Experts Predict Finances Won’t Improve Until 2020

A new report has shown that low to middle income earners won’t see any proper improvements to their finances until 2020 at the least.

This report refers to the households that bring in around £20,000 a year take home (around 5.8 million households). According to the research, the incomes for this group of households will gradually decline then start to level around 2016/2017. Then hopefully, the growth that is expected will come along and then in 2020, these households will go back to the same disposable income they had before the recession came along. However, if this predicted growth doesn’t happen, then incomes could be 8% lower than 2007, which isn’t good news.

finance improvements

Whatever the outcome, it’s still likely that the gap between the lower incomes and the higher incomes will get bigger.

Also, with regards to property, this group of people took around four years to save for a home deposit in 1992 and eight years in 2001. In comparison, these same households will now have to wait around 22 years to be able to get their own home. It also showed that those who are over 35 may never be able to stop renting. The reasons that researchers gave for the increase was that wages aren’t increasing at the same rate as house prices.

Although many people across the UK are looking for some positive news regarding the state of their finances, unfortunately the immediate future isn’t looking too bright. Hopefully we will get some good news about the economy soon.

What are 5 common types of loans?

A loan is a sum of money that is expected to be paid back over a period of time with interest or a monetary value on top of the initial price borrowed. Below are 5 common examples of loans available to consumers.

Secured Loan

Secured loans are a form of lending that an asset is used as collateral should any default be made on the payments. Traditionally secured loans are lower than the unsecured loan alternative. In most cases, the asset in question must be pre-approved to proceed with the personal loan application. Examples of assets can range from a car, to appliances within the home or even in extreme circumstances property.

Unsecured Loan

This form of lending doesn’t have a pre-determined asset for collateral. In most cases these types of personal loans are quite popular amongst regular consumers, which does come with some strings attached. Applicants are assessed solely on their credit history and income to qualify for the loan. If in any chance you do default on the loan, lenders are able to use debt collectors and lawsuits to recall the loan.

Open Ended Loan

This is a form of lending that can be regenerated at any given time without having to submit an application form. A typical example of an open ended loan is a credit card. But be aware this isn’t an open ended bottom less pit of money, you have a set limit of which you can spend which is called a Credit Limit

Car Loan

There are many forms of car loans. There are loans where you apply to purchase a car which in this case is your security. The other is a logbook loan where you are borrowing a pre-agreed amount for something else and your car will be the asset seized should you not make repayments.

PayDay Loan

Since the Global Financial Crisis, this form of lending has been seen as quite popular to those really desperate within society. In other words people who have repeatedly been refused lending from other financial means. PayDay Loans are in some cases the last resort for lending. More often than not PayDay lenders will charge a significant interest rate well exceeding the amount initially borrowed.

With any form of lending do make sure that you can afford to pay back anything lent on time!

Becoming a Confident Borrower

Trying to become a confident borrower is very hard. Most people were not raised up on solid personal finance techniques and information, which means that they were indirectly taught to fear credit. We get almost more nervous over seeing the mortgage broker than the person who our children see every day in class. Since when do brokers merit more of their distress than what type of teacher our children have? Yet for many, the fear of debt is harder to overcome than virtually anything else. People are terrified to death of public speaking will often take tat over going with a broker of any kind.

You have to make sure that you’re committed. Credit is a serious thing, and it’s important to maintain your confidence. You’ll be a lot more confident if you have a system that you can rely on. Knowing that you have to pay your bills on time in order to build and maintain your credit is very important. There’s no sense in going through all of the trouble to get your credit back in order if you’re just going to mess it up again.

Being confident as a borrower mean knowing that those bills are going to be paid. Yes, there are things that come up in life, but you’re still going to have to maintain your responsibilities. Your family is going to be counting on you to do the right thing.

The truth about confidence is that it gets better over time. As long as you are paying your loan on time, you’ll find that you feel better. You can’t expect everything to be perfect overnight. If you already have debt, then you’re probably going to have to deal with those debts for a little while longer. On the other hand, you need to make sure that you are going to definitely handling your debts. Just ignoring the problem will not make debt go away. If anything, debt is fed by you skipping over the problem like it doesn’t exist. This takes away from your overall confidence.

