Friday, February 05, 2010
UK personal insolvency rates hit record high
The figures from the Insolvency Service marked the depth of the recession, with 35,574 people declared insolvent in the last three months of the year.
That was a rise of 25% on the same period a year earlier.
Over 2009 as a whole, there were 134,142 people declared insolvent in England and Wales. This was up 26% compared with 2008, and higher than the previous record - in 2006 - of 107,288. Records began in 1960.
However, the number of personal insolvencies only crept up by 332 in the final three months of the year, compared with the previous three months.
The quarterly total was made up of 17,007 bankruptcies - down 5.5% on the same quarter of the previous year, 13,219 Individual Voluntary Arrangements (IVAs) - up 26.3% on the corresponding quarter of the previous year, and 5,348 Debt Relief Orders (DROs) - which were introduced in April.
These DROs allow people with debts of less than £15,000 and relatively few assets to write off these debts without a full-blown bankruptcy.
Record low interest rates would have staved off insolvencies for some people, but long-term unemployment would make it difficult for others to avoid the situation.
IVAs could also have risen as people cutting hours instead of being made redundant had some funds to pay back debts instead of going bankrupt.
Many experts have suggested that there will be more pain to come despite the UK coming out of recession.
Compared with the last recession in the early 1990s, the latest figures show a very different picture.
The number of individual insolvencies has shot up in the past decade, and now far outstrip the numbers seen in 1992 and 1993 of about 37,000 each year, although it is easier now to be declared bankrupt.
Experts said this was because the amount of credit built up by individuals - especially on plastic - mushroomed in the last decade. Since 1993, the amount of personal debt in the UK - including mortgages - has risen from £398bn to £1.46 trillion.
IVAs were also in their infancy in 1992-3.
This means that 0.3% of the adult population was declared insolvent in 2009, a far higher rate than the 0.1% recorded in 1992 and 1993.
But the number of companies being wound up, via various forms of liquidation, still falls far short of those recorded in 1992.
Then, 24,000 companies were wound up, 2.6% of all companies in existence.
The current liquidation rate, which has increased in the past two years, is still less than 1%.
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, sub prime loans
Thursday, February 04, 2010
Debt advice service can't cope with leap in demand
MPs described the Government's approach to advising people in debt as a "triumph of bureaucracy over practicality" and urged it to "shake up" its strategy to meet the increasing demand for help in the current economic climate.
The Public Accounts Committee said the Department for Business, Innovation and Skills' approach to debt advice was "unnecessarily complex", with more than 50 different projects and a number of funding streams.
Consumers owed £1.46 trillion in debt at the end of last year, with personal borrowing representing 160pc of household annual pre-tax income. The recession has caused demand for debt advice to soar, with research suggesting around one in 10 people are struggling to keep up with their borrowings.
But the Government's free face-to-face service struggled to cope with the 28pc rise in the number of people contacting it during the year to July 2009, leading to a quarter of agencies either turning consumers away or forcing them to wait for more than a month for help.
Richard Bacon, a member of the Public Accounts Committee, said: "At present, the Government is not always using the most cost-effective means of reaching people in need of help with their debts. It costs an average of £265 to provide face-to-face debt advice, but telephone advice costs just £51 and internet advice is cheaper still."
He said one in four people who saw a debt adviser face to face said they would actually have preferred to have been given advice over the telephone or through the internet.
He said: "The Department for Business, Innovation and Skills needs to use the money it deploys more effectively in order to address the gap between the demand for debt advice and the Department's current capacity to provide 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: consolidate debt loans, home loans, sub prime loans
Monday, February 01, 2010
UK loans interest rates hit a 9 year peak
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.
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, sub prime loans, UK loans rates
Friday, January 29, 2010
Britain may be out of recession at last – but are you?
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.
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, sub prime loans, UK loans rates, uk recession
Thursday, January 28, 2010
Office of Fair Trading (OFT) offers debt case guidance
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.
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.
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, sub prime loans
Monday, January 25, 2010
Concern over pre paid card costs
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.
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, sub prime loans
Wednesday, January 20, 2010
Debit card users could have same protection as UK credit cards
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.
Labels: credit crunch, Loan calculator, loans, sub prime loans
Friday, January 15, 2010
Illegal UK loans sharks profit from 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.
Labels: consolidate debt loans, credit crunch, home loans, refinancing rates, sub prime loans
Thursday, January 14, 2010
Inaccurate data files restricts borrowers access to credit
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.
Labels: Aussie loans rates, credit crunch, home loans, Loan calculator, sub prime loans, UK loans rates
Wednesday, January 13, 2010
Credit card borrowing costs are highest since 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.
Labels: credit crunch, recession, sub prime loans
Monday, January 11, 2010
Sub prime lender may be about to re enter loans market
Rumour has it that management at the group met with bankers and lawyers last week to discuss the resumption of 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.
Labels: consolidate debt loans, credit crunch, home loans, Loan calculator, sub prime loans
Wednesday, January 06, 2010
Beware credit card quick fixes
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.
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.
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.
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.
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, Loan calculator, loans, loans rates, sub prime loans, UK loans rates
Tuesday, January 05, 2010
Beware quick fix loans can be expensive
Short term loan firms will be expecting a bumper month as the post Christmas debt blues take their toll.
However, relying on this type of service on a regular basis can be a very dangerous way of borrowing.
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.
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.
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, Loan calculator, loans, sub prime loans
Thursday, December 24, 2009
Cost of UK loans close to Italy debt interest rates
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”.
Labels: consolidate debt loans, credit crunch, interest rates, labour liars, refinancing rates, sub prime loans, UK loans rates
Tuesday, December 22, 2009
MPs review credit rating systems
The report by the Treasury Committee failed to give any strong indication as to whether any changes should be made in the market.
Consumer groups argue that multiple searches affect the rates that people might be charged. But providers said information was shared between lenders to stop fraud.
The committee heard evidence in late October that shopping around for loans could affect people's credit ratings. This meant some missed out on credit or were put off shopping around.
However, the committee reported that it had not been given "overwhelming evidence that it is a major source of direct consumer detriment".
But it had also not been presented with "unequivocal evidence" that credit searches were essential for loan providers.
The committee called on the Office of Fair Trading to investigate the market, and for the Information Commissioner to look into whether the £2 fee charged to people who wanted to access their credit file was reasonable.
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, home loans, Loan calculator, loans, sub prime loans
Monday, December 21, 2009
iPhone apps to help you save money
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.
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.
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.
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, sub prime loans
Friday, December 18, 2009
Students loans let down by new labour spin
As Student loans were meant to linked to inflation, and this principle is not been followed, those students who took the loan out after 1998 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.
It is worth noting that by applying deflationary rates to the balances of Student Loans, students taking out new loans would see the balances automatically reduced and the tax payer would have to fund this.
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, Loan calculator, sub prime loans, UK loans rates
Wednesday, December 09, 2009
Half of borrowers rely on high cost loans to survive
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.”
Labels: credit crunch, loans rates, recession, sub prime loans, UK loans rates
Tuesday, December 08, 2009
Students disappointed by broken loans principle
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.
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.
Labels: consolidate debt loans, credit crunch, loans, sub prime loans
Monday, December 07, 2009
Loans comparison websites can be misleading
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.
Labels: credit crunch, Loan calculator, loans, loans rates, sub prime loans, UK loans rates
Friday, December 04, 2009
Lenders warned not to mislead customers over debts
The regulator also says many debtors have, in turn, been misled about their ability to escape their debts.
The OFT's comments are part of an intervention in a series of High Court test cases about the enforceability of debts under the Consumer Credit Act.
The outcome could affect thousands of potential courts cases.
The OFT has supplied its draft guidance on part of the Consumer Credit Act (CCA) to Judge Waksman, who is hearing the cases in Manchester.
"The OFT's decision to prepare guidance at this time has primarily resulted from our concern that debtors are being misled as to the meaning and interpretation of sections 77-79 [of the Act] in particular," the OFT said in a letter to the judge.
"And on the other hand concern that some creditors appear not to understand the nature and extent of their obligations under these sections," it added.
The 12 test cases at the High Court in Manchester are aimed at settling a number of contentious issues about the interpretation of the law.
The general position is that lenders who wish to chase defaulting borrowers for the repayment of their loans have to comply with a number of obligations.
One of them is that under sections 77-79 of the Act they should supply a "true copy" of the original signed loan agreement within 12 days of the borrower asking for it. If they do not then the debt is unenforceable until such time as the copy can be provided.
"Unfortunately, consumers have often been given an exaggerated expectation of what the creditor or owner must do in order to comply with an information request, as a result of misleading claims by claims management companies and inaccurate information on the internet," the OFT's draft guidance says.
"As a result, numerous disputes have been generated over whether a request has properly been made, whether the duties have been complied with and whether as a consequence the agreement can be enforced," the OFT adds.
The OFT's guidance clearly disagrees with some of the arguments that have been put forward by some claims management companies on behalf of their clients.
In particular, the regulator points out that it is perfectly legal and proper for a bank that has lost the original loan agreement, or whose copy is illegible, to supply an accurate "reconstituted" version instead, to show that the agreement did in fact include the information specified by the Act.
"It is important to remember that the purpose of these sections is to provide information to consumers, not to provide a method for consumers to avoid paying their debts," the OFT says.
