would be accepted by the company for credit.

And the best bit is it won't leave a hard footprint on your credit record (instead it leaves only a "search footprint" that shows your information has been accessed). So you should be able to see how likely you are to be approved a Barclaycard credit card, whilst not affecting your ability to get credit in the future.

So what does the check entail? Well I took a look at the site and discovered that after entering your personal details you must then enter your employment status, pre-tax earnings, whether you're a Barclays' customer and how you intend to use the card (whether it's for a balance transfer, to make purchases or to earn rewards on purchases).

Enter the details, click "submit" and you should receive a result within seconds.

Depending on the type of card you're interested in, Barclaycard will tell you the percentage likelihood of you being accepted, should you choose to apply for it.

Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.

Labels: credit crunch, UK loans rates, uk recession

# posted by Dr Search- Principal Consultant at the Search Clinic @ 7:56 PM 0 comments links to this post

Bad credit card debt loans may reach as much as 9% of all outstanding balances by the end of next year, an accountancy firm has said.

"Bad debts in the sector have reached historic highs," according to PricewaterhouseCoopers (PwC). The figure stands at about 6% now.

This comes despite a "cooling passion" for credit cards, with borrowing down 3% to £64bn in the past year. The number of credit cards in circulation has fallen by 8%, it said.

The past year has been a "tipping point" for the willingness of people to take on more unsecured debt, PwC said in the latest edition of its annual report "Precious Plastic".

Total consumer debt including mortgages stayed the same at just under £1.5 trillion.

Within that, unsecured lending via credit cards, bank loans and hire purchase agreements was largely unchanged at £230bn.

But the stock of debt outstanding just on credit cards fell.

PwC pointed out that this new declining trend reflected not only consumer choice, but the decision of card companies to restrict new lending to customers who are more creditworthy.

"The recent announcement by one major issuer that they would not generally seek to acquire new credit card customers without those same customers also holding a current account with them is in stark contrast to the time when credit card issuers accounted for one in every four pieces of junk mail that made it through our letterboxes," PwC said.

The accountancy firm forecast that as bad debts rose, the borrowing rates on cards would also go up, and monthly or annual fees would become a standard feature as lenders sought to increase their revenue.

"At the higher end of the market customers will pay for access to premium benefits and at the lower end more marginal customers will be expected to pay for even a standard credit card," the firm said.

PwC's report warned that while UK consumers were now borrowing less than before the financial crisis, debt levels in the UK remained high compared with the rest of Europe.

Each UK household has total average debt of about £60,000, made up of about £50,000 of secured debt and £10,000 of unsecured debt, PwC said.

Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.

Labels: credit crunch, home loans, loans, UK loans rates

# posted by Dr Search- Principal Consultant at the Search Clinic @ 10:54 AM 0 comments links to this post

The Bank of England’s monetary policy committee voted today to expand its vast programme to pump cash into the UK economy by £25bn, in a sign that it remains worried about the outlook in spite of incipient signs of recovery.

The move to increase “quantitative easing” – creating money in order to boost spending – from the existing £175bn used had been widely expected by economists after official figures suggested the UK remained mired in recession in the third quarter.

However, the addition of a further £25bn to the programme, which is likely to be used mostly to buy government debt, signals a slowing down in the pace of the Bank’s pace of monetary easing. In August the Bank had opted to expand the programme by £50bn, which has been used up over the last three months.

The additional £25bn in quantitative easing will take the total programme undertaken by the Bank to £200bn. The new money will be spent over the next three months.

The MPC said that the world economy had “shown signs of recovery” and that asset prices had risen internationally, “reflecting both the gradual improvement in the economic climate and accommodative monetary policies.”

In the UK, it said that although the third quarter had registered a continued contraction in the economy “a number of indicators of spending and confidence, however, suggest that a pickup in economic activity may soon be evident.”

Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.

Labels: Bank of England, credit crunch, loans, Quantitative Easing, UK loans rates, uk recession

# posted by Dr Search- Principal Consultant at the Search Clinic @ 1:04 PM 0 comments links to this post

The GMAC-RFC mortgage lender has been fined £2.8m by the Financial Services Authority (FSA) for mistreating customers who fell into arrears. It has also been told to repay £7.7m, plus interest, to 46,000 of its borrowers.

The FSA said the company levied unfair charges on borrowers who fell behind with their repayments and was too eager to repossess them.

GMAC-RFC apologised and admitted some its charges had been excessive.

"In hindsight, we fully accept that for certain fees our estimates of the costs were not proportionate to the additional administration actually required," said a spokesman for the lender. "We will be writing to customers who incurred these specific charges when in arrears and will re-credit the charges plus interest," he added.

After setting up as a mortgage business in the UK in 1998, GMAC-RFC grew rapidly to become one of the UK's largest mortgage lenders, but it stopped making new loans last year.

The FSA's investigation of the company's lending practices between October 2004 and October 2008 found that:
• charges for dealing with people in arrears were "excessive and unfair"
• repossession proceedings were started before all other alternatives had been considered
• GMAC staff were not properly trained in dealing with arrears cases and repossessions.

Another three lenders are being investigated by the FSA over similar failings.

The consumers association Which? demanded they be identified.

"Instead of treating its customers in arrears fairly, GMAC decided to pile on the misery by squeezing more money out of them and, in some cases, taking their homes," said Which? personal finance campaigner, Dominic Lindley.

"This raises serious questions about the amount of time the enforcement process has taken, given that the FSA has known about these problems since mid 2008."

The fine is the largest yet to be levied by the FSA on a mortgage lender and the regulator warned that more may be in the pipeline.

"Mortgage lenders and third party administrators should read this final notice and the mortgage market review and take action in the interests of their customers," said Margaret Cole, director of enforcement and financial crime for the FSA.

In August the regulator was accused by MPs on the Treasury select committee of being "too leisurely" in enforcing the rules over how lenders should treat their borrowers.

The MPs said that the practice of loading extra fees on those in arrears was "intolerable" and said the FSA should stop lenders using repossession as a first, rather than last, resort.

Separately, the FSA revealed that financial services firms had received 1,510,000 complaints from the public between January and the end of June 2009, a 2% increase from the previous six months.

More complaints about the mis-selling of payment protection insurance drove up complaints about general insurance and "pure protection" policies by 19% to 334,443.

There were 208,000 complaints about misleading advice - a 19% increase.

But the proportion of complaints upheld by the firms dropped from 40 % to 38%, mainly due to more complaints being rejected by banks.

Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.

Labels: credit crunch, home loans, UK loans rates

# posted by Dr Search- Principal Consultant at the Search Clinic @ 11:23 AM 0 comments links to this post

Consumers shopping around for the best loan rates could be penalised if their credit rating reflects multiple applications, MPs have been told.

As part of their investigation into the issue the Treasury Select Committee was told that people who made several attempts to get a deal for a loan or credit card could hurt their credit score.

Banks and building societies are increasingly using so-called risk-based pricing, whereby rates are tailored to an individual borrower's circumstances.

