Tag: loans

The True Cost of Payday Loans

Posted by admin – January 9, 2012


It’s often asked why payday loans are so expensive; with huge annual interest rates sometimes quoted, implying that rich companies are profiting at their customers’ expense.

When investigating why short term loans cost what they do, it’s worth pointing out that it’s very misleading to talk of APR in relation to these kind of loans, as the loans are made over a much shorter period of time.The annualised interest rate is easily in the triple-digit range, but these astronomical figures really bear little relation to the actual cost of the loan products.

Using the same reasoning, you could quote the price of a taxi at £15,000 per 1,000 miles, or £50,000 for a ton of oysters,…

Ways to build up a good credit rating

Posted by admin – September 15, 2011


Your credit rating determines your ability to secure a mortgage, credit cards and many loans. Your credit worthiness with a particular company is formulated using many factors, which include any past dealings you may have had with the company in question, information you have supplied on the application form, and official credit files from the three major credit agencies.

It’s important to do all in your power to improve your personal credit rating. A little while ago we looked at five ideas to improve a bad credit history. In this post we’ll look at other steps you can take to build a good credit rating, whether you have a bad credit history, or you’re attempting to build…

Crisis Loans with New Regulations from April, 2011

Posted by admin – March 31, 2011


Crisis loans are one of the most popular interest free loans offered by the government, colloquially known as “friend-in-need” loans. While the government’s crisis loans have been helping millions of Brits for many years till date, regulatory procedures are about to change, as the government is currently facing budget deficits.
The Department for Work and Pensions has informed us of new regulations for Crisis loans which will come into effect from the month of April, 2011.

Crisis loans are meant to aid those of low income who need emergency cash to meet essentials in their day-to-day life. Though crisis loans have been helpful to many in getting their emergency needs fulfilled, ranging from buying cookers to bedding, some of these benefits will no longer be available in the future.

The…

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Anna’s plan to get an Interest free Loan

Posted by admin – March 24, 2011


Anna, my 44 year old friend works as a teacher in a private nursery school. When I met her at the laundrette last evening, she seemed very excited about her daughter Carol’s wedding which is coming up next month.

Though Anna is happy about spending her savings on her daughter’s wedding, she is a little worried about her home improvement plans for which she needs extra funds. Especially given that Joe, her husband, has been on income support for a while with Anna having to pay most of the bills. Though they face tough times financially, what I really like about the couple is the fact that they always come up with a solution together.

Though Joe does not have enough funds to contribute, Anna is confident to get help. She is…

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Payday loan? Is it worth the pain?

Posted by admin – October 11, 2010


What do credit cards and payday loans have in common? High interest rates!? Yes, for one thing, sure. But why would more than three fourth of the population in almost all developed countries have credit card crunch as part of their life’s misery? Don’t they know the interest rates are high and they might end up paying more than they imagined paying? But the situation always turns out mumbo jumbo where the bills play different tunes in the end of the month. Often melancholy.

True to every word above, credit cards turn out monstrous than payday loans, as they tend to flex their muscles horizontally and vertically almost every month while polishing their ribbon wrapped hidden charges. Payday loans turn out to be saviors in this case, as they only charge the initial APR which is…

Bankruptcy is a matter of choice!

Posted by admin – September 7, 2009


In this consumer-centric era, there is something for everybody. A trip down memory lane reveals otherwise. With regard to loans, you could either be a good prospect or a bad one. There was nothing in between. If you had a speckled history, no lender would ever oblige your loan request. One county court judgment, one freak instance of loan default, or simply the lack of a sound profile (employment or income) would mean you could only beg and not borrow. Attribute it to market changes or the generous dose of competitiveness infused by forward-thinking economists, the relaxation in eligibility criteria has made a significant difference in the lives of many.

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