But the OFT goes on to advise that lenders would be acting unfairly, and potentially in breach of their consumer credit licenses, if they misled borrowers by:
• hiding or disguising the fact that there was never a proper signed agreement in the first place
• providing only a copy of the current terms and conditions, not the original ones
• confusing the borrower as to who they should send an information request after selling the debt to a debt collection company
• failing to preserve data so the borrower cannot be given an up to date statement of account.
A recent High Court case, between Philip McGuffick and the Royal Bank of Scotland, established that even if a debt is temporarily unenforceable, the lender can still mark a customer's record with a credit reference agency as being in default, because the debt itself has not been extinguished.
The OFT agrees with this, but its draft guidance goes against the grain of other conclusions of that case.
The judge said it was legal for lenders to take other steps to get their money back, such as demanding repayment of the loan, issuing a default notice, threatening legal action, and even starting legal proceedings.
But the OFT said it might take a dim view of these tactics.
"For the purposes of considering whether a company is fit to hold a consumer credit licence, the OFT can take into account any practices which we consider to be oppressive, misleading or improper, whether they are unlawful or not," an OFT official said.
The OFT's draft guidance says: "No communications or requests for payment should in any way threaten court action or other enforcement of the debt where the creditor or owner is aware that it cannot and will not be entitled so to enforce the agreement."
"The creditor or owner should make it clear in communications to the debtor that the debt is in fact unenforceable," it adds.
The guidance goes on to warn that: "To mislead debtors into making payment may in certain circumstances amount to an unfair commercial practice under the Consumer Protection from Unfair Trading Regulations 2008."
The OFT has delayed publication of its draft guidance until the outcome of the Manchester High Court hearings, whose judgements are expected to be delivered in January 2010.
Labels: Loan calculator, loans, sub prime loans
Thursday, December 03, 2009
Bank customers prefer bounce payments rather than be overdrawn
Around 46pc of people said they would prefer banks not to process payments if doing so took them into the red or breached their agreed overdraft limit, according to consumer group Which?.
Only 38pc of people said they would prefer banks to honour the payment and charge them.
The research comes after the Supreme Court ruled last week that unauthorised overdraft charges were not subject to regulation by the Office of Fair Trading under unfair contract rules.
The ruling means there is little hope that the millions of people who have paid the charges will be given refunds.
Which? called on the banks to make unauthorised overdrafts an optional service and to make their charges fairer.
Phil Jones, Which? personal finance campaigner, said: "Different people use their current accounts in different ways so banks shouldn't adopt a one size fits all approach to overdraft charges.
Many current account holders are effectively being lent money that they haven't asked for and being charged through the nose for it.
"Such an expensive service shouldn't be forced on people who don't want it as it can easily lead to financial difficulty. We want banks to show they're willing to respond to what their customers want by only making unauthorised overdrafts available to those who ask for them."
Customers who go into unauthorised overdraft or breach their agreed limit can be charged as much as £35 or more for a single bounced payment. Campaigners claim the actual cost to the banks could be as little as £2.50.
The charges generate around £2.6bn of revenue a year for banks and are used to subsidise free banking for other consumers.
But there could be problems with Which?'s idea that payments could be blocked, as certain payments, such as cheques which have been guaranteed with a cheque guarantee card, have to be honoured by banks.
The British Bankers' Association also pointed out that by blocking payments, banks may simply be creating problems down the line for consumers.
For example, if a direct debit payment to a utility company was blocked, the utility company would then take action against the consumer.
Labels: consolidate debt loans, Loan calculator, sub prime loans, UK loans rates
Wednesday, December 02, 2009
500,000 borrowers seek debt advice in three months
The charity said it dealt with 573,000 inquiries from people struggling to keep up with their borrowing during the three months to the end of September, 21pc more than during the same period of the previous year.
Debt problems are now the single biggest topic on which it offers advice and the charity has handled 3.06 million inquiries on the subject since the beginning of the recession in April last year.
Benefits account for the second most common issue on which people need help at 2.71 million, followed by employment and housing problems at 844,000 and 633,000 respectively.
There was a 28pc jump in people contacting the charity because they had fallen behind with their mortgage or a secured loan during the third quarter, compared with the same period of 2008, while there was a 38pc rise in people with fuel debts.
The number of benefit problems the charity dealt with were 21pc higher than a year ago, while employment problems are up by 17pc year-on-year.
The group is urging people to budget carefully over Christmas, to avoid starting 2010 with a debt hangover.
It is distributing leaflets giving people guidance on how to budget for the festive season.
Labels: consolidate debt loans, home loans, Loan calculator, loans, sub prime loans
Monday, November 30, 2009
Record fall in consumer borrowing says Bank of England
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.
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, refinancing rates, sub prime loans
Friday, November 27, 2009
Credit card debts are a major problem in the UK
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.
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.
Labels: consolidate debt loans, credit crunch, home loans, refinancing rates, sub prime loans
Tuesday, November 24, 2009
Credit repairs scams- how to avoid them
It is important that you recognize scams. There are legitimate creditors who do offer to get you out of debt but they would never promise anything in advance. Scams usually promise to clean your debt instantly or very quickly for a fee. They pose as legitimate credit report service that will only take hundreds of your money and vanish. They pose ads on television, radio and the newspaper. They never tell you much and sometimes, they will only advise you to file for bankruptcy after you pay them.
Since there are legitimate companies who do offer to repair your credit, what you can do is watch for the telltale signs that what you are responding to is a fraud. Most fraudulent credit report service will want you to pay their offered services even before they act on it. They would never advise you of your legal rights and if they do, they would omit some important details because they are only doing it for a show. After all, they would like to convince you that they are legitimate.
Once you tell them to "fix my credit score" they would not recommend that you contact a credit bureau directly but they would offer to do it for you. Sometimes, they would suggest that you make up a "new" report by applying for a different Employer Identification Number instead of your Social Security number.
Labels: consolidate debt loans, home loans, loans, sub prime loans
Monday, November 23, 2009
Loans- choosing a debt consolidation loan
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
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.
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.
Labels: consolidate debt loans, credit crunch, home loans, Loan calculator, loans, sub prime loans, UK loans rates
Tuesday, November 17, 2009
Student loans delay- universities have to bail out students
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.
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.
Labels: credit crunch, loans, sub prime loans
Friday, November 13, 2009
Buy to let home loans mortgage market shows signs of recovery
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.
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.
Labels: credit crunch, home loans, Loan calculator, sub prime loans
Wednesday, November 11, 2009
Money worries affects work performance
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.
Labels: credit crunch, home loans, recession, sub prime loans, uk recession
Tuesday, November 03, 2009
10 warning signs of indebtedness
These days, most of us have some form of debt to deal with - whether it's a loan, a credit card, or an overdraft. But the big question is, at what point does that debt become a serious problem?
If you're just about managing financially, you might not think you have a debt problem.
But if your finances are a bit of a mess and if you, even occasionally, struggle to keep up with your debt payments, this could indicate that your debt is a bigger issue than you realise.
Facing up to these problems can be really hard. And it can seem far easier to simply ignore the problem, shove your bills in a cupboard somewhere, and hope it will all go away.
Unfortunately, it doesn't work like that, and the longer you ignore your debt problem, the worse it will get.
So here are the top 10 warning signs that your debts could be spiralling out of control.
1) You're only paying the minimum monthly repayment on your credit cards
Minimum monthly repayments are typically set at ridiculously low levels. This means that if you're only managing to pay this amount, it's going to take you a long time to pay off your credit card debt in full. Not only that, but you'll end up paying far more in interest before you clear your balance.
2) You don't know how much you owe and you don't want to find out
If you've lost track of how much you owe and have no idea how you ended up in debt, you're probably overspending. Losing track of what you're spending where is not a good idea, especially if you're spending large amounts. It indicates you've really got no control over your finances.
3) You're borrowing more to pay off your debts
Borrowing more and getting further into debt to meet your other debt payments is a dangerous path to follow - particularly if you're using payday loans, logbook loans or credit card cheques.
Equally, if you're taking money out on your credit card just to cover monthly payments on other debts, you could find yourself in serious trouble in the future. Find out more in Six dangerous ways to borrow.
4) You're spending more than you earn
If you have no idea what your budget is and you're spending more than you earn each month, or you're not sure whether your salary is covering your expenses, you could be in serious trouble.
5) You use your credit card to pay for everyday spending
If you regularly use your credit card to pay for necessities such as food or petrol and can't afford to clear the balance each month, your debts will continue to build up and put more strain on your finances.
6) You're regularly late paying bills
If you regularly fail to make your bill payments on time, your cheques bounce, or you overspend on your credit card or overdraft, you'll incur extra fees and charges from your bank. This will drive you further into debt and could also damage your credit rating.
7) You don't have any savings
If you're unable to put even a little money aside into a savings account each month because your debts are too high, that's not a good sign. Having said that, it is usually wise to pay off your debts before starting to save - so it's the right strategy, but don't be blase about it: it's a sign that you are struggling.
8) You find it hard to talk about your situation
If you find it difficult to be honest with your friends and family about your debt problems, or you're lying to them about your spending habits, you could be in denial about your debt.
9) You've been rejected for credit
This could be because you've already got too many credit cards - even if you no longer use them - or because you've missed payments in the past. All of this can damage your credit rating. Find out more in What REALLY damages your credit rating.