In order to grow as a borrower, you’re going to eventually learn to not concern yourself with what your friends or other family members think about what you’re doing. Credit is your tool, not theirs. You may even have family that are just envious because you can get approved for credit and they can’t due to whatever factors are already in play. You might as well learn to get over what they say and do. They might try to tell you to use that money for something else. After all, it’s just a credit card or a loan, right?

Wrong — it’s actually your future that you’re playing with. Every time that you do the right thing when it comes to your credit, it’s good information that’s listed in your credit reference file. The more positive information, the more likely that you are to be seen as a good credit risk. You have to make sure that you know what you’re doing at all times. Just giving up isn’t the answer — you have to make sure that you get as proactive as possible about your credit.

Using credit wisely is all that we’re trying to teach here. If you are using your credit wisely, then you’re going to feel confident. Don’t be tempted to follow the crowd. If you honestly don’t have the money for it, don’t charge it. Sure, you might be waiting on an awesome promotion and a raise, but everybody loves a raise. You aren’t going to be the only person jockeying for a raise at your organization. So beware of putting all of your hopes and dreams on something that hasn’t quite come true yet. Trust in the company, but wait until you’re actually funded before you let your dreams truly run wild everywhere you look. These are the real keys to success, so don’t skip over them. Good luck!

Finding the Best Source for Car Loans

The Internet is a great source for a cheap car loan for many reasons. In the past, getting a great deal on a car often meant having to either wait to see the right person at a bank, or having to go directly out onto a car lot and hope the dealer had your best interests at heart. Both scenarios offered very little control in terms of the customer, but the good news is that there are so many options now to get a great rate on an auto loan.

New cars are often one of the biggest targets for car loans online, as there is no greater feeling than getting something completely new. There are plenty of options for new car loans, with the main difference being the length of the car loan itself. Great rates exist for all customers, even customers that may have a few credit challenges. So if you’re looking for a brand new car, there are definitely car finance options for you!

Used cars may not be as new, but they are still reliable cars and perfect for young drivers and budget conscious adults alike. A good used car that is well maintained and cautiously driven can actually last for a very long time. Many people believe that used car loans are hard to get, but the truth is they are not as difficult to acquire as it may appear at first glance. Lenders understand that customers today are looking for affordable values in the cars they want to own, and a used car can provide an equivalent amount of value to a new car.

To get started, you want to shop around for the car you really want. Whether it’s new or used, the right car for you will depend on a variety of different factors that will naturally vary between each person. For example, if you need a large vehicle in order to transport your family, then you will want a much larger car than a newlywed couple without children. Spending time to find the right vehicle will make all the difference when it’s time to find a car loan to finance it, since you will have a better idea of what will be the best choice for your situation.

Overall, the best source for car loans is definitely going online. It has never been this easy to get a great car loan at a great rate. Now you can stay in the comfort of your own home and still have a variety of options literally only a click away!

How to find information on past student loans

While you were in college getting your education, you took out a bunch of loans to help you finance it. Now that you have graduated it is time to start paying them off. A lot of people do not know what happened to their loans once they graduate and end up defaulting. If you don’t know when or where to send payments, it is very important that you find out before you end up defaulting on your student loans. You should first check with the loan servicer. The servicer should provide you with contact information of the lender.

If you cannot get in contact with the loan servicer, or if the servicer is unable to provide you with the information requested, there are a few other places where you can look for help. Check with your school financial aid office for your lenders contact information. If you took out a Federal Perkins loan, the financial aid office should have all of the payment information that you need.

You can also try searching for your student loan information in the National Student Loan Data System. The National Student Loan Data System contains information on Pell Grants and federal student loans. In order to fully utilize the National Student Loan Data System, you will need to provide it with certain personal information. You will need to provide your social security number, date of birth, and your Federal PIN number. Your federal PIN number is the same number used in FAFSA application.

The last resources for finding information pertaining to your student loan is the National Student Loan Clearinghouse, Elmnet, and credit bureaus. The NSLC provides a free loan locator for Federal Family Education Loan program participants. Elmnet provides information for FFELP participants. Last but not least, you may contact your credit bureaus for a credit report that will give you information on your open student loans.


A loan refers to a debt that is given to a borrower by the lender. There is always a cost of borrowing involved when taking up a loan. This cost is called the loan rate or the interest rate. Loans usually have loan rates based on various factors such as the credit history of the borrower and the amount being lent etc. Loan interest is usually a percentage of the amount being lent to the borrower by the lender.