But this means the consumer will find out what the price is only after a credit check has been completed. Each search could be logged on a person's credit file, potentially giving other lenders the impression they have applied for many products and been rejected.

Representatives from the industry said the record of multiple loan applications – rather than just successful deals – enabled firms to flag up issues such as high indebtedness or fraud.

But Martin Lewis, of MoneySavingExpert.com, told the panel that some consumers were forced into making several applications after finding they were not eligible for lenders' advertised rates.

He submitted case studies to the committee which included a consumer who said they had applied for a loan at a rate of 9pc but were actually offered one for 30pc. This, he argued, contributed to customers declining to take up one loan and applying for others, but by doing so he said their credit rating might be affected.

"The system is designed to stop shopping around at the detriment of consumer choice," he said.

The committee heard from industry members that legislation requires lenders to advertise an APR rate that 66pc of those taking up the deal will be able to receive.

The remaining customers – a third of those taking up the loan – were potentially paying a higher rate.

Not all lenders use the sorts of checks that would show up on a credit report. Nationwide for example has a policy of using only the softer touch surveys, while Barclaycard enables people to find out if they would qualify for one of its cards without having to make a full application.

Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.

Labels: credit crunch, loans, loans rates, UK loans rates

# posted by Dr Search- Principal Consultant at the Search Clinic @ 11:08 AM 0 comments links to this post

House prices in Britain will fall 10 per cent next year, reversing their recovery of recent months.

Rising unemployment and a failure of mortgage lenders to offer cheap home loans will mean property will stay unaffordable for too many consumers, forcing prices down in a "second wave of house price falls".

Capital Economics is predicting that house prices will fall by 10 per cent next year and 5 per cent the following year, taking the average price from £163,500 – on the Halifax house price index – to below £139,000 by the end of 2011.

The prediction implies that house prices will, having recovered in recent months, fall to below their trough back in April, when they hit a low of £154,500.

Capital Economics, which has a history of being bearish on house prices, admits it is being pessimistic, but warns that there was a downside to a rapid recovery in the economy. "While we may be underestimating the potential for an economic recovery, stronger growth would be accompanied by higher interest rates. That would only add to the pressure for lower house prices," it said.

Its pessimistic outlook on house prices follows two weeks after the ratings agency Fitch predicted house prices had a further 17 per cent to fall. Fitch argued that prices, despite their fall from the peak of the summer of 2007 when they hit £199,000, were still too expensive, when compared with the average earnings of British workers.

The severe shortage of houses on the market – as cautious owners hold back from selling at depressed prices – has caused a strong recovery in recent months.

In some areas such as Oxfordshire and London estate agents have even reported a return of gazumping, the practice of home buyers outbidding each other, even when the offer price has been accepted.

Capital Economics said this recovery was unsustainable, with the likelihood of severe job cuts in the public sector looming. Most economists, even the most optimistic, believe that unemployment is likely to climb from 2.47 million to close to 3 million next year, forcing many people to sell their houses.

Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.

Labels: credit crunch, home loans, refinancing rates, UK loans rates, uk recession

# posted by Dr Search- Principal Consultant at the Search Clinic @ 8:26 AM 0 comments links to this post

It's getting cheaper for banks to borrow money, but not for the likes of you and me.

Last week, the British Bankers Association - a trade body for banks, funnily enough - published a factsheet called Your Mortgage and the Markets explaining why, although it may seem like banks are profiting hugely by pricing their mortgages much higher than they need to, actually they're not.

It is the second time lenders have been forced to defind how they price their mortgages, after a similar publication from a second trade body, the Council of Mortgage Lenders, a couple of months ago.

I'm not surprised that they feel they have to explain themselves.

Cast your mind back a year or so ago to when Bank Base Rate first started falling to its current record low. Lenders would pull their entire range of trackers before a Base Rate decision, only to release a new, slightly more expensive range, a few days later - when it was actually cheaper for them to borrow money from the Bank of England!

The explanation? Banks don't just borrow funds from the Bank of England. They borrow from each other. And actually, nowadays, the banks were quick to explain, it is the LIBOR rate (the rate at which banks lend to each other) that is the crucial factor in determining the interest rates of loans and mortgages. And as that wasn't moving, tracker rates wouldn't.

Now of course LIBOR has fallen as well, so that it is barely any higher than the Base Rate, and surprise surprise, the banks have changed their tune.

The banks argue that the Bank Base Rate, LIBOR and swap rates (traditionally the mechanism by which lenders secured cash for fixed rate mortgages) are no longer indicators - the rates offered to savers are apparently a better guide.

This is because, they say, with the wholesale and securitisation markets effectively closed, banks are forced to rely on raising money through savings accounts, which is a pretty expensive method at the best of times. Add in the fact that all banks are in the same boat, competing for the same savings business, and you can see why costs might start to creep up.

But that doesn't mean you can simply dismiss things like LIBOR and swap rates as indicators of where mortgage pricing should be. They may not be the be all and end all, but they remain very important factors.

And they also shine the light on just how big a cut the banks are taking at the moment, a fact brilliantly outlined by some research from lovemoney.com partner, Moneyfacts.

Let's start with the average two year mortgage - forever and a day the favourite mortgage of Brits. In September 2007, for a 75% loan-to-value mortgage, the average rate was about 0.18 percentage points above swap rates. A year later, that margin had increased to 0.7 percentage points.

Today, it stands at an extraordinary 2.79 percentage points above the swap rates.

The position is even worse with high loan-to-value mortgages. With a 90% mortgage, in September 2007, that margin stood at just 0.02 percentage points. By last September it had reached 1.34 percentage points. And last month it stood at a whopping 4.25 percentage points above swap rates. So they're typically making more than 212 times as much profit on the funds they borrow using swap rates, than they were just two years ago!

No wonder the banks want us to ignore swap rates!

Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.

Labels: Bank of England, credit crunch, interest rates, Loan calculator, UK loans rates, uk recession

# posted by Dr Search- Principal Consultant at the Search Clinic @ 9:36 AM 0 comments links to this post

The rate of UK inflation fell more than expected last month, dropping to the lowest level in five years, as the downturn kept a lid on price pressures.

The Consumer Prices Index (CPI) showed that prices rose 1.1pc in September compared with a year earlier. City economists had expected the figure would come in at 1.3pc. Prices have not registered such a small increase since September 2004.

The CPI measure is used by the Bank of England to set the level of interest rates, which the Bank's Monetary Policy Committee has signalled are likely to remain at low levels for months as it seeks to shore up a recovery.

Economists had expected deflationary pressures in the economy to drive prices down below the 1pc threshold on a CPI measure which would force Mervyn King, the Governor of the Bank of England, to write a letter of explanation to the Chancellor.

However, CPI has remained higher thanks to the weak pound and a rise in fuel duty, factors that have helped offset the absence of higher utility bills compared with a year ago.

The Bank has embarked on a series of radical policy measures to combat the twin threats of deflation and depression, including slashing interest rates to a record low of 0.5pc and pursuing a programme of printing money, or quantitative easing (QE), which has seen £150bn injected into the economy.