10) You're constantly worried about your finances
Recent research from talkaboutdebt.co.uk has revealed that 61% of people in serious debt aren't sleeping due to debt stress, and 29% have taken up to six months off work. If your money problems are affecting your working life, leisure time, and how you sleep, it's time to seek help.
Help yourself
If any of the situations outlined above apply to you, you're probably feeling concerned. Debt can have a serious impact on your life, but the important thing to remember is that you don't have to deal with it on your own.
Simply talking about your financial problems with your friends and family can feel like a huge weight has been lifted off your shoulders. What's more, it's a big step in helping you to face up to your debt problem.
Labels: consolidate debt loans, Loan calculator, loans, refinancing rates, sub prime loans
Monday, October 26, 2009
London shares lose gains as lenders suffer
The news hit sentiment toward the sector, and sent shares in the UK nationalised banks to the bottom of the FTSE 100.
Overall, London’s benchmark index fell 48 points to 5,194.25, a loss of 0.9 per cent. Lloyds Banking Group was its biggest single casualty, down 6.3 per cent to 90.2p. Royal Bank of scotland fell 5.1 per cent to 44.7p.
Shares have lost some direction over recent weeks as investors have started to worry that the gains seen since the first part of the year have got ahead of the economic recovery.
Bid activity on the continent helped Cable & Wireless move to the top of the leaderboard.
Cable and Wireless was 3.3 per cent higher at 145.7p, the best single performer on the FTSE 100.
British Airways was lower on news that European regulators were considering forcing the sale of take-off and landing slots should its transatlantic tie-up with American Airlines and Spain’s Iberia go ahead. Shares in BA lost 2.4 per cent to 204.8p.
Shares in McBride topped the FTSE 250 after the maker of own-label branded goods for supermarkets said it had performed ahead of expectations in the first half. The stock rose 10.9 per cent to 221.2p..
As confidence in the prospect for a swift and sustained global economic rebound faltered, mining stocks lost intraday gains. Among them, Kazakhmys was 2.3 per cent weaker at £12.65.
Labels: Loan calculator, loans, sub prime loans
Thursday, October 22, 2009
Bank loans customers face authorised overdraft rate of 365pc
The change means customers with arranged overdrafts of up to £2,500 will be charged at £1 a day and those with arranged overdrafts of more than £2,500 will be hit with a fee of £2 a day.
Customers are being notified of the changes which come into effect on December 6.
Dominic Lindley, Which? personal finance campaigner, said: “This is bad news for any Halifax and Bank of Scotland customers who regularly use their overdraft as it’s effectively a big hike in charges. If you’re overdrawn by £100, a £1 a day charge is equivalent to 365 per cent.
“Anyone who’s unhappy with the new charging structure should vote with their feet by shopping around and switching to a current account that best suits their needs.”
Halifax pointed out that the new charging structure doesn’t have credit or debit interest just a daily fee.
A spokesman for Halifax said: “The vast majority of our customers don’t use their overdraft facility in an average month and those that do only go overdrawn for a few days usually at the end of the month.
“For customers who use their overdraft on a more regular basis we have specifically asked these customers to contact us so we can review their banking needs and ensure they are in the best account for their individual circumstances."
Labels: home loans, loans, loans rates, sub prime loans
Wednesday, October 21, 2009
Spooked investors short US rally
The Dow Jones industrial average ended down 92 points after having risen 78 points earlier in the day to a new high for the year.
The Dow Jones industrial average fell 92.12, or 0.9 per cent, to 9,949.36.
The market reacted well initially to news of record profits for banking giant Wells Fargo and positive earnings for Morgan Stanley after three consecutive quarterly losses, offset by news of a worse-than-expected loss of $1.56 billion for aerospace giant Boeing.
The main indexes were positive for much of the day, but Jon Ogg at 24/7 Wall Street said a downgrade of Wells Fargo from banking analyst Dick Bove appeared to prompt the late reversal in the market.
Britain’s top share index closed 0.3 per cent higher, was also lifted by the forecast-beating results from Morgan Stanley.
The FTSE 100 closed 14.45 points firmer at 5,257.85, after falling as low as 5,174.48 earlier in the day.
Labels: home loans, Loan calculator, Oil, sub prime loans
Wednesday, September 30, 2009
Thousands of rejected loans complaints to be reopened, under FSA plans
Companies responsible for selling more than 40 per cent of single premium payment protection policies with secured and unsecured personal loans have agreed to review their sales and compensate customers who were mis-sold the product.
The Financial Service Authority now wants to target other companies which have mis-sold PPI which they offered alongside credit cards and secured loans.
It wants all of the 185,000 complaints - concerning every type of PPI - rejected by firms during the past five years, to be reopened.
It comes after the regulator said companies had been rejecting 60 per cent of the PPI complaints they had received. Of these, 16 per cent had then gone to the Financial Ombudsman Service where 80 per cent were then upheld in the customer’s favour.
PPI policies are designed to offer peace of mind that repayments will be covered in times of crisis, such as illness or unemployment - but they can add as much as £900 to a £5,000 three year loan.
Many customers find it difficult to cancel the policies once they are taken out and some are even unaware that they have bought the policy alongside their loan.
The FSA said it is giving banks and other lenders a “last chance” and that they should “get their house in order” over claims of mis-selling.
Jon Pain, FSA managing director of retail markets, said: “Consumers should not be pressured or deceived into buying PPI and they are entitled to have a policy properly explained to them.
“It is unacceptable that despite previous warnings about poor sales practices, backed by 22 enforcement cases and significant fines, the PPI sector still needs the FSA to intervene on this.”
Labels: consolidate debt loans, Loan calculator, loans, sub prime loans
Wednesday, September 09, 2009
Greenspan says financial crisis will reoccur
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.
Labels: Aussie loans rates, credit crunch, Greenspan, Loan calculator, recession, sub prime loans, uk recession
Friday, August 28, 2009
Adverse credit loans remortgage and refinance
Rates offered on adverse credit remortgage
Fixed rates: This keeps your interest rate same throughout the mortgage and helps you to preplan your budget. But with this option you cannot enjoy any drop in the interest rates in the future. Variable rates: This is also offered as the standard variable rate and fluctuates with the change in the national rates. This means that your interest rates would not be fixed throughout the loan term and would change every month.
Capped rates: This rate means that your monthly payments would not exceed a limited amount every month however, within this limit the interest rates would vary according to the variable rates.
UK Loans Calculators for a fast online application, decision and payout APPLY NOW please click here now
Why should you opt for these loans
With the help of these loans you can convert your variable interest into fixed rate. You can increase or decrease the term of your loan and also opt for more flexible options for the loan. However, it is important that you review your adverse credit remortgage loan before signing the agreement.
What should you check before signing
Before you apply for these loans check the mortgage rates prevailing in the market and get an idea about the interest rate that would be charged for adverse credit. If you find that the interest rates are low then you can go ahead and apply for the remortgage loan. Besides this keep a track about the other fees that the lender is charging you.
Make sure that you are aware of all the costs related to the adverse credit remortgage loan. It is important that you be careful while taking these loans, as there are many lenders in the market who try and take advantage of such people. Ask about the pre-payment penalties and the rest of the charges like solicitor fees, property appraisal fee etc.
Where to apply? Right Here!
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, home loans, Loan calculator, loans, refinancing rates, sub prime loans
Monday, August 17, 2009
Credit Cards USA
- More than 70 credit cards available from major card issuers, including:
Labels: home loans, Loan calculator, loans, sub prime loans, US loans rates
Thursday, July 30, 2009
IVA Individual Voluntary Arrangement service
Our Individual Voluntary Arrangement (IVA) Service offers you access to Schemes for clients who have debt problems but still have income and wish to avoid bankruptcy.
Below is some further information regarding IVA’s that you may find suitable for you. We have a number of companies on our panel that will deal directly with you to assist them with your debt problems.
For financial help a fast online loans calculator IVA INDIVIDUAL VOLUNTARY ARRANGEMENT APPLY NOW please click here now
| Positives | Negatives |
| Debt free in 5 years | Possible release of home equity |
| Creditor calls and payment demands stopped | Lasts longer than a bankruptcy |
| One single monthly payment | All creditors have to be included |
| Repaired credit rating | There is a minimum level of debt |
| Legally binding | You cannot borrow during arrangement |
| Your job status is unaffected | Lasts for 5 years |
| Interest and charges frozen | You will have to pay back more than bankruptcy |
| Protection from court action | Your credit rating is damaged |
| Companies look at you more ethically than they would for bankruptcy | You must be able to service payment plan |
What is an Insolvency Practitioner?
A voluntary arrangement is literally as it states – An Insolvency Practitioner (IP) organises an arrangement by a person with their creditors for the discharge of their debt. The schemes require the approval of the court and are monitored.
How long is an agreement for?
The agreement with the creditors allows for a reduced payment each month to be made towards the total amount of debt you owe your creditors. After a period of time usually 5 years the debt is then classed as settled.
How much can the process write off?
An agreement can write off up to 65% of your clients debts (subject to your circumstances). Once you have made your final payment all the outstanding debt is legally written off.
What is the eligibility for an agreement?
This depends on your circumstances. Usually the personnel debt must exceed £15,000 and should be with at least 3 creditors. You must have the income to be able to offer a reasonable amount of payment to your creditors.
Can anyone do an agreement ?
Yes, absolutely anyone in the UK can apply.
What kind of debts can I put on my agrrement?