Debt Loans

Debt loans are not typically secured by a lien or by collateral. A typical debt loan is credit card loan. These loans are like a promise or a contract between the lender and the borrower governed by certain loan covenants. The cost in this case is the interest that is charged on the money being borrowed and no other security is held. Banks and other financial institutions make use of debt loans to speed up the circulation of money and they assess a person’s credibility by looking at his previous credit history and other such factors. Corporate bonds are also a form of a debt loan. Loan interest maybe higher than other secure loans as no property is being held as a security that the loan will be paid back.

Equity Loans

Equity loans are issued on real estate. For Example, a person can put a lien on his property such as land or a house and take a percentage of the total value of the house as loan. The property of house that has been kept as lien will be a security or a guarantee to the lender that the money will be paid back and if the borrower fails to pay back the borrowed amount the house can be sold off to recover the money. As the lender has a security of the entire amount that he is lending the interest rate charged on the loan is lower than the interest charged to un-secured loans like credit card. At times the borrower may take up a loan to buy a house or a car from a financial institution and in this case the house that is being bought or the car that is being purchased is the security of is kept as a lien against the loan being given.

Consolidation Loans

Consolidations loans refer to loans that avoid monthly loan payments and instead of making several debt payments you make just one. Loans can be converted into a consolidation loan by combining several loan payments into a single payment.

Debt consolidation loan can enable a person to repair his credit rating. By making your loan payment promptly and in one go you give the impression that you are financially stable and committed to paying back the loan you take up and are not a defaulter. Also, you can avoid defaulting on payments through debt consolidation loan if you are unable to keep track of all your payment periods.

For people who have different interest rates applying to different loans that they have taken up and each loan has a different payment date then consolidation of all these loans into one loan can facilitate you by applying one interest rate to all the loans and making the payment on one day. If you do not want to spoil your credit rating even by chance if you miss a payment debt consolidation is the solution for you.

A debt consolidation loan can be secured or unsecured. Most secured loans are secured by the borrower’s house. It does not have to be a house necessarily any item of significant value can be used as security for secured loans. The item that you will provide as a security to your lender will give them confidence that you will pay back the amount being loaned to you and in case you fail to do that they can always sell off the item to recover their money. Secured consolidation loans offer higher amounts to be borrowed and lower interest rates along with flexible spending options.

Unsecured consolidation loans are very risky for the lender and that is why they secure their lent money by higher interest rates and restrictions on how the money can be used.

People with bad credit rating can also get both type of consolidation loans and can repair their credit rating through making regular and prompt payments on the consolidated loan. Carefully negotiate the terms and conditions of your loan with the loan officers to avoid any hasty decisions that may result in a loss to you. It is always better to research and check the market for various offers and then go with the best option that suits your needs. Many loan officers have become incredibly flexible and accommodating towards people with bad credit rating.

Small loan

A small loan is also known as a fast loan and it comes in handy at the time of emergencies. The paper work and formalities of a small loan are minimized to facilitate the borrower and speed up the process. Some companies offering fast loan or small loan ask the borrower to fax some important documents however; others even exempt them from these steps.

Small loans are of small amounts as suggested by the name and a person can apply for them in case someone in the family falls sick and they are still waiting for their pay which is due in a week or two. Other similar emergencies can also be handled by the virtue of a small loan.

Online Loan

Several loan companies and banks have started offering online loans. This has further facilitated the borrowers and instead of going from loan officer to loan officer they can surf for the appropriate offer on the web and get the best offer of loan rates with the conditions that suit them best. There are several companies that offer loans but have no physical presence and only exist on the web and offer online loans for borrowers. The payback periods and amortization etc of a loan can be calculated on the particular website by using a loan calculator that asks for simple details and you get to see the entire details of the loan you are assessing.

Resources for our non English readers:

Swedish readers can check out all options when they want to “låna pengar” (borrow money).

Which are the Best Loans to take out?

There are so many different types of loans available these days, that it can be difficult to know which one might be the best for you. This can depend on a number of factors and so it is wise to learn a bit more about different ways of borrowing money.

