The credit crunch of almost three year standing is now over and that is now official, and it is to be hoped that the growth in the economy will correspondingly cause a growth in individual economy.
Throughout the previous three years the general apathy about applying for financial products was partly lack of confidence in job security couple with the firm belief that many had that there simply was no availability of loan funds of any kind.
These features and believes all lead to a fall in the number of applicants for all types of loans from car, boat and caravan loans to remortgages, mortgages and secured loans.
The correct facts of the matter was that there was never a shortage of funds but the fact that the public believed there was a lack funds lead to the decline in those applying.
The thought that there no funds made people who wanted a loan, a secured loan., a remortgage, etc. put the consideration of applying for finance on the back burner.
The news that the…
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The credit crunch affected the home loan sectors of remortgages, mortgages and secured homeowner loans to an enormous extent.
Secured loans fell by more than 80% of the level at which they stood at the end of 2006, and these once so popular loans fell to a shadow of their former self.
The real beauty of a secured loan lies in the fact that these secured homeowner loans can be used for any purpose providing the purpose is legal.
Homeowner loans were often used to pay for home improvements and were a good way to do improvements. Home improvement loans when arranged by an actual home improvement company have interest rates of about 25% which is extortionate. When someone wants a loan for home improvements from his own bank he needs to provide at least two estimates for the planned work. With a secured loan he will have cash in hand to do the work without any written proof of the use of the loan being required, and the interest rate will now…
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What is one of the biggest afflictions known to man? You may very well mention that the most awful thing is ill health and you would be right but after health problems, the most dreadful thing is struggling under a mountain of debt.
When ill health strikes life becomes unbearable and so with debts. Being burdened down with debt affects people so badly that life changes dramatically.
Ill health is not something that one would choose of their own accord and neither does anyone intentionally choose to burden himself with debts.
So saying, some illness can be avoided by changing habits, taking more exercise or eating more fruit and vegetable.
We have almost lumped bad health and debt into the same category of human afflictions debt is more avoidable than is ill health.
No one starts off in life by thinking that they want to fall into debt, but they fall into debt nevertheless, and it was preventable.
Debt just sort of creeps up on a person after borrowing too many times over a number of…
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The interest rates of unsecured loans are at one of their most expensive ever with rates considerably higher than in 2001 which may come as a surprise to many as the Bank of England Base Lending Rate is at an historically low rate .
Nine years ago the Base Lending Rate was more than 5% higher than the 0.05% rate of now.
Unsecured loans are therefore at their highest rate in spite of the low base rate now compared to the first few years of this decade.
As well as the interest rates being high, it is also more difficult now than in the past to obtain an unsecured loan although it is a fact that unsecured loans were always only available to individuals with good credit ratings.
Having no form of security, when a person wants an unsecured loan for what ever purpose, he must produce proof as to the reason for the loan, and it is not enough to just write the purpose on the application form.
For a homeowner there is no…
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There are always times in life when people over commit themselves financially and they find themselves struggling some what with too many debts.
After drawing in their belts for the last few years due to the credit crunch and feeling rather uncertain about their job security, many splashed out on last Christmas more than usual, and their credit cards are at or nearing their credit limit making it become a bit of a debt problem.
A lot of this expenditure on the best of food, the most expensive presents, and even that special trip to Lapland to see Santa with the kids was paid for by credit cards.Your wife certainly appreciated the lovely pearl necklace, but it like all the other expenditure over Xmas has still to be paid for.
Your original credit card had a limit of 2,000, and based on your income that was easily affordable as the payment on 2,000 was 60 per month.
However a major problem with credit cards is that not long after first taken out, the credit…
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For some people having a house means they get to, in time, remortgage or refinance. This is a process to pay off one mortgage with another. By using the same property as security, you are able to get another mortgage. Some people do this for extra money, to get a better interest rate, or to get a different lender.
There are a lot of people that think this process means moving or taking out a second loan. In fact this is other than true. Basically it means you are going to pay off one loan with one lender and getting another loan with a different lender. This is a great way to ensure that you are getting the best rate possible.
There are other reasons to get a second loan. Some use the money to do additions to the home, consolidate their bills and even pay college or school tuition. Many times though, the most useful advantage is the lower monthly payments. Homeowners sometimes use their home for the reason of getting…
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