Store cards, catalogues, credit cards, personal loans, overdrafts. All unsecured debts can be considered including guarantees on business overdrafts and personal debts to the VAT and Inland Revenue however these debts may be treated preferentially within the application.
For help and a fast online consolidate loans calculator APPLY NOW please click here now
Labels: consolidate debt loans, Loan calculator, sub prime loans, UK loans rates
Monday, July 27, 2009
Debt Management UK to consolidate your payments
Debt Management UK consolidates all your debts in to one affordable monthly or weekly payment. This is an informal arrangement made between your and your creditors.
Wise Money have providers of finance that may be able to assist you. The finance company will take details of your outstanding credits, income and outgoings, and provide proof to your creditors that they can't afford current repayments.
You will then make one affordable payment to the finance company, which will in turn distribute this to your creditors. Typically, the new payment is half your existing payments, but will depend upon individual circumstances. The company charges an administration service for arranging this for you.
How can this help you?
* It creates lower payments for you.
* Payments are based on your disposable income.
* One payment.
* Less hassle, you pay the company and they forward payments to your creditors.
* Creditors liase with the company not you.
* Client control.
* If your circumstances change for the better or the worse, you may adjust your payments accordingly.
* No need for you to get involved in legal proceedings.
* Unlike an IVA, this is an informal agreement, not involving the courts and it does not require minimum loans levels.
* Does not put your home at risk.
* Unlike a secured consolidation loan, you do not run the risk of having your home repossessed should you not be able to make payments.
For financial help a fast online consolidate loans calculator DEBT MANAGEMENT UK APPLY NOW please click here now
Examples of where credit refinancing fits in...
Total loans amount: £39,000
Was paying: £891/month
Now paying: £396/month
Client has totals outstanding loans of £39,000 with 7 creditors. He was aged 67 with a household income of £1,150 per month (including his own and his wife's pension). He was paying out £891per month. He owns his home, without a mortgage, valued at over £400,000. He was unable to get a mortgage or secured loan due to age and insufficient disposable income. We have reduced his payment to £396, with a view to getting a mortgage or downsizing his home in the future.
Total loans amount: £12,950
Was paying: £350/month
Now paying: £180/month
These clients were repaying all their monthly credit payments until the husband lost his job, halving the household income. A few months later the savings which they had were all gone and so they tried looking at an unsecured loan to reduce monthly payments, not being homeowners they were unable to borrow against their property. Their low income ment that they were unable to get any type of loans and now they were beginning to miss payments. The clients looked at the possibility of an IVA but as the husband would be returning to work, an IVA would effect the client for too long given that the husband may be able to return to work within the year. A credit arrangent was the right solution for them because the payments were flexible and could be increased when they were both working again.
For help and a fast online consolidate loans calculator APPLY NOW please click here now
Even if you’ve got a bad credit history you can still apply for help. A bad credit history should not put you off applying for finance and we have helped many customers who have been turned down in the past by other lenders. Being refused credit or having a bad credit rating is nothing to be ashamed of and we won't judge you either.
A bad credit history is just that, history. So why not fill in our online form today for a free quotation and perhaps we can turn your situation into a positive result.
Finance for tenants, homeowners, and anybody with bad credit or credit difficulties such as CCJs, defaults or mortgage arrears. We even arrange loans for the self-employed and those who have difficulty in proving their income.
For help and a fast online consolidate loans calculator APPLY NOW please click here now
Labels: consolidate debt loans, Loan calculator, loans, sub prime loans
Friday, July 24, 2009
Debt Consolidation UK Loans for bad credit and self employed
Consolidate Debt UK Loans by Wise Money - UK loans calculators and UK mortgage calculators for the self employed, contractors, consultants, company directors, freelancers- people in adverse, poor and bad credit situations, tenants, arrears or court judgments- monthly payments can be consolidated and reduced by up to 70%
For debt consolidation UK loans seekers a fast online consolidate debt loans calculator DEBT CONSOLIDATION UK APPLY NOW please click here now
For UK mortgage holders looking for a fast online mortgage calculator APPLY NOW please click here now
Debt Consolidation UK Loans- if your debts are becoming unmanageable you may be considering a debt consolidation loan. This may mean you will be repaying your loan for a longer term but debt consolidation loans could lower your monthly repayment to a more manageable amount.
Debt consolidation loans can be secured or unsecured: if you wish to borrow a considerable amount of money, or your credit history is poor, or you may just want the lowest possible interest rate, it may be necessary to secure your debt consolidation loan against an asset you own, usually your house. Talk to an Finance adviser to discuss your situation and they will help you decide the best option for your situation.
Borrow £5,000 to £1,000,000
Borrow over 3 to 25 years
Simple, fast and straight forward
Free yourself from unwanted debts
For UK loans seekers looking for a fast online consolidate debt loans calculator APPLY NOW please click here now
Bad Credit History Loans- Even if you’ve got a bad credit history you can still apply for help. A bad credit history should not put you off applying for a loan and we have helped many customers who have been turned down in the past by other lenders.
You may need a loan to provide extra cash, to buy a van, take a short break, or to pay off credit or an overdraft. Whatever you need the finance for we will consider your application.
Being refused credit or having a bad credit rating is nothing to be ashamed of and we won't judge you either.
We may still be able to arrange an unsecured bad credit loan for you even if you've been turned down or refused credit many times.
A bad credit history is just that, history. So why not fill in our online form today for a free unsecured bad credit loan quotation and perhaps we can turn your bad credit history into a positive result.
We specialise in helping those previously refused by other companies and high street lenders. Finance for tenants, homeowners, and anybody with bad credit or credit difficulties such as CCJs, defaults or mortgage arrears.
We even arrange loans for the self-employed and those who have difficulty in proving their income.
No matter what you need, experienced and friendly advisors will guide you every step of the way - so your loan application goes ahead quickly, easily and completely hassle free.
Any purpose loans- If you’re looking for loans for any purpose come and talk to us about your requirements. Whether you’re considering secured or unsecured loans, we will help you find the best loans with the lowest interest rate and the most preferential terms available to suit your individual circumstances.
You may need to arrange a loan for a new car, a well-deserved holiday, home improvements, to pay school or university fees, or to pay off credit cards or an overdraft.
Your loans can be for any purpose and your application will be processed quickly to ensure your loans are granted as soon as possible. Once your loans are granted you are free to spend the money on anything you wish.
Personal loans- If you’re looking for ersonal finance talk to a adviser today to discuss your financing requirements. We work with a range of providers to ensure we can offer you good terms and interest rates on personal finance.
Your personal finance may be for any purpose, from a new vehicler to an overseas trip, whatever you want the additional money for we will try and help. Once your application has been processed, an in-principle decision can be made very quickly. When your application has been approved your money will be made available as soon as possible, and you are free to spend it as you wish.
Please click here now to APPLY NOW online here now
Labels: consolidate debt loans, Loan calculator, sub prime loans, UK loans rates
Thursday, July 23, 2009
Credit cards you guide to unsecured loans in plain english
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
Labels: consolidate debt loans, credit crunch, Loan calculator, loans, sub prime loans
Wednesday, July 15, 2009
Unsecured Personal Loans to your door in just 24 hours!
Unsecured personal loans through Wise Money can be couriered to your door in the UK in just 24 hours! As long as you are employed and you are over 18, you can apply.
£500 - £25,000
Sensible rates
Instant Yes or No
No money laundering documents
3 levels of PPP
Our courier delivers the funds to your door within 24hrs
For UK loans seekers looking for a fast online calculator UNSECURED PERSONAL LOANS APPLY NOW please click here now
Are you suffering with an impaired finance history? Have you been refused credit, or finance, because of problems in the past? If you have, or suspect you have been refused finance because of a bad credit history, we can still help. A bad credit history does not mean that you can’t get an unsecured finance. Every month literally 1000’s of people who have a poor history get granted additional finance by using us.
Being refused or having a poor rating is nothing to be ashamed of and our lenders will not judge you either.
We may still be able to arrange finance for you even if you've been turned down or refused many times.
A poor finance history is just that, history. So why not fill in our online form today for a free quotation and perhaps we can turn your past into a positive result.
What is non secured finance?
A unsettled poor history finance is for people who have had problems in the past, and now have a less than perfect rating. An unsecured finance does not require you to use your property as a guarantee or security for the money either. As the finance is not settled against a property, the finance offers a little more flexibility to the borrower that does not wish to put their home at risk.
Who are non secured finances designed for?
Poor history finances are, in the first instance, best suited to those with a poor history who do not wish to secure the finance against their property. In the second instance, unsettled finance is often the only option for people or tenants who suffer with an impaired history and have no property to balance the finance against.
Who can apply for finance?
The simple answer is anybody can apply for finance, however in reality before an application can be processed your age and employment status are taken into consideration.
As long as you are employed and you are over 18, you can apply. Please contact us today for a free no obligation quote.
Please click here now to APPLY NOW online here now
Life is difficult enough- escpecially during these credit crunch times. It is our intention to try and save you time, worry and money by finding you the best value, unbiased financial services. Deep Throat's adage during the Watergate crisis to the Washington Post was to follow the finance to uncover the truth. This is a maxim we endeavour to copy without any fuss or hassle as we try to offer the best value impartial finances for you. As long as you are employed and you are over 18, you can apply. Please contact us today for a free no obligation quote!