The broader measure of inflation, known as the retail price index, fell 1.4pc compared with September 2008. Economists had expected a figure of 1.5pc.

The wider measure of inflation, which includes house prices and mortgage interest payments - the Retail Prices Index - has been negative since April.

Sharply lower mortgage interest payments compared with a year earlier have helped to keep the index in negative territory.

Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.

Labels: Bank of England, credit crunch, home loans-rates-UK, inflation, Quantitative Easing, uk recession

# posted by Dr Search- Principal Consultant at the Search Clinic @ 10:40 AM 0 comments links to this post

Loans interest rates will stay at rock bottom in the years to come as the labour Government tackles the wounded economy, a report says.

The cost of borrowing is to remain at its record low of 0.5pc until at least 2011 and remain below 2pc until 2014, according to a study by the Centre for Economics and Business Research (CEBR).

A weaker pound - slumping to just 1.40 US dollars and possibly falling below parity with the euro - is also expected.

The CEBR predicts the next government will have to engineer around £100 billion in tax rises and spending cuts to deal with the country's deficit.

Political parties are already vying to explain how they plan to address the dire public finances after next year's general election.

The report forecasts that should the Conservatives win power this will mean £20 billion in extra taxes with an £80 billion reduction in spending.

A future government will have to wrestle the budget deficit down to £50 billion by the 2014/15 financial year, a tough challenge as the CEBR also warns that the deficit will be £143 billion in that year without action.

The report also predicts the Bank of England will increase its quantitative easing (QE) programme - essentially printing money - by another £75 billion.

This month the Bank voted to not to increase its programme to boost the money supply from its current £175 billion.

But further QE is expected, not least because governor Mervyn King and two other committee members have already argued for a £75 billion boost to the scheme.

Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.

Labels: Bank of England, credit crunch, falling interest rates, interest rates, UK loans rates, uk recession

# posted by Dr Search- Principal Consultant at the Search Clinic @ 10:35 AM 0 comments links to this post

Britons reduced their home loans mortgage debt by £7bn during the second quarter of the year, according to the Bank of England.

Recent falls in house prices and the economic downturn have put people off taking money out of their property, leading to equity withdrawal being negative for the fifth quarter in a row

The rate at which people are repaying their mortgages is broadly similar to the first quarter of the year, when home owners made net mortgage repayments of £7.3bn, according to the Bank of England.

Home owners' focus on paying down their mortgages is in stark contrast to previous years, when people released equity from their properties to fund large purchases.

While people's focus on paying off their debts may be more prudent than tapping into their housing wealth to supplement their spending, it is bad news for beleaguered retailers.

The figures show that households spent the equivalent of 2.9pc of their post-tax income on reducing their mortgages. The latest figures are a far cry from the record £17.09bn of equity that was unlocked during the final quarter of 2003.

Equity withdrawal enables home owners to cash in on rising house prices by increasing their mortgages to convert some of the rise in the value of their home into cash. The money is typically used to fund big purchases such as cars or home improvements, or for debt consolidation.

But while people feel confident about increasing the size of their mortgage debt when house prices are booming, they are far less inclined to do so when they are falling and unemployment is rising.

House price falls of more than 20pc since the market peaked in July 2007 also mean many people no longer have sufficient equity left in their property for them to withdraw, even though house prices rose for the fifth month in a row in September, according to new figures from Nationwide Building Society.

The credit crunch has also led to banks and building societies tightening their lending criteria, making it more difficult and expensive for people to extend their mortgage, particularly if they have only a small equity stake left in their home.

Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.

Labels: Bank of England, consolidate debt loans, credit crunch, home loans, Loan calculator, loans, mortgage calculator

# posted by Dr Search- Principal Consultant at the Search Clinic @ 9:57 AM 0 comments links to this post

Large families are returning to the property market with gusto, chasing homes in the London neighbourhoods with green spaces, good schools, period architecture, smart little shops and farmers’ markets.

Prices are recovering most strongly in the area of southwest London stretching from Fulham to Richmond, taking in Chiswick, Clapham, Wandsworth and Wimbledon — amid rising concern that values in locations outside the capital could stagnate for some years.

These suburbs, popular with City bankers and members of the professions and their families, were the first to be affected in the downturn. But prime southwest London is now resurgent, eclipsing Belgravia, Chelsea and the rest of prime Central London.

In the past three months, prices have climbed by an average of 8.4 per cent, after growth of 6.4 per cent in the previous quarter. Prices are 2.5 per cent higher than a year ago, cancelling out the decline that followed the fall of Lehman Brothers.

Savills, the estate agent, calculates that the average £1 million home in southwest London is appreciating in value by £741 a day, whereas the average £2 million Chelsea property is adding only £713 a day.

Bankers, or at least their wives, who are looking for a home are prepared to spend about £2 million — a typical boomtime budget. Nearly three buyers are pursuing each property for sale.

The good mood in Clapham, Fulham and Wandsworth and the other leafy suburbs is beginning to spread into other parts of London, including Docklands. Prices are also rising in the commutable parts of Kent and Surrey. Winchester, in Hampshire, is another bright spot.

But Savills is much less optimistic about the outlook for other regions, fearing the development of a two-tier market of some duration. Yolande Barnes, a Savills research director, said that buyers remained locked out by lenders’ insistence on hefty deposits. Unemployment, public sector spending cuts and the likelihood of higher taxes could also be a drag on prices.

Ms Barnes believes that the shortage of credit available to such buyers may contribute to a permanent reversal of the century-long trend for increased ownership. Fewer than 70 per cent of householders own or are buying their home, a level not seen since the mid-1990s.

Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.

Labels: credit crunch, home loans, Loan calculator, loans, UK loans rates, uk recession

# posted by Dr Search- Principal Consultant at the Search Clinic @ 9:34 AM 0 comments links to this post

The FTSE 100 slid into negative territory yesterday as investors booked profits after a six day winning streak came to an end.

The index closed 38.53 points down at 5,134.36, after hitting an intra-day low of 5,108.35.

The biggest drag on the London market came from the mining sector, with shares falling on the back of lower commodity prices. Fresnillo, the silver miner, fell 28½p to 753½p, Rio Tinto slid 93½p to £26.44½p and Vedanta Resources slipped 70p to £19.40 after Goldman Sachs cut its rating to “neutral”. Kazakhmys, a key riser last week, also fell after a rating downgrade, tumbling 37p to £10.87p after Citigroup cut its recommendation to “hold”.

Even speculation that BHP Billiton could be ready to spark a new round of consolidation in the global mining sector, possibly via a bid for Anglo American, was not enough to ignite any excitement. BHP fell 46½p to £17.03 while Anglo American closed 21½p down at £20.50½p. The acquisitive Xstrata fell 35p to 930p while Lonmin, the platinum miner linked with a takeover, fell 45p to £16.99.

With investors in the mood to book profits, it was no surprise that some of last week’s leading risers lost ground. Wolseley, the plumbing merchant, fell 59p to £14.28 while Autonomy, the software group, which was higher after its entry into the database search market last week, fell 37p to £15.37 despite a “buy” note from Investec.