Some types of loan are more expensive than others and so it can be worth looking for the cheapest. This may not be as simple as it sounds though because you have to take in to account the amount you borrow, the interest rate and how long you borrow it for as well as any charges. This can take quite a bit of working out.

You should start by considering how much money you want to borrow. You should have this figure in mind anyway as you would not be looking for a loan. Then calculate how much you can afford to pay back each month. This will determine how long you will need to pay it back, which will help you find the right loan. If you want a small amount of money and can pay it back in a few weeks then a credit card, store card, overdraft or payday loan could be the answer. If you want to buy a house, then you will need a mortgage. If you are buying a vehicle or doing extensive renovations on the house then a normal loan could be the answer.

If you do not know much about loans, then it could be a good idea to learn more before taking one out. You could talk to your bank or find out information online. Everyone will tell you that their loan is the best so be careful not to be led in to buying something unsuitable for your needs. By having some knowledge you will be in a better position to know what is the best thing for you to do.

A financial advisor may be able to help you. They have knowledge of loans, but they will try to persuade you to get the one that earns them the most commission.

Remember that you can chat to them and learn about loans without having to take the one out that they recommend. You can go away and think things through first. It is always good to take some time before signing up to a big commitment like a loan. It will cost you a lot of money and it will be an effort to pay it back and it could be a long time before it gets paid off. So do not rush in to anything.

Low Interest Credit Cards Light up the Holiday Season Quite Nicely – Check It Out Today

Are you looking at trying to get a good credit card in time for the holidays? Chances are good that you could use a little help this holiday season to make absolutely sure that you have everyone’s gift taken care of. Instead of worrying about what to buy during the holidays, you can just put it all on your credit card.

The credit card that you choose will have a direct impact on how you handle your holiday shopping. If you really want to make everyone’s Christmas a little more special, you gotta get low interest credit cards on your side. It’s not like you really have to stress and strain over them either. With a little help, you can get exactly what you need to do done without any stress at all. It’s just a matter of thinking about your options.

If you want to get started before all of the good deals fly off the shelves, then it’s time to apply for credit cards as soon as you can. The worst thing that you can do is delay when there are so many good deals to be had. If you have decent credit, it’s highly likely that you can get a low interest credit card to get you through the holiday season.

If you’ve worked so hard all year long to be good with your money, then you really don’t want to find that you can’t get things taken care of, right? Right. The bottom line is that it’s your money, so why shouldn’t you get to have a little fun once in a while? Why shouldn’t you get to enjoy yourself? It’s not like you always get to just step back and spoil the people that matter most to you in life.

If you work hard and keep your options open, you’ll find that low interest credit cards really do light up the holiday season quite nicely. As a word of warning, though, you want to make sure that you’re remaining absolutely honest with yourself. Don’t think that these credit cards are just going to fall into your lap. Sometimes in life you have to swim out to your ship instead of waiting for the proverbial ship to come to you. The best bit of advice that we can give is that you always need to keep your wits around you. Just because you don’t get one credit card doesn’t mean that you can’t entertain other offers. Check it out today for yourself!

Get Loan Quotes Without Applying

If you have applied for credit before, you may have noticed that the interest rate you are offered does not always match the advertised rate. While the financial watchdogs have now warned lenders that they need to advertise their typical APR instead of their best rate, you may still find that you get offered a different interest rate to the one you expected.

The reason that rates may vary from what you see advertised to what you are offered is due the creditors’ lending criteria. Once they have looked at your credit file and therefore your personal financial circumstances, they will offer you a rate they think is suitable based on your financial history. They do sometimes also charge a higher interest rate if you are borrowing a smaller amount of money.

You certainly do not want to have lots of activity on your credit file because you have contacted many different lenders to find out what you will be charged, so how do you get loan quotes without applying?

First of all, once you have shopped around for the best three or four deals, then contact the lenders and ask for a ‘quote’ also asking what type of checks they will make.

There are two types of check – one which shows on your credit file, one which doesn’t. The former is called a ‘credit enquiry’.

If you are purely asking for a quote, then your credit file should show the term ‘credit enquiry’. This is visible only to you on the file and not to any potential lenders in the future.

When an application is made for credit, there will be the term ‘full credit check’. This will show on your account and be visible to any future lenders.