Labels: loans, loans rates, sub prime loans, UK loans rates
Friday, July 10, 2009
Tenant Loans- delivered to your UK door in 24 hours!
Tenant Loans. If you are a council tenant, private renter or part of a housing association you may need a tenant loan. Tenant loans are specifically designed for people who do not own their own property.
Our lenders provide more tenant credits than any other broker in the UK. Whatever your circumstances, even if you have bad credit, defaults or arrears, we can still help you get the finance that you require.
Tenant loans are the best option for all council tenants, most private renters and for people living with their parents. As long as you are in full time employment you are eligible for rental finance. Please contact us today to arrange a fast finance application with credit for any purpose.
* Available to all types of tenant
* Borrow any loan amount between £250 and £15,000
* Variable interest rates depending on your circumstances
For UK loans seekers looking for a fast online calculator TENANT LOANS please click here now
Our lenders arrange unsecured credit and finance, whatever your credit history. We arrange credit for anybody, even those knocked back by high street lenders or suffering with bad credit problems such as CCJs, defaults or mortgage arrears.
Are you suffering with an impaired finance history? Have you been refused credit, or finance, because of problems in the past? If you have, or suspect you have been refused finance because of a bad credit history, we can still help. A bad credit history does not mean that you can’t get an unsecured finance. Every month literally 1000’s of people who have a poor history get granted additional finance by using us.
Being refused or having a poor rating is nothing to be ashamed of and our lenders will not judge you either.
We may still be able to arrange finance for you even if you've been turned down or refused many times.
A poor finance history is just that, history. So why not fill in our online form today for a free quotation and perhaps we can turn your past into a positive result.
What is non secured finance?
A unsettled poor history finance is for people who have had problems in the past, and now have a less than perfect rating. An unsecured finance does not require you to use your property as a guarantee or security for the money either. As the finance is not settled against a property, the finance offers a little more flexibility to the borrower that does not wish to put their home at risk.
Who are non secured finances designed for?
Poor history finances are, in the first instance, best suited to those with a poor history who do not wish to secure the finance against their property. In the second instance, unsettled finance is often the only option for people or renters who suffer with an impaired history and have no property to balance the finance against.
Who can apply for finance?
The simple answer is anybody can apply for finance, however in reality before an application can be processed your age and employment status are taken into consideration.
As long as you are employed and you are over 18, you can apply. Please contact us today for a free no obligation quote.
Please click here now to APPLY NOW online here now
Life is difficult enough- escpecially during these credit crunch times. It is our intention to try and save you time, worry and money by finding you the best value, unbiased financial services. Deep Throat's adage during the Watergate crisis to the Washington Post was to follow the finance to uncover the truth. This is a maxim we endeavour to copy without any fuss or hassle as we try to offer the best value impartial finances for you. As long as you are employed and you are over 18, you can apply. Please contact us today for a free no obligation quote!
Labels: consolidate debt loans, Loan calculator, loans, sub prime loans
Tuesday, July 07, 2009
Personal Loans Calculators in the UK
Personal Loans Calculator -You may want your loan for major home improvement work, a holiday, to pay school or university fees, or to provide financial support for your children.
Whatever you need to finance the extra money for we will be happy to listen.
Your loan can be for any purpose and once we have received your completed form your application will be processed quickly to ensure your finance is granted as soon as possible. Once your finance is granted you are free to spend your money on anything you wish.
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Being refused credit or having a bad credit rating is nothing to be ashamed of and we won't judge you either.
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Labels: home loans, Loan calculator, loans, sub prime loans, UK loans rates
Wednesday, June 10, 2009
Banks repay $68bn debt loans
Ten bailed out US banks have been cleared to pay back a combined $68 billion (£41 billion) of government aid in a move greeted by investors as a sign that stability is returning to the sector.
The Treasury said that it had told ten institutions that they had raised enough new capital to enable them to repay loans made under the Troubled Asset Relief Program (Tarp).
Several banks, including JP Morgan Chase, Capital One Financial, Morgan Stanley and BB&T Corporation, immediately announced that they would take up the offer.
JPMorgan said that it would repay in full a $25 billion investment along with dividends. Jamie Dimon, the group’s chairman and chief executive, said: “Paying back Tarp at this time is the right thing for JPMorgan Chase, and it’s the right thing for our country.”
The others said to have been cleared were Goldman Sachs, Bank of New York Mellon, Northern Trust, State Street, American Express and US Bancorp. Many of the banks had winced at the restrictions accompanying the bailout funds, such as limits on executive pay.
The Treasury said in a statement that the repayments “follow a period in which many banks have successfully raised equity capital from private investors”. Timothy Geithner, the Treasury Secretary, said: “These repayments are an encouraging sign of financial repair but we still have work to do.”
US shares were flat on the news as investors fear that an oversupply of government debt could push interest rates higher. The Dow Jones industrial average inched up by 1.43 points or 0.02 per cent to 8,763.06.
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, interest rates, sub prime loans
Friday, June 05, 2009
Latvian loans rates hit EC banks
The failure of a government bond auction yesterday heightened fears that the tiny Baltic state will have to devalue its currency, the lat, which could have a huge impact on the rest of the region and other EU states.
If the lat, which is pegged to the euro, is devalued, Estonia and Lithuania’s currencies are likely to follow suit.
Sweden would also be affected because large Swedish banks, such as Swedbank and SEB, control 50 per cent of Latvia’s lending market.
Some economists believe that the panic caused by a devaluation in the Baltic States could spread to other weaker members of the EU, such as Romania and Hungary, and even older members such, as the Irish Republic, Greece and Portugal.
This could mean that the stronger economies in the eurozone, such as Germany, would have to bail out their fellow EU countries or risk the break up of the single currency.
Latvia, a recent addition to the EU, was bailed out by the Union and the International Monetary Fund (IMF) in December after its economy was pummelled by the financial crisis.
It has followed a monetary policy of “fixing” its exchange rate and encouraging its citizens to borrow in euros and Swiss francs, which is one of the reasons it is now in so much debt.
However, there are fears that this could lead to more civil unrest in Latvia, where the previous Government was forced to resign in February as rioting erupted in Riga over unemployment and poverty.
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, ECB, euro, IMF, Loan calculator, sub prime loans
Wednesday, May 27, 2009
Loan Calculator warns Britain may suffer a double recession
Robert Shiller, Professor of Economics at Yale University, said that the recent stock market bounce should be treated with caution.
He likened the current sense of optimism to a marital row. “You don't know whether the argument with your wife is really over or not. Is the problem something that your spouse will bring up again, and again?”
The apparent upturn could soon go into reverse, he told The Times, marking a repeat of economic patterns in the 1930s and the 1980s. Such a double-dip slowdown has been nicknamed by economists a “W-shaped” recession, where recovery is so fragile, the country could be plunged into another slowdown as soon as it emerged from the last.
Since March the stock market has rebounded by 27 per cent, raising hopes that the recession may not be as severe and protracted as many economists had feared. Some have interpreted the recent rally as a sign that the banking system - which imploded after Lehman Brothers, the US investment bank, went bust in September - has stabilised and that confidence is returning.
Last week Alistair Darling, the Chancellor, brushed aside doubts that his Budget forecasts had been overoptimistic and predicted that the recession would be over by Christmas. Many economists in the City believe that Britain will stagnate until the end of 2010 and that unemployment will continue to rise well after that.
Speaking to The Times this week, Professor Shiller said: “I was last here [in London] in the fall and there is definitely a sense of optimism now. The Fed [US central bank] and the Bank of England seem to have things under control. Everything seems to be getting better.”
However, he warned that “there is a real possiblity of another recession. We may well see more bad news. It is a real failure of the imagination to think otherwise.”
He said that there were a number of issues that threatened any long-term recovery for the British economy - rising unemployment, mortgage defaults, and another wave of new company failures that “could surprise us yet”.
Professor Shiller also said that the banks were still harbouring large portfolios of troubled assets.
“We all want to lick this problem — there's been a burst of confidence over the last few months, but really it's not based on any news. A lot of people think this recession is coming to an end. But I'm not so sure. A resurgence in confidence may not translate into new jobs. We are still in uncertain times.”
He added: “In 1931 in the US, President Hoover unveiled his recovery plan - there was a huge stock market rally — the market improved but it didn't hold because bad news kept coming in. Increased confidence can be a self-fulfilling prophecy but it doesn't always hold.”
Professor Shiller said, however, that he believed another likely scenario to be one where Britain would face a continuous decline with house prices falling for a number of years, drawing comparisons with the decade of misery in Japan in the 1990s.
The economist became well known when he predicted the timing of the end of the dot-com boom in March 2000, and was one of the first to warn that the US housing market was perilously overvalued and that its collapse would cause devastating reverberations across the world's biggest economy.
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, Loan calculator, sub prime loans, UK loans rates, uk recession
Tuesday, May 26, 2009
Asian shares founder after North Korean nuclear test
Tensions on the Korean Peninsula showed no signs of easing after the UN Security Council criticized North Korea's test of a nuclear bomb as a "clear violation" of international bans. But the country's defiance continued with reports saying it would likely step up its weapons testing by firing short-range missiles this week.
While hurting sentiment in the short term, the standoff was more an excuse to take a breather from the recent rally, analyst said.
Caution ahead of upcoming economic reports in the US, as well as Wall Street and British market holidays Monday, also left investors with few reasons to set a course one way or the other.