Tullow Oil surged after multiple oil finds last week, but it slid 21p to £11.58p while other oil stocks also lost ground as the crude price dropped below $70 a barrel. BG Group fell 28p to £11.11 and Cairn fell 12p to £27.17.

New York: A stronger dollar ignited a sell off in commodities, including oil and gold, which weighed on energy and material stocks. The Dow Jones industrial average was 41.34 points down at 9,778.86 at the close.

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Labels: consolidate debt loans, credit crunch, falling interest rates, Loan calculator, Oil

# posted by Dr Search- Principal Consultant at the Search Clinic @ 10:51 AM 0 comments links to this post

Bank of England says that sterling's fall could reflect long term change in Britain's economy, with lower demand for its goods

The pound hit a five month low against the euro today after the Bank of England raised the prospect of a prolonged fall in the value of sterling against other currencies as a result of the credit crisis.

In its Quarterly Bulletin, the Bank tried to explain the reasons for the collapse in value of sterling since the final quarter of last year. It said: "It is possible that sterling's depreciation may be part of a more prolonged process of rebalancing of the UK economy, generating a fall in the long-run sustainable real exchange rate."

It pointed out that Britain has run current account deficits, financed by foreign investors buying British assets, since the mid-1990s. The financial crisis, however, may have forced those overseas investors to look elsewhere.

"The financial crisis may have led overseas investors to reasses their willingness or ability to purchase sterling assets and thereby finance the UK trade deficit. As a result, the long-run sustainable real sterling exchange rate ... may have fallen."

It also said that the Bank's programme of asset purchases - quantitative easing - may be having an effect. "Sterling will tend to depreciate if this policy causes portfolios to be balanced away from UK assets."

The Bank said: "There are several reasons why market participants might perceive that the financial crisis has prompted a fundamental shift in demand away from UK goods and services."

It said that Britain's higher dependence on financial services could have driven a permanent fall in the incomes of companies and households, while the global credit crisis could have caused a persistent fall in the global demand for financial services.

The euro rose 0.2 per cent against sterling to 90.79p, its highest since late April.

Against the dollar, it was down 0.6 per cent at $1.6175, near its weakest level in nearly three weeks.

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Labels: Bank of England, credit crunch, Quantitative Easing, uk recession

# posted by Dr Search- Principal Consultant at the Search Clinic @ 10:46 AM 0 comments links to this post

The appauling state of Britain’s public finances were laid bare today as the labour Government unveiled new figures that showed public sector net borrowing swelled by a record £16.1 billion in August.

It was the largest increase in the amount of new debt held by the UK Government since records began.

With the recession continuing to eat into government tax receipts, the Office for National Statistics said that public sector net borrowing hit £16.1 billion, up from £9.8 billion a year ago.

The figures will deal a further blow to Chancellor Alistair Darling’s hopes of restoring order to the nation’s finances.

The increase pushed net borrowing to £65.3 billion for the five months of the financial year so far, according to the ONS. That is more than twice the £26.1 billion seen at the same stage last year.

The public sector posted a net cash requirement of £10.3 billion in August - double the level of the same month a year ago.

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Labels: credit crunch, home loans, Loan calculator, loans, uk recession

# posted by Dr Search- Principal Consultant at the Search Clinic @ 12:05 PM 0 comments links to this post

Gordon Brown was accused last night of misleading the Commons after leaked Treasury papers disclosed unpublished government plans to cut spending by £36 billion a year by 2014.

David Cameron said that while Mr Brown was accusing the Conservatives of planning cuts of 10 per cent, and insisting that he did not want to do the same, his own officials were telling him that spending might have to be reduced by 9.3 per cent in five years.

The papers suggest that the Treasury privately took a far more pessimistic view about long-term unemployment and the cost of servicing the national debt than did independent commentators at the time of the Budget.

The document, headed HM Treasury Fiscal Tables, projects that spending will be reduced by just under 1 per cent in 2010-11, 4 per cent in 2011-12, just under 2 per cent in 2012-13 and 3 per cent in 2013-14.

Based on figures published at the time of the spring Budget, the Institute for Fiscal Studies (IFS) suggested that the Government would cut spending by 7 per cent by 2014. The Treasury’s own “assumptions”, based on Alistair Darling’s declared intention to cut the budget deficit in half by 2014, were more conservative than that. Its figures, circulated within the Treasury in June, suggested that social security spending would rise to £193billion, a real-terms increase of 2.1 per cent, as late as 2013-14, squeezing government spending elsewhere.

The papers also project that debt interest payments will rise from £27billion this year to nearly £64billion in 2013-14. The IFS had based its figures on the payments rising to £52billion.The leak was damaging to Mr Brown but also presents a challenge to Mr Cameron, who has said that he will cut the deficit faster than Labour.

Conservative officials emphasised last night that the figures showed the scale of the task facing any government. They pointed out that their existing plans meant that they would begin cutting spending a year earlier than Labour.

Mr Cameron told a press conference that Mr Brown’s integrity was on the line. “Gordon Brown was denying something that his own civil servants were telling him was true,” he said. It was a “cover-up” of the true state of the nation’s finances.

“Wednesday after Wednesday, the Prime Minister stood up in the House of Commons and repeated the line that the coming battle was between Labour investment on the one hand and Tory cuts on the other,” he said. “All those words have turned to dust and, as I consistently warned week after week, reality has now caught up with our Prime Minister.”

Mr Cameron said that the Conservatives had been candid about the need for spending cuts and would spell out their plans in more detail closer to the next election. “Let me make it clear: they are not wrong to be planning cuts but they are wrong to try to cover up their plans for cuts,” he said.

“This is about honesty, it is about trust. This is about not taking people for fools and on this issue, as I have to say on so many others, the Prime Minister does not seem to have learnt.”

George Osborne, the Shadow Chancellor, went farther, saying: “This is about Gordon Brown misleading the House of Commons, not telling the public the truth about his own Budget.”

Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.

Labels: consolidate debt loans, credit crunch, labour liars, Loan calculator, uk recession

# posted by Dr Search- Principal Consultant at the Search Clinic @ 9:30 AM 0 comments links to this post

British unemployment hit 2.47 million in July, its highest level since 1994, as 210,000 more people lost their jobs.

The number of people claiming jobseeker’s allowance rose by 24,400 to 1.61 million in August — the highest since May 1997 and the eighteenth monthly rise in a row, according to the Office for National Statistics (ONS).

The recession’s impact on young people was also underlined by jobless totals among 16 to 24-year-olds reaching 947,000 — the highest level since ONS records began in 1992.

The jobless rate among young people also hit a record 19.7 per cent, meaning one in five is looking for work.

Unemployment is set to rise despite indications that British economy has returned to growth.

Mervyn King, Governor of the Bank of England, said yesterday that there were signs that the British economy was growing again though he added that the strength of recovery remained "highly uncertain".

Earlier in the week, a European Commission study concluded the economies of Britain and Continental Europe would return to growth by the end of the year while last week a study from the National Institute of Economic and Social Research, a leading think-tank, said Britain was climbing out of recession.