Anyone can apply for a bad credit loan

It’s difficult for some people to think about applying for a bad credit loans because they feel they are a disgrace financially. Before these people can attempt to repair their credit they must take some time and understand their situation and why they had trouble handling their finances and if the same problems are still existing.

Reasons Behind Your Financial Incompetencies

Before you can overcome your financial problems and think of rebuilding your credit using bad credit loans, you have to understand the reasons you suffered a financial downfall first. If it was because of a job loss or other decrease in income, overcoming the problem will be easier provided you don’t suffer a repeat of that earlier situation.

On the other hand, if you lost your good credit standing because of an inability or unwillingness to put priorities in order, you will have a much more difficult time overcoming that obstacle, especially if it is because of gambling or substance abuse.

Correct any Obstacles

Before you begin applying for any bad credit loans, make sure you evaluate and correct any obstacles that may be in the way of making your payments on time. There are definite reasons you had financial issues that caused your credit to deteriorate, so you must deal with those first.

On the other hand, if you are simply the kind of person who feels bills are second to other things you might want to do, you are not ready to go forward and make a new start with any of the lenders of bad credit loans. It is essential for you to first come to grips with your inability to recognize the importance of prioritizing your finances and then think about rebuilding your credit.

Set Some Financial Goals

After you have evaluated your past behaviour and are on the way toward rebuilding your credit with a lender of bad credit loans, sit down and set some financial goals. It may mean setting up a plan with your bank to have the loan payments automatically deducted from your checking account or having a close friend or relative who is financially responsible help you make a budget and see that you stick to it. There are many different ways to help you get back on the right track so that you can rebuild your credit and have the means to buy the things you want and need in the future.

You don’t always want to rely on loans that are designed only for those with bad credit, and you can work toward that goal if you put your mind to it. Goal setting is a very important part of achieving financial stability, especially for those who have had problems with credit and developing a good financial base. You want to start with small goals such as simply making the payments on time and then maybe progress to paying a little extra on the loan to pay it off early. Once you get into the habit of handling your finances in a responsible way, it will become second nature to you.

Homeowner Loans

A homeowner loan can also be know as a home equity loan or also perhaps as a mortgage.

A home equity loan can also be abbreviated to “HEL” and in this particular method of loan, the borrower will use the equity of their home as collateral. For instance, borrowers might look for this type of loan where they are trying to raise funds for requirements such as home repairs, or also perhaps for situations such as medical expenses or education etc..

As a consequence of taking out equity of their house, of course the total amount of equity thereafter available will be subsequently reduced in its capacity. A mortgage loan can be classified as a loan that is secured against actual property by means of a ‘mortgage note’ that declares the existence of the loan. These loans can be undertaken from financial organisations such as banks or additionally through intermediaries. Aspects to consider would be the size of the loan to be taken, the interest rate and method of payment etc..

In order to facilitate a homeowner loan, they will probably be required to have reasonably high level credit ratings – this is a series of calculations that are undertaken to ascertain the practicality of the borrower to be able to repay the debt that they have undertaken. There may be two types of home equity loans, which can be known as first of all ‘closed end’ loans and second of all ‘open end’ loans. Both of these types of loans may be known as ‘second mortgages’. This is because they are secured against the equity of the house’s value in the same sense that a traditional mortgage may be undertaken. Moreover, these types of loans may be for a shorter time than the more traditional type of regular mortgage.

There is a noticeable difference between the concepts of a ‘home equity loan’ and also a ‘home equity line of credit’. The HELOC is a type of ‘revolving credit’ which has an adjustable interest rate. On the other hand, a ‘home equity loan’ may be a ‘lump-sum’ type of loan which then of course could have a fixed rate of interest. It might be possible to borrow up to a total amount that is 100% of the value of the property’s equity. They may be available for up to 30 years. Furthermore, it might be possible to only be paying interest rather than any actual repayment.

There may be several fees that can be relevant in the issue of ‘home equity loans’ – these are namely: ‘appraisal fees’, ‘origination fees’, ‘title fees’, ‘stamp duties’, ‘arrangement fees’, ‘closing fees’ and ‘early pay-off fees’. Additionally, there may also be surveyor and conveyor or other valuation fees – however some of these may not always apply. Most loans that could be taken might have some sort of fee structure – so that would be important information to be aware of when signing up for any potential contract that might be undertaken in this regard.

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