Japan's Nikkei 225 stock average fell 19 points, or 0.2pc, to 9,327.82, while Hong Kong's Hang Seng rose 19.91 points, or 0.1pc, to 17,141.73 in an erratic session.
In South Korea, the Kospi was off 2.4pc at 1,367.02. The benchmark dived over 6pc on Monday on news of North Korea's nuclear test before recovering nearly all its losses.
Elsewhere, Shanghai's index lost 0.1pc, Australia's benchmark was up 1.1pc and Taiwan's market dropped 0.8pc.
Both US and British financial markets were closed Monday for holidays. European markets finished little changed on Monday.
With investors eyeing key US economic reports this week, including home sales, big-ticket manufactured goods and consumer confidence, Wall Street futures pointed to a slightly lower open on Tuesday. Dow futures were down 11, or 0.1pc, at 8,249 and S&P futures fell 0.4, or 0.1pc, to 884.50.
Oil prices fell Asia trade ahead of OPEC's meeting this week, with benchmark crude for July delivery trading at $60.93 a barrel, down 74 cents from overnight trade.
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, Oil, sub prime loans, uk recession
Thursday, May 07, 2009
US stress tests of banks a focal point for loan calculator
Rumours and articles abound this morning concerning Bank of America with estimates that the Bank will be ‘asked' to get hold of $34 billion of fresh capital following the stress testing. This is about 3 times the original expectation and raises concerns over the total amount that might need to be raised by the other 9 major banks involved.
Equity markets were subdued with a small drop in the DOW recorded. The original stated purpose of the stress tests was to increase confidence in the US banking system, but the market feels like the end result has been almost exactly the opposite.
The markets have already received indications from the ECB president of a rate cut and the possibility of other measures- however with the reserve bank of Australia holding interest rates at 3% could this lead the ECB into a change in sentiment to hold rates?
The Norges Bank meet today and are expected to continue their rate cutting regime with a reduction by 50 basis points down to 1.50% anticipated.
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, falling interest rates, interest rates, Loan calculator, sub prime loans, US loans rates
Thursday, April 02, 2009
G20 summit- European demands threaten to wreck deal
In a classic show of eve-of-summit brinkmanship, Angela Merkel and Nicolas Sarkozy joined forces to give warning that they would refuse to sign any agreement that did not meet their “red lines” on tax havens, hedge fund regulation, tracing “securitised” assets sold around the world and capping bankers’ remuneration.
They also wanted the “naming and shaming” of tax havens that refused to go along with tougher regulatory rules, which is being opposed by the United States.
In a reminder of former confrontations between America and the countries of Old Europe, Mr Sarkozy suggested that Europe would not take economic direction from the US. He appeared to suggest that America would have to compromise, adding pointedly: “The crisis didn’t spontaneously erupt in Europe, did it?”
The firm stance of Mr Sarkozy and Ms Merkel and the language used in a joint press conference took negotiators by surprise as they prepared to work through the night on the communiqué to be released today.
Although Mr Brown and President Obama appeared confident of an agreement throughout yesterday’s talks in London, it was clear last night that Mr Obama would have to make more concessions if differences were to be smoothed over.
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, G20, Loan calculator, sub prime loans
Tuesday, March 31, 2009
Dunfermline bill leaves state with £600m exposure
Following a deal brokered by the Bank of England and the Treasury over the weekend, labour will transfer £1.6bn of state funds to Nationwide Building Society, which is taking £2.35bn of Dunfermline's deposits and £250m of treasury investments in return for absorbing £1bn of its prime residential mortgages.
The transfer is being made because the assets Nationwide is assuming are £1.6bn less than the liabilities.
However, the cost will be split between the industry-backed deposit protection scheme and the taxpayer. Both the Treasury and the Financial Services Authority refused to reveal how much the Financial Services Compensation Scheme will cover, but insiders said it was "between £1bn and £1.5bn".
In the worst case scenario, that would leave the taxpayer liable for £600m although any final loss is more likely to be in the tens of millions of pounds.
The labour Government's reluctance to detail either the possible exposure or the potential loss drew criticism from the Conservatives. George Osborne, the shadow Chancellor, demanded to know: "What is the maximum possible loss for the taxpayer? What is the maximum exposure?"
Alistair Darling would only say there was "a small residual exposure for the Government".
Although the state is providing Nationwide the £1.6bn in the first instance, the funds will be recovered by running down and selling off the society's remaining assets. A £450m book of social housing mortgages has been placed into a "bridge bank" under the control of the Bank of England that is expected to draw bidders.
However, a further £650m of troubled commercial property loans as well as £150m of toxic self certified mortgages bought from GMAC and Lehman Brothers has been placed with administrators KPMG.
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, sub prime loans, uk recession
Monday, March 23, 2009
AIG bonuses backlash risks inflicting permanent damage on Wall Street
The hot-headed and unfairly retroactive changes could hurt investor confidence, undermine President Barack Obama’s credibility and damage the still valuable US finance sector.
AIG has been especially irresponsible, both with its risk-taking during the credit boom and with its handling of its affairs since. Agreeing to extra bonuses and then paying them to employees of its financial products unit after receiving $170bn-plus in government money – and failing to sufficiently forewarn Congress and others to boot – has rightly riled Americans and their elected representatives.
Plans to tax bonuses at financial institutions that have been bailed out by the US government are the knee-jerk result. The scheme passed on Thursday in the House would result in taxes of 90pc on bonuses at institutions that have received funds from the government; in the Senate, which now has to consider the measures, thinking seems to be 35pc levied on the employer, and an extra 35% on the employee.
The bonus tax idea is bad for a range of reasons that senators should consider calmly, even if the House didn't do so. One is that it changes the rules – again – for recipients of government assistance.
Government initiatives to kick-start clogged financial markets depend on investors and institutions participating. If they think that the rules of the game are going to change continually, they’ll be reluctant.
The tax plans are also retroactive to the beginning of this year. Bankers awarded bonuses for 2008 – and some payouts were both relatively modest and legitimately earned – received them earlier this year, net of prevailing taxes. They may in good faith have spent the cash, invested it or even given it away.
Changing the rules now, and demanding a giant additional tax cheque, really isn’t fair.
Even more importantly, there’s the longer-term impact on the US financial industry. Wall Street’s finest, together with AIG – admittedly a different beast – are now in the doghouse together. But the finance business is in fact one of America’s global strengths.
The planned taxes are just the kind of thing that will give non US firms and non US bankers an edge.
That's just one example of the crossed wires inherent in the latest tax plans. And with so many bigger issues at hand, it's surely the kind of risk to credibility that Congress should make sure it avoids.
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: Barack Obama, credit crunch, Loan calculator, recession, sub prime loans
Monday, March 02, 2009
News already out this morning confirmed that HSBC’s half-year profits fell by 28%.
The problems in the global banking sector seems to be escalating and this is very apparent in eastern Europe as many currencies have fallen to their lowest levels for years over concerns in the banking sector.
On Friday a €24.5bn package was unveiled from multilateral lenders: the World bank, The European Bank for reconstruction and Development and the European Investment Bank. It is hoped that this united front and direct stimulus will help the beleaguered sector to recapitalize and start lending; the Polish Zloty, Czech Koruna and Hungarian Forint bounced higher on the news.
The main focus this week will be on the interest rate announcements from the UK and the ECB.
It is expected that both central banks will cut rates by 50 basis points; this is no surprise for the UK, however it will indicate a realization that the ECB are looking to act more aggressively than previously and this could weaken the euro. In the UK it is expected that plans will be initiated to commence quantitative easing as another measure alongside policy easing.
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, Loan calculator, recession, sub prime loans
Thursday, February 19, 2009
Nationalised banks to add £1.5 trillion to public debt
Britain’s public sector net debt is already a record high, hitting 47.8 per cent of GDP in January, official figures show. This is the highest level of debt recorded since the ONS started recording data in 1993.
The ONS said that it had decided to add the banks to the labour Government's books because "the Government has the ability to control the respective banks’ general corporate policy through the conditions associated with the agreements signed relating to recapitalisation."
Howard Archer, of IHS Global Insight, the economic consultancy, said: "Given the rate at which the UK public finances are deteriorating and new measures are having to be introduced to try to support the financial sector and the economy, it is frankly anyone's guess as to how high the public deficits may go over the next couple of years."
The massive debt will cause problems for the labour Government, which has already seen Northern Rock's debts added to its accounts. Analysts said that it would probably have to revise up its borrowing forecasts in April's budget.
Andrew Goodwin, Senior Economic Adviser to the Ernst & Young ITEM Club, said: "We expect the Chancellor to be forced to make significant upward revisions to his borrowing projections when he presents the Budget."
The public sector showed a surplus on current budget of £8.4 billion in January 2009, compared with a surplus of £15.3 billion in January 2008.
Between April 2008 and January 2009, the public sector recorded a deficit of £42.5 billion. At the same stage of the 2007-08 financial year, a deficit of £7.0 billion had been recorded.
Mr Archer said: "The public finances for January are terrible, coming in even worse than feared. January always sees a surplus on the public finances at is a bumper month for tax receipts.
"Unfortunately though, bumper hardly describes the tax receipts for this January as they have been decimated by sharply contracting economic activity, declining profitability, rising unemployment, reduced bonus payments, December's VAT cut and substantially weakened housing market activity and prices.