However, both warned that, following the emergence from recession, a period of stagnation could follow.

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Labels: Bank of England, credit crunch, Loan calculator, UK loans rates, uk recession, unemployment

# posted by Dr Search- Principal Consultant at the Search Clinic @ 10:00 AM 0 comments links to this post

Alan Greenspan, the former US Federal Reserve chairman blamed in some quarters for not doing enough to prevent the financial crisis, has predicted that more crashes are inevitable.

Speaking a year after the collapse of Lehman Brothers, the US investment bank, Mr Greenspan said: "The crisis will happen again but it will be different. They (financial crises) are all different, but they have one fundamental source," he told the BBC. "That is the unquenchable capability of human beings when confronted with long periods of prosperity to presume that it will continue."

He added that, although the current crisis was triggered by the trade in US sub-prime mortgages, any factor could have been the catalyst. "Something sooner or later would have emerged", Mr Greenspan said.

The former US central bank chief claimed that the world's financial institutions should have foreseen the looming crisis. "The bankers knew that they were involved in an under pricing of risk and that at some point a correction would be made," he said. "I fear too many of them thought they would be able to spot the actual trigger point of the crisis in time to get out."

He also warned that Britain would be harder hit than the US by the current recession and collapse in world trade.

"Obviously we've both suffered very considerably but ... Britain is more globally oriented as an economy and the dramatic decline in exports globally and trade generally following the collapse of Lehman Brothers had dramatic effects in the financial system of Britain," Mr Greenspan said. "It's going to take a long while for you [Britain] to work your way through this."

But he cautioned that the path to recovery should steer clear of protectionism as applying strict regulations could hamper recent developments that have opened up global trade. "The most recent endeavour to re-regulate is a reaction to the crisis.

The extraordinary impact of these global markets is making a lot of financial people feeling they have lost control. The problem is you cannot have free global trade with highly restrictive, regulated domestic markets."

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Labels: Aussie loans rates, credit crunch, Greenspan, Loan calculator, recession, sub prime loans, uk recession

# posted by Dr Search- Principal Consultant at the Search Clinic @ 1:46 PM 0 comments links to this post

Pay controls are a sign of panic. Leaders from Edward III to Edward Heath have discovered that they do not work

The Black Death of 1349 was a low probability, high impact event; so was the banking crisis of 2008, and the insolvency of Lehman Brothers. When such events do occur, political leaders are under pressure to respond, as the Emperor Hirohito of Japan had to respond to the atom bombs dropped on Hiroshima and Nagasaki in 1945. His comment was that the war had gone “not necessarily to Japan’s advantage”. Japan surrendered.

In the aftermath of the Black Death almost half the population died, resulting in an acute shortage of labourers. This shortage in turn led to higher pay and higher prices. King Edward III, who was one of the most successful monarchs in Europe, responded with a statute that fixed maximum wages.

This measure failed to prevent a further rise in wages and prices. Fifty years later legislation had extended to include fixed wages for bailiffs in cities and boroughs as well as rural districts. Pay controls, once adopted, have a nasty habit of spreading.

If City bankers are to be controlled, why not lawyers or accountants?

Panic leads to pay controls and pay controls fail to achieve their objectives. When governments try to close the loopholes, they end up with failed regulation. Most politicians and most bureaucrats have a better knowledge of politics than economic history. They plunge their countries into a sea of largely ineffective regulations, in which some businesses swim but others drown.

In examining the policy options on banking regulations that face the G20, one should not forget the contribution that the regulators made to the 2008 recession. British regulators failed to foresee the recession.

The banks may have failed badly in their judgment of risk, but so did the regulators, including the Treasury, the Bank of England and the Financial Services Authority.

It is not clear why further regulation should prevent another crash, when regulation did so little to prevent this one, and so much to make it worse. In particular, the retired Chairman of the Federal Reserve Board, Alan Greenspan, floated the United States economy on a tide of debt.

He was so afraid of the impact of a bubble imploding, that he always intervened to prevent it. When the dot.com bubble did implode, he allowed the sub-prime housing bubble to take its place and the housing bubble proved to be the more dangerous of the two.

In all this one should not forget the contribution of Bernard Madoff, or rather of the failure of the United States Securities and Exchange Commission (SEC) to detect what he was doing. They never did catch him before he handed himself in.

Last week the inspector general of the SEC, David Kotz, published his report into the fraud. It chronicled a series of warnings. For instance, as early as 2003 one hedge fund manager wrote to the SEC saying that he saw signs of a Ponzi scheme at Madoff’s New York business.

SEC officials did start an investigation, could not understand the answers Madoff gave them, and went away to look into something else they could understand. They might have saved at least five years’ growth of what became a $40 billion fraud.

There is a simple reason why the bankers who receive bonuses can usually outsmart the regulators. It is because the bonus bankers take the jobs that offer the highest rewards; they earn more than the regulators.

Successful investment bankers can count their pay in millions, whereas regulators are paid at most in hundreds of thousands. The job of an investment banker is more exciting, even if the job of a regulator can be more secure.

People who have the temperament of entrepreneurial bankers are not put off by the career risks of the entrepreneurial role. In any case, they are trained to find the best way through regulatory systems and to minimise taxes.

Oddly enough, it was not the taking of undue risks that was the detonator of the 2008 crisis. The common characteristic of the Madoff victims was that they were risk averse; they wanted a secure return, not a spectacular one.

Bankers were also largely risk averse. As Sir Martin Jacomb, a former director of the Bank of England, has put it: “At the heart of the catastrophe was a single regulatory error: the failure of Basel rules to impose weighty capital requirements on the super-senior tranche of securitised mortgage obligations held in banks’ trading books.”

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Labels: Bank of England, credit crunch, recession, refinancing rates, Wall Street

# posted by Dr Search- Principal Consultant at the Search Clinic @ 9:21 AM 0 comments links to this post

Britain's economy will lag other developed nations in emerging from recession, according to the Organisation for Economic Co-operation and Development (OECD).

The organisation, which exists to promote economic growth and development, said that several of the economies in the G7 group of developed nations would perform better during the whole of 2009 than it predicted in June — with Britain a glaring exception.

The news will come as an embarrassment to Gordon Brown and Alistair Darling ahead of this weekend's meeting of the G20 finance ministers in London and a summit in Pittsburgh beginning on September 24.

The OECD said that it now expected the UK economy to contract by 4.7 per cent for the year as a whole. That compares with the 4.3 per cent contraction it forecast in its June Economic Outlook forecast.

Britain was the only member of the G7 group of developed nations for which the Paris-based organisation has reduced its growth forecast since June. The OECD now expects the eurozone to suffer a 3.9 per cent contraction during the year, compared with the 4.8 per cent previously forecast, while the predicted contraction for Japan's economy has come down from 6.8 per cent to 5.6 per cent.

Within the eurozone, the outlook for Germany and France has improved significantly, with the German economy predicted to contract by 4.8 per cent this year — down from the 6.1 per cent forecast by the OECD in June. The organisation also expects the French economy to contract by only 2.1 per cent this year — down from the 3 per cent reduction it expected three months ago.

It predicted that the UK economy would contract by 1 per cent during the third quarter of 2009 — lagging the US, Japan, Germany and France — and forecast it will experience zero growth during the fourth quarter of the year.

Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.

Labels: credit crunch, euro, G7, OECD, uk recession

# posted by Dr Search- Principal Consultant at the Search Clinic @ 11:57 AM 0 comments links to this post

Credit cards you guide to unsecured loans in plain english

What exactly is a credit card?
How do credit cards work?
Do all credit cards offer the same service?
How do I get a credit card?
Am I obligated to accept the offer if I apply?
What if my application is rejected?
Are there any credit card traps?
How is my credit limit determined?
How am I judged when applying for a credit card?
How do I check my credit rating?
Does applying for a credit card affect my credit status?
Why do providers put so much importance on a good credit history?
I've had credit problems. Can I still qualify for a credit card?
How much do they cost?
How are interest charges calculated?
What does 'grace' or 'interest free' period mean?
How should I pay the bill?
Must I pay the full bill each month?
How can I make sure I never miss paying my bill on time?
What will happen if I can't afford to pay the outstanding balance?
What is a balance transfer?
What is Payment Protection?
What is an affinity card?
What is a secured card?
What is a guaranteed card?
What is an unsecured card?
What is a debit card?
Is a credit card the same as a charge card?
Do all cards offer travel rewards?
I thought ATM cards had PIN numbers. Why do credit cards have them?
Where can I withdraw money using my credit card?
Can I get cash on my credit card?
Why am I charged more interest when I use my credit card to get cash?
Are credit cards cheap to use when abroad?
How can I be sure that I make the right choice?
Are credit cards safe?
Is it safe to give out my credit card number when buying goods or services by phone or on the Internet?
Do I get proper consumer protection if I use a credit card?
If I have a problem with my credit card whom should I contact?
What if I lose my card?
How do I know where to find your website again?
What is a cookie?
Please just click here now for all of your credit card and unsecured loans needs credit card calculator

What exactly is a credit card?
A credit card represents a loan agreement where you are offered credit, providing you pay off a minimum amount each month. You can charge purchases up to the amount of your credit limit and pay for them later.
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How do credit cards work?
With a credit card, as long as you do not exceed your credit limit, you can spend whatever you wish, wherever your credit card is accepted. You are required to pay a minimum amount off the balance each time you receive a billing statement. The usual minimum payment is approximately 3% - 5% of the balance. You can sign for purchases or you can purchase by telephone or the Internet. There are many different card issuers, but most operate through two worldwide credit card networks - VISA and MasterCard.
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Do all credit cards offer the same service?
No, there are huge differences in the services provided by credit card issuers. For example, there are cards available to people at a set minimum income level, e.g. Gold/Platinum cards, and these may provide more benefits to the customer. With Affinity and Charity cards, a small percentage of what you spend is donated to an affiliated organisation. Reward programmes offer air miles, shopping points, cash rebates or special discounts. If you do not pay your balance, you may lose these benefits. Other features include access to cash machines, travel insurance, and special introductory rates. Purchase Protection is available in the case of loss, theft or damage to goods you purchase with your card.
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How do I get a credit card?
It's easy! Just complete the following 5 steps:

Through our Find the Right Card option, you can interactively search for a credit card based on the features most valuable to you. You can compare using your own personalised criteria, whether its price, brand or reward programmes.
The results of this comparison will be presented in graphical format together with the relative importance in percentage of the most valued features to you.
After comparing your most valuable features, you will be presented with a list of ten suitable credit cards. Each card is given a percentage so you can see how close each product matches your preferences. You can view the details for each of the credit cards in the list to help make a decision.
For our on-line partners, you can complete the application form for their products on this site and send it off. All aspects of your application are assessed by the product provider, and a decision is provided within 24 hours.
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Am I obligated to accept the offer if I apply?
If you apply and are approved for a credit card, you are under no obligation to accept the offer. An offer will be sent to your listed address and you choose to accept by returning the signed document to the product provider.
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What if my application is rejected?
If your application is rejected, you can ask your credit card provider to review the application. If a credit reporting agency has been used, you can ask for the agency name and address. Write to them requesting any details held on you. Remember that you can apply for more than one card - however for credit rating reasons it is not advisable to apply for more than five cards within a 6-month period.
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Are there any credit card traps?
With credit cards it's very easy to borrow without realising how much, until you receive your monthly statement. So, try to keep track of your spending. Credit cards can be a costly form of borrowing so look out for other loans, such as personal loans, that might better suit your needs. Always keep your receipts and check them against your statement. If you do not recognise an item on your statement, contact the provider immediately. Note that if you use your card overseas, sometimes it takes longer for items to appear on your statement.
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How is my credit limit determined?
Your credit limit is determined by a combination of things, including your credit history, income and amount of debt. These conditions are also used to determine what type of card you may be offered. For example, some standard cards have credit limits of up to 3,000. Gold and platinum cards may offer extended credit limits to customers with well established and very favourable credit histories. Customers without a credit history or with blemished credit histories tend to be offered secured cards or unsecured standard cards with lower credit limits. Once a cardholder's credit history is established or improved, cards with higher credit limits can be obtained.
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How am I judged when applying for a credit card?
Judgement criteria can vary from one card provider to another. However, your income and your credit history are the two main criteria. Many card providers rely on data from credit reporting agencies.
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How do I check my credit rating?
First of all, you need to understand how the system works. Remember that you do not have a right to credit, and before giving you credit, lenders such as banks and loan companies want to check that you are an acceptable risk. To help them do this, they check with firms called credit reference agencies (CRAs) to get details about you and your credit record.
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Does applying for a credit card affect my credit status?
Yes. Every time you apply for a credit card, an inquiry is made as to your credit status. This inquiry is noted with the respective credit agency. Although these inquiries will remain on the report for approximately one year, providers will be primarily concerned with the number of inquiries over the last 6 months. Providers do become concerned if there are more than 10 inquiries during that time. They interpret this as an indication that you are badly in need of credit, and thereby consider you high risk. As a result, they will be less likely to grant you the credit card you are applying for. It is therefore important that you do not apply for an excessive amount of credit cards unless absolutely necessary.
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Why do providers put so much importance on a good credit history?
When issuing you with a credit card, providers give you credit. They take this risk based on your ability to repay that money. Your credit history shows how you have repaid loans in the past. This is taken as an indication of how you will repay loans in the future. If you have a good credit history you are considered low risk. A good credit history can help you get more than credit card privileges. It can also help get loans for those bigger life purchases such as a car or a house. A good credit history speaks well for you. A poor credit history can be improved over time and people have opportunities to make that happen.
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I've had credit problems. Can I still qualify for a credit card?
If you are trying to re-establish credit, it is likely that you will be issued with a 'secured' card, which means that your credit agreement may have to be guaranteed or "secured" with a cash deposit up front. This deposit guarantees you will repay money borrowed using your credit card. The limit on the card is usually the same as the guaranteed deposit.