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, sub prime loans, UK loans rates, uk recession
Tuesday, February 17, 2009
The Euro finally breaks down through the 1.2700 support
The target going forward is now for a lower rate with the medium term outlook still towards 1.1500. This latest Euro weakness stemmed from renewed apprehension towards the economic outlook for Eastern Europe and a warning released by Moody's overnight that Western European Banks' rating would need to be downgraded as a result.
This provoked a new wave of risk aversion trading this morning in Asia with weakness seen not only in the Euro but also the AUD, NZD and other regional currencies.
The Yen, which has been a safe haven since the demise of the carry trade mentality, didn't benefit either as their own domestic woes appear finally to be catching Japan up (ie the collapse in Japanese economic activity - down nearly 13% y/y, the move to a deficit on trade and rising political risk with the PM's approval rating falling below 10% and the untimely departure of the Finance Minister following his ‘Rome adventure').
No data yesterday combined with the US holiday left us grasping for official comment and the officials didn't disappoint. The usual ECB rhetoric emerged with various members talking in a concerned way about the European economic situation and implying interest rate cuts to come.
The BoE Deputy Governor, Charles Bean, speaking at the National Union of Farmers Conference in Birmingham predicted that there was a 75% chance that the UK economy would contract by more than the 4% rate that was predicted by Mervyn King last week.
This comes amidst rising fears that data is about to show the UK entering a period of deflation. Today's release is expected to show that the RPI year-on-year figure has dropped to, or just below zero (expected to be -0.1%) and the CPI number, although less dramatic, will still show an easing from 3.1% down to 2.9%. This maintains the probability that the Government's target rate of 2% will be reached/breeched in the figures for March.
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, euro, recession, sub prime loans, uk recession
Wednesday, February 04, 2009
Loans rates announcements due soon
There is no doubt Sterling has a lot of in built bad news already in the price and a 0.5 % base rate cut is already priced in some may even argue that 1% is already accounted for.
On the other hand the ECB still stubbornly refuse to move their interest rate down from 2% and tomorrow we expect unchanged. Short term GBP EURO could move lower on the back of the widening interest rate differentials, however the continuing downgrading of Euro Zone growth forecasts can only mean further pressure on the Euro and Sterling could be the main benefactor of this.
In the US the Obama effect looks like it could be running out of steam and the US$ will come under pressure as the Treasury struggles with its exploding balance sheet.
The short term rally we saw in the Australian Dollar has also fizzled out as the market comes to terms with what could be a protracted slowdown down under especially as the price of commodities continues to fall.
And over to Russia the fun continues as the Central Bank desperately tries to hold up a freefalling Rouble, a thankless task and this is also putting pressure on Poland and Hungary as their currencies get drawn into the global risk aversion play and continue to fall.
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, Loan calculator, loans rates, sub prime loans
Wednesday, January 21, 2009
The UK is really getting some bad press
Today we have Jim Rogers, who was co-founder with George Soros of their Quantum Hedge Fund, advising investors to get rid of everything Sterling related (including currency) and invest elsewhere.
Now whether it was as a direct result or whether it was just coincidence who knows but cable went through yesterday continuously making 7 ½ year lows and its value against the Euro also dipped sharply.
Gilt futures hit a 1-month low and yields rose again as concern over the UK's ballooning debt continued to grow. Outlook for the UK is cloudy to say the least and it is very apparent that, by their recent actions, the labour Government would love to draw a line under the ongoing disaster that is the UK Banking system.
This would allow them to concentrate on trying to revive the economy - as evidenced by the content of Mervyn King's speech last night as MPC To Prepare For Unconventional Policy Steps. Such steps to boost broad money, Liquidity, Credit etc
All they need is a brief respite in order to put the plan into action. Sterling is suffering on the delay.
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, sub prime loans, UK loans rates, uk recession
Monday, January 19, 2009
Loans Calculator starts with the positive
The signs initially look good with a determination to do the right thing and do it early. A feel good factor might easily spread very quickly through the country and filter to a stronger Dollar over the coming months.
The assistance to both Banks and economies being pledged by Governments worldwide is also being viewed as positive with expectations that it will directly enhance Corporate earnings which in turn will boost equity markets.
On the downside, the situation in the world's largest financial institutions is still very unclear. Further assistance for Bank of America and a restructuring at Citibank at the end of last week plus the release of the details for the next UK bank bail-out plan, this morning have done little to alleviate concerns in Financial Markets.
The news that RBS was predicting that it had made a £20 billion loss last year and that the UK Government were to become a 70% shareholder in the institution (following the conversion of their holding of preference shares into ordinary shares) spooked the Stock Market early on.
Longer term it is questionable whether the labour Government want to own and run the countries clearing banks but for the time being, they obviously feel the cost of so doing is worth going through.
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, Loan calculator, sub prime loans
Friday, January 09, 2009
UK interest rates cut by half per cent
At the December get together, at which, you will remember , the decision was made to cut rates by 100 basis points but the discussion was centred on whether this was enough. Yesterday, there was no mention of debate as to the magnitude of cut.
This might emerge in the actual minutes to be published on 21st January but for the time being one has to assume that the focus was directed at alternative measures for stimulating the economic revival rather than on the ‘big hammer' of continued interest rate reductions. Makes the 21st release even more important for the market.
Sterling had a good day, the Stock Market was less impressed. Interest rates eased a few basis points but given that the 0.50% cut had been priced in already, the reaction was predictably mooted.
Attention now turns to interest rate decisions to be made next week by the ECB and the week after by the Bank of Canada for differing reasons.
Opinion expressed yesterday in certain papers that the ECB might not cut rates because Trichet had given the market no hint that this was likely to occur now looks pie in the sky. The MPC cut and more importantly, the horrendous data that continues to flow from the Eurozone's major nations, makes a rate cut an absolute necessity.
Indeed, it is likely that no matter what the Central bank does, it will be viewed at too little, too late.
The situation in Canada is different. Next week's Canadian Trade Figures will confirm that there are few countries less well equipped to weather the growing US economic storm than Canada.
There is an urgent requirement for rate cuts however, given that differentials between the US Dollar and the Loonie interest rates have remained constant over the past 12-months (with the CAD weakening) any shift lower in rates will cause the differential to close and thus make the CAD less attractive. How to cut rates without a detrimental effect on the currency ….. difficult.
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, falling interest rates, sub prime loans
Monday, November 03, 2008
Europe on the brink of currency crisis meltdown
Currency pegs are being tested to destruction on the fringes of Europe’s monetary union in a traumatic upheaval that recalls the collapse of the Exchange Rate Mechanism in 1992.
“This is the biggest currency crisis the world has ever seen,” said Neil Mellor, a strategist at Bank of New York Mellon.
Experts fear the mayhem may soon trigger a chain reaction within the eurozone itself. The risk is a surge in capital flight from Austria – the country, as it happens, that set off the global banking collapse of May 1931 when Credit-Anstalt went down – and from a string of Club Med countries that rely on foreign funding to cover huge current account deficits.
The latest data from the Bank for International Settlements shows that Western European banks hold almost all the exposure to the emerging market bubble, now busting with spectacular effect.
They account for three quarters of the total $4.7 trillion £2.96 trillion) in cross-border bank loans to Eastern Europe, Latin America and emerging Asia extended during the global credit boom – a sum that vastly exceeds the scale of both the US sub-prime and Alt-A debacles.
Europe has already had its first foretaste of what this may mean. Iceland’s demise has left them nursing likely losses of $74bn (£47bn). The Germans have lost $22bn.
Stephen Jen, currency chief at Morgan Stanley, says the emerging market crash is a vastly underestimated risk. It threatens to become “the second epicentre of the global financial crisis”, this time unfolding in Europe rather than America.
Austria’s bank exposure to emerging markets is equal to 85pc of GDP – with a heavy concentration in Hungary, Ukraine, and Serbia – all now queuing up (with Belarus) for rescue packages from the International Monetary Fund.
Exposure is 50pc of GDP for Switzerland, 25pc for Sweden, 24pc for the UK, and 23pc for Spain. The US figure is just 4pc. America is the staid old lady in this drama.
Amazingly, Spanish banks alone have lent $316bn to Latin America, almost twice the lending by all US banks combined ($172bn) to what was once the US backyard. Hence the growing doubts about the health of Spain’s financial system – already under stress from its own property crash – as Argentina spirals towards another default, and Brazil’s currency, bonds and stocks all go into freefall.
Broadly speaking, the US and Japan sat out the emerging market credit boom. The lending spree has been a European play – often using dollar balance sheets, adding another ugly twist as global “deleveraging” causes the dollar to rocket. Nowhere has this been more extreme than in the ex-Soviet bloc.
The region has borrowed $1.6 trillion in dollars, euros, and Swiss francs. A few dare-devil homeowners in Hungary and Latvia took out mortgages in Japanese yen. They have just suffered a 40pc rise in their debt since July. Nobody warned them what happens when the Japanese carry trade goes into brutal reverse, as it does when the cycle turns.
The IMF’s experts drafted a report two years ago – Asia 1996 and Eastern Europe 2006 – Déjà vu all over again? – warning that the region exhibited the most dangerous excesses in the world.
Inexplicably, the text was never published, though underground copies circulated. Little was done to cool credit growth, or to halt the fatal reliance on foreign capital. Last week, the silent authors had their moment of vindication as Eastern Europe went haywire.