Otherwise, you may be issued an 'unsecured' card - where no money guarantee is required. However, the card charges may be higher because you are considered a higher risk. Once a good credit history has been established you will qualify for more credit card privileges.
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How much do they cost?
The cost can vary, depending on whether the card provider charges an annual fee, the interest rate charged for borrowing, the interest-free period offered, etc. Additional charges can include those for cash withdrawals, late/returned payments, and exceeding your credit limit.
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How are interest charges calculated?
How interest is calculated is important and decides how much you're charged on your unpaid account balances. There are 3 ways to decide what your unpaid account balances are:
Average Daily Balance (ADB)
Adjusted Balance (AB)
Previous Balance (PB)
The ADB is each day's balance added up for the month and divided by the number of days in a billing cycle. This is the most common way to calculate your balance and proves the most costly to you. If you don't pay your bill in full, the interest is charged from the day a charge is billed to your account.

The AB is the balance that remains after adjusting for payments and credits posted during the billing cycle. This is the least costly method to you.

The PB is the outstanding balance at the end of the previous month. This is less costly to you than the ADB but more costly than the AB.
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What does 'grace' or 'interest free' period mean?
This is the number of days of interest-free credit. You are not charged interest on your account balance for a specific number of days. The number of days can vary from about 20 to 56.
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How should I pay the bill?
You can pay your bill in many ways - by direct debit, for example. Be careful, though, as there may be a charge for some methods. Your payment might also be delayed for some reason which can result in charges if it's late. As a general rule, you should try and pay your bill in full and by the monthly due date.
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Must I pay the full bill each month?
No, you do not have to pay the full bill, but the majority of card providers will require a minimum payment of approximately 3-5% of the outstanding balance on your account. The less you pay off your bill, the more interest you will be charged. If you do not wish to pay unnecessary interest charges, pay your bill in full and on time every month.
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How can I make sure I never miss paying my bill on time?
Set up a direct debit to ensure that the monthly payment is made automatically. It is worth considering this payment option because if you miss the deadline, the interest may be backdated to the date of purchase.
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What will happen if I can't afford to pay the outstanding balance?
Contact the provider to discuss your predicament. They may recommend an alternative solution as it is in their interest to have the problem solved. Alternatively, you could discuss this with a voluntary organisation that provides free advice and may help you manage your debts.
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What is a balance transfer?
If you already have a credit card and you apply for a new one, you can transfer your existing balance on the previous card to the new one. The new credit card provider will assume the outstanding debt that you owe on the previous card by paying off the credit card provider and then billing you for it.
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What is Payment Protection?
Payment Protection is insurance that will protect you in the event you are unable to make payments under qualified circumstances.
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What is an affinity card?
An affinity card is a credit card that is linked to a particular charity. When a card is issued to you, a donation is made to the affiliated charity, and a small percentage will be donated for every transaction made on the card.
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What is a secured card?
Secured cards require you to make a cash deposit up front. The limit on the card is usually related to the amount of the bank deposit. The bank has the right to take money from your deposit if you do not pay your credit card bill.
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What is a guaranteed card?
A guaranteed card is the same as a secured card.
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What is an unsecured card?
You probably won't hear this term often because it is the norm. A normal credit card is unsecured. The card provider cannot take specific assets of yours in the event you do not pay your bill. Your card provider would have to sue you to collect the debt.
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What is a debit card?
The amount you spend using a debit card is immediately deducted from your current account. Your banking institution issues you with a debit card. Debit cards offer less protection than credit cards in the event of a billing dispute. In addition, if your debit card is stolen, it is possible that your debit card account could be emptied.
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Is a credit card the same as a charge card?
No. Like a credit card, a charge card allows you to charge a purchase and pay for it later. But, a credit card offers a revolving line of credit. This means you don't have to pay off the total loan - as long as you make a minimum monthly payment. With a charge card, however, everything you spend on the card must be paid in full each month. Charge cards often incur an annual fee because you don't pay interest on purchases. But, they tend to offer very competitive reward programmes in exchange for the higher fee. An example of a charge card is American Express or Diner's Club.
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Do all cards offer travel rewards?
No. Only a travel card offers the opportunity to accumulate travel points for purchases made with a card. If you want a card that offers travel rewards, you should apply for a card that is associated with an airline or travel program you're interested in.

A travel card usually has an annual fee, which can pay for itself if you earn enough travel rewards. Make sure you use the card for purchases that make good sense, and not just to earn travel benefits.
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I thought ATM cards had PIN numbers. Why do credit cards have them?
A PIN is a numerical password that goes with your credit card. If you have a PIN, you can get a cash advance at an ATM displaying the symbol of the credit card network your card is with. You can also get a cash advance in another country and in the local currency.
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Where can I withdraw money using my credit card?
Once you have a PIN number, you can use your credit card to withdraw money at most cash machines in hundreds of countries around the world. Your credit card network will be identified on the cash machines that accept your card.
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Can I get cash on my credit card?
Yes. For this service you pay a cash handling fee and there's no interest-free period.
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Why am I charged more interest when I use my credit card to get cash?
Credit card networks don't always charge higher interest rates on cash advances. In fact, most don't. They do charge a cash handling fee, which is usually a minimum charge of £2.00 or 1.5% of the cash amount you withdraw. Interest charges on cash advances, however, accrue from the moment you withdraw the cash. When using your card normally, interest is often charged only if you fail to pay off your full account balance on time.
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Are credit cards cheap to use when abroad?
Credit cards generally work out cheaper to use abroad than changing to foreign currency or using travellers cheques.
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How can I be sure that I make the right choice?
Our unique selection process, guides you through the decision-making process and provides credit cards to match your requirements. For example, you will be asked for your preferences relative to different credit card features, such as APR, Payment Brand and Reward Programmes. You will then evaluate a series of hypothetical products and make trade-offs between different card features. After comparing these features, you will be presented with a list of ten suitable credit cards, based on your preferences.

Some general guidelines: If you pay your bill in full each month, then a card with a long interest free period and no annual fee may well be the best choice. For ongoing borrowing, a card with lower interest charges and shorter interest free time may be more suitable. If you go abroad or travel frequently, then consider cards with automated bill payment methods such as direct debit. Ensure that what is on offer meets your needs - a benefit is only a benefit if you make use of it.
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Are credit cards safe?
Yes. Credit cards are a safe, convenient way to buy things in stores, over the telephone or on the Internet with a reputable merchant. And, if your card is ever lost or stolen, a phone call to the card provider cancels the card and has it replaced. Once you report the loss, you will not be held responsible for any unauthorised charges. Remember, for your protection, always:

Sign and activate a new credit card immediately
Save your credit card sales slip to check against your monthly statements
See that you get your card back after every purchase and carry it in the same secure place
Tear up the sales slips if and when you throw them away
Check your billing statement for accuracy each month
Check the Terms and Conditions of any cards you apply for.
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Is it safe to give out my credit card number when buying goods or services by phone or on the Internet?
Make sure that your reputable online retailer like Wise Money uses a "Secure Socket Layer" or SSL that encrypts your personal details Most retailers and service providers are genuine and allow purchases to be made safely and securely. Problems may arise if an unauthorised person accesses your name, card number and card expiry date. They could use these details to carry out a transaction over the phone or on the Internet.

To limit access to these details you should use a telephone land line when ordering by phone. Business conducted using cordless or cellular phones is easier to intercept.

As a security measure, most card providers check that your purchases are delivered to your billing address. If an unusually high number of purchases are being carried out using your card, the card may be deactivated or you may be contacted.

The credit card details you give over the phone are not enough to enable an unauthorised person to make a counterfeit card. The card itself must be presented to buy in shops, restaurants etc. and to get a cash advance from an ATM.
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Do I get proper consumer protection if I use a credit card?
Credit card providers are responsible, along with the supplier of goods or services you purchase, for problems with certain goods paid for by credit card. This applies if the cash price of the item is between £100 and £30,000 and if the total credit value is less than £25,000. If you use your credit card when buying items in this range you can benefit from this consumer protection. If someone you purchase from fails to compensate you, you can claim against your card provider.
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If I have a problem with my credit card whom should I contact?
In all cases you should contact your credit card provider. If your card is lost or stolen, telephone the provider immediately. If you have a billing query, you should contact your card provider. It is your right to dispute a purchase or service which appears on your bill and which you did not make. If you wish to renew your card, you should contact your card provider. It only takes a few days to order a new card over the telephone and to receive it by post.
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What if I lose my card?
Telephone the provider immediately. They will 'stop' the card and issue a replacement. So it's important to keep a note of the telephone number and card number separate from the card. Don't, under any circumstances, keep a note of the PIN (personal identification number) with the card or anywhere else. Memorise it. You can register your cards with a card protection company for a fee and with one call, they will deal with the cancellation and replacement on your behalf. Some providers also offer insurance against loss and misuse.
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How do I know where to find your website again?
It's easy to get lost on the Web. To avoid Web disorientation, make frequent use of your browser's bookmarking feature. This feature allows you to mark the website you are navigating so you can access it again at a later date without having to memorise it's location.

To bookmark a web page in Netscape browser, simply select Bookmarks from the menu bar at the top of the page and click on the 'Add Bookmark' option. This will save the location of the site you are navigating. To access this website at a later date, select Bookmarks from the menu bar and browse through your list of bookmarked sites to select the appropriate one. Once selected you will automatically be navigated to that page.

To bookmark a web page in Internet Explorer, simply select Favourites from the menu bar at the top of the page and click on the 'Add to Favourites' option. This will save the location of the site you are navigating. To access this website at a later date, select Favourites from the menu bar and browse through your list of bookmarked sites to select the appropriate one. Once selected you will automatically be navigated to that page.
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What is a cookie?
A cookie is a piece of information sent to your PC when you access a website. It stores information about you that should save you time when filling in forms. For more information please go to the Cookie Central site at http://www.cookiecentral.com for more information.
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Please just click here now for all of your credit card and unsecured loans needs credit card calculator

Loans Calculators Blog- loans rates blog for news about interest rates- unsecured and secured loans, mortgages, remortgages and refinancing including home loans, equity release and consolidate debt loans.

Labels: consolidate debt loans, credit crunch, home loans, UK loans rates, US loans rates

# posted by Dr Search- Principal Consultant at the Search Clinic @ 8:30 AM 0 comments links to this post

UK Cash Credit Cards facility with no checks!

How your account works: Your salary and other income can be paid into your billing account. Your Account Manager will set aside the money needed in this account for your regular bills and payments.

You can choose to transfer any remaining balance onto your cardone Prepaid MasterCard card which you can use to shop or withdraw money.

Not only can you pay for your weekly shop, you can withdraw cash at ATM machines worldwide, shop online or even over the phone.

Manage your account securely online, by phone and by text

	Quick and easy to apply with no credit checks
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	We'll give you your own Prepaid MasterCard® card so you can control your spending

We'll give you all this for just £12.50 per month, plus a one off account opening fee of just £30

Please apply for your cash credit cards here now!

A unique banking facility that's open to everyone*, irrespective of your current situation or past credit history. There are no credit checks! We'll help you manage your money so you can keep track of your payments or standing orders. Even if you can't pay an item, we won't charge you a bounced payment fee, but we will let you know in good time. We'll ensure all your bills are paid on time.

A prepaid card looks just like any normal credit or debit card, with a card number, signature strip and chip. However, it does not provide you with a line of credit. You can't borrow money with a Prepaid card – you can only spend the money you have loaded onto it.

The Prepaid MasterCard card works in a similar way to a Pay As You Go mobile top up card. If you transfer £100 to the card from your Billing Account, you can only spend £100. The advantage is that this card comes with all the convenience of a debit card. You can spend within your means and you cannot go accidently overdrawn. Using the cardone Prepaid card could help you control your money.

Taking it one step further- Why not request a second Prepaid card that is linked to the same cardonebanking account? This is ideal for a member of your family or partner and could help to keep spending to a set monthly allowance.

Please apply HERE NOW!

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# posted by Dr Search- Principal Consultant at the Search Clinic @ 8:13 AM 0 comments links to this post

Credit cards you guide to unsecured loans in plain english

What exactly is a credit card?
How do credit cards work?
Do all credit cards offer the same service?
How do I get a credit card?
Am I obligated to accept the offer if I apply?
What if my application is rejected?
Are there any credit card traps?
How is my credit limit determined?
How am I judged when applying for a credit card?
How do I check my credit rating?
Does applying for a credit card affect my credit status?
Why do providers put so much importance on a good credit history?
I've had credit problems. Can I still qualify for a credit card?
How much do they cost?
How are interest charges calculated?
What does 'grace' or 'interest free' period mean?
How should I pay the bill?
Must I pay the full bill each month?
How can I make sure I never miss paying my bill on time?
What will happen if I can't afford to pay the outstanding balance?
What is a balance transfer?
What is Payment Protection?
What is an affinity card?
What is a secured card?
What is a guaranteed card?
What is an unsecured card?
What is a debit card?
Is a credit card the same as a charge card?
Do all cards offer travel rewards?
I thought ATM cards had PIN numbers. Why do credit cards have them?
Where can I withdraw money using my credit card?
Can I get cash on my credit card?
Why am I charged more interest when I use my credit card to get cash?
Are credit cards cheap to use when abroad?
How can I be sure that I make the right choice?
Are credit cards safe?
Is it safe to give out my credit card number when buying goods or services by phone or on the Internet?
Do I get proper consumer protection if I use a credit card?
If I have a problem with my credit card whom should I contact?
What if I lose my card?
How do I know where to find your website again?
What is a cookie?

Please just click here now for all of your credit card and unsecured loans needs credit card calculator

What exactly is a credit card?
A credit card represents a loan agreement where you are offered credit, providing you pay off a minimum amount each month. You can charge purchases up to the amount of your credit limit and pay for them later.
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