Hungary stunned the markets by raising rates 3pc to 11.5pc in a last-ditch attempt to defend the forint’s currency peg in the ERM.
It is just blood in the water for hedge funds sharks, eyeing a long line of currency kills. “The economy is not strong enough to take it, so you know it is unsustainable,” said Simon Derrick, currency strategist at the Bank of New York Mellon.
Romania raised its overnight lending to 900pc to stem capital flight, recalling the near-crazed gestures by Scandinavia’s central banks in the final days of the 1992 ERM crisis – political moves that turned the Nordic banking crisis into a disaster.
Russia too is in the eye of the storm, despite its energy wealth – or because of it. The cost of insuring Russian sovereign debt through credit default swaps (CDS) surged to 1,200 basis points last week, higher than Iceland’s debt before Götterdammerung struck Reykjavik.
The markets no longer believe that the spending structure of the Russian state is viable as oil threatens to plunge below $60 a barrel. The foreign debt of the oligarchs ($530bn) has surpassed the country’s foreign reserves. Some $47bn has to be repaid over the next two months.
Traders are paying close attention as contagion moves from the periphery of the eurozone into the core. They are tracking the yield spreads between Italian and German 10-year bonds, the stress barometer of monetary union.
The spreads reached a post-EMU high of 93 last week. Nobody knows where the snapping point is, but anything above 100 would be viewed as a red alarm. The market took careful note on Friday that Portugal’s biggest banks, Millenium, BPI, and Banco Espirito Santo are preparing to take up the state’s emergency credit guarantees.
Hans Redeker, currency chief at BNP Paribas, says there is an imminent danger that East Europe’s currency pegs will be smashed unless the EU authorities wake up to the full gravity of the threat, and that in turn will trigger a dangerous crisis for EMU itself.
“The system is paralysed, and it is starting to look like Black Wednesday in 1992. I’m afraid this is going to have a very deflationary effect on the economy of Western Europe. It is almost guaranteed that euroland money supply is about to implode,” he said.
A grain of comfort for British readers: UK banks have almost no exposure to the ex-Communist bloc, except in Poland – one of the less vulnerable states.
The threat to Britain lies in emerging Asia, where banks have lent $329bn, almost as much as the Americans and Japanese combined. Whether you realise it or not, your pension fund is sunk in Vietnamese bonds and loans to Indian steel magnates. Didn’t they tell you?
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, ECB, IMF, Loan calculator, sub prime loans
Monday, September 24, 2007
US loans markets remain the focus
Indeed, with the global focus still on US growth concerns, it remains difficult to expect the euro to soften over the week ahead even though the euro zone economic releases are likely to be on the soft side.
Until August, the European Central Bank could afford to lean back and let the rising euro do some of the monetary tightening for the ECB, however, the turmoil in financial markets, the heightened uncertainty about the growth outlook and intense political pressure have changed the situation. The current surge in the euro to a new record high is a serious issue for the ECB.
Though ECB president Jean-Claude Trichet has stressed the bank's independence in all economic matters, complaints from politicians have already begun.
Speaking on French television, French President Nicolas Sarkozy continued to criticise the ECB's rate tightening bias and called for increased consultation with politicians on monetary policy.
Elsewhere, the Canadian dollar broke parity against the US dollar, reversing earlier losses stemming from weak Canadian retail sales figures, as oil prices hit another fresh record high.
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 debt consolidation.
Labels: interest rates, Loan calculator, sub prime loans
Wednesday, August 29, 2007
Data not as bad as Loans Calculators had feared
Yesterday, equities were shaky with key indices in Europe all down, alongside falls on Wall Street. Against this backdrop, currency markets are likely to see bouts of volatility as risk appetites ebb and flow.
The latest interest rate developments include Monday’s existing home sales figures for June, which showed inventories of unsold homes at a 16-year high, and a report in yesterday morning's Times that US bank State Street has 22 bln usd of exposure to debt conduits, the off-balance sheet vehicles that have contributed greatly to the uncertainty in financial markets.
Signs that there are more knock-on-effects to come from the credit crisis have previously helped the dollar as risk sentiment waned, but further bad economic news flow is now fuelling speculation the Federal Reserve will cut interest rates to prevent harm to the wider economy.
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 debt consolidation.
Labels: Loan-calculator, sub prime loans
Tuesday, August 28, 2007
Weak US housing data causes high yielding currencies to fall
Investors have become nervous about the off-balance sheet vehicles after Germany's IKB had to tap emergency funding for its conduit last month after it was unable to sell maturing paper in the open market.
The report helped keep the bias to the downside.
Data released yesterday showed that US existing home sales fell 0.2 % in July from June, marking the fifth straight decline and pushing the stock of unsold homes to a 16-year high.
The news revived concerns that the trouble that started in the US subprime market will spill over into the broader economy, and possibly trigger a recession.
Traders are now awaiting the release of US consumer confidence data for August, expected to show a sharp decline given the volatility in the stock and credit markets.
We are forecasting a reading of 104.5 for the month, down from 112.6 in July. Given that this survey is relatively sensitive to labor market conditions, we believe the recent upturn in initial jobless claims weighed heavily on the index this month.
Trichet also seemed to back away from the 'strong vigilance' line of early August by going out of his way not to repeat it.
The loans markets still appears to be a bit shell shocked following the volatility of two weeks ago and while the first preference is to buy back European currencies there is still sufficient uncertainty over whether further adverse news will come from the subprime issues to cause another further sharp rise in the dollar. It was not surprising that Trichet did not commit to any interest rate moves before next week's ECB policy meeting.
Trichet did say that his Aug 2 policy stance, during which he called for 'strong vigilance' to stem inflation, was articulated prior to recent market volatility.
There is still a big question mark, therefore, whether the ECB will hike rates next week or wait until the credit crunch fears have abated somewhat.
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 debt consolidation.
Labels: ECB, new home sales, sub prime loans
Tuesday, August 21, 2007
Loan calculator considers stable interest rates
There is a general lack of conviction in the markets right now, and that will not change until we get to the end of the week, and traders can see whether or not US markets have the resilience to hold in, or whether last week's dent in investor confidence, and the official 10 % correction is something more than that.
Among currencies, the yen as a low-yielding currency has been the main beneficiary of the recent turmoil as a result of the credit crisis as investors rapidly unwound risky carry trades, where money is borrowed in low-yielding currencies in order to invest in higher-yielding assets elsewhere.
Meanwhile, the euro and the pound held onto gains against the dollar garnered on Friday after the Fed discount rate cut, as the US currency had gained support from safe haven flows during the financial turmoil.
The Pound was further buoyed yesterday after figures from the Bank of England revealed an unexpected rise in its broad M4 measure of money supply during July, as well as strong public finances data.
There were also solid mortgage lending figures from the British Bankers Association and the Council of Mortgage Lenders, although these were offset slightly by soft numbers from the Building Societies Association.
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 debt consolidation.
Labels: Loan-calculator, sub prime loans, UK loans rates
Thursday, March 15, 2007
Sub prime lending woes take centre stage
Through the volatility we saw the greenback gain slightly against a handful of majors after a narrower than expected current account deficit. The figures released showed the account shrunk to $195.8 billion against estimates of $204 billion. Improvements were attributed to lower crude oil imports and larger amounts if investment income paid to US investors.
After suffering from the unwinding of carry trades on Tuesday, Sterling was well bid throughout the day yesterday. In main this was the release of UK unemployment and Average earning figures Wednesday morning.
UK unemployment remained steady at 5.5 percent with the claimant count falling by 3800 ( v market expectation 8000), but the deciding factor in this being the 5th consecutive month in the reduction in claimants. Also released at this time was UK Average earnings.
This figure showed an increase in earnings to 4.2 percent, up another 0.2 percent on the previous month and the highest since last July. This figure fuelled speculation of further rate increases.
The Euro found strength ahead of a speech from ECB president Trichet yesterday . In his speech he reaffirmed that current inflationary expectations remained stable even in the light of present volatility. The Euro also found strength in market expectations of a rate increase from the SNB in there benchmark rate.
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 debt consolidation.
Labels: ECB, Loan calculator, sub prime loans
Wednesday, March 14, 2007
Sub prime lending adds to refinance woes
Traders are concerned that the problems in the sub-prime market could spill over into the wider economy and was encouraging investors to unwind further carry trades. In addition to the problems in the sub-prime sector consumer spending fell short of expectations for the month of February.
Headline sales rose just 0.1 percent while sales excluding autos fell 0.1 percent. This is the first drop in sales excluding autos since October 2006. Today we will see the release of the US Q4 current account balance with the median looking for -203.0
During a day in which we saw the renewal of liquidation in many currency pairs the Euro remained fairly stable. Although the German ZEW survey showed a deterioration in analysts sentiment, this figure was less than expected after concerns of an increase in VAT and the recent rate increase.
In Fact, Bundesbank President Weber joined ECB's Lienscher in saying that risks to price stability still remain on the upside and further rate rises may be required.
The trade gap in the UK shrank to its lowest in more than a year, figures showed yesterday. Sterling continued to suffer the most from the unwind of carry trades as risk aversion returns again.
The Nikkei ends 2.92% lower at 16,676.89 booking its 2nd biggest daily percentage fall this year and closing in on 3-mth low as Japanese exporters fall on concerns of a stronger yen and the turmoil in the US lending sector.
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 debt consolidation.
Labels: refinancing rates, sub prime loans, Wall Street
