19/10/2007 by Dave.

Those considering a debt consolidation strategy may be interested to hear that more than three-quarters of credit cards on the market leave borrowers with the most expensive debts left on their bill the longest, it has been claimed.

According to a survey by MoneyExpert.com, 76 per cent of credit cards clear cash withdrawals last, which may mean that and increased amount of consumer debt accrues interest for longer.

In addition eight in ten cards clear cash withdrawals and purchases last, which are claimed to be the most expensive methods of borrowing.

“Your purchase could sit on your account for over a year while you pay off your balance transfer, incurring interest of at least 20 per cent,” said Sean Gardener, chief executive of MoneyExpert.com.

Credit card holders may find a number of products within the UK loans market which could be an ideal solution to minimise interest payments and consolidate borrowing

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11/10/2007 by Dave.

It is becoming increasingly important for consumers to take control of their debt, according to one expert.

James Ketchell, a spokesperson from charity the Consumer Credit Counselling Service (CCCS), said this week that with debt becoming “more acceptable” many people are not taking into account what they can and cannot afford to repay.

For many consumers a debt consolidation or secured loan could be the right option. However, Mr Ketchell states many people are getting themselves into debt while they are still in higher education.

“Once people are used to the idea of debt then its easier for them in the future, to take up credit cards and personal loans, because the stigma has already been removed by taking out student loans during university.”

He also advised that people should keep a “tight reign” on their budget, which debt consolidation can often help with.

A recent survey from Barclay’s bank found that last year students in the UK were leaving higher education with an average debt of £13,501, up from £12,069 in 2003.

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04/10/2007 by Dave.

More people are getting further into debt each year by running up their credit card bills, according to a new survey.

The study, put together by price comparison website moneysupermarket.com, found that credit card cash withdrawals have now reached £8.3 billion per year, which could prompt many people to consider a debt consolidation loan.

It was also revealed that a single £20 cash withdrawal using a credit card can result in up to £65 in interest and charges in one year - even if consumers repay their balance at the end of each month.

Rob Kenley, head of credit cards at moneysupermarket.com said that at an average cost of 27 pence for every pound withdrawn means that many could be using credit cards as an “exceptionally expensive way to spend”.

“The real killer is the cash withdrawal fee of between £2.50 and £5 on most cards, other than Egg Money which does not charge any cash withdrawal fees,” he added.

Recent figures from Chiltern Debt Management found that a number of people opting for debt consolidation were repaying an average of around 113 per cent of their salary, making secured loans a good option for some.

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26/09/2007 by Dave.

Debt consolidation and car finance are some of the main reasons that people consider secured loans, according to one expert.Steve Baillie, head of loans at Sainsbury’s Bank said that although many people consider loans for home improvements and financing a vehicle, debt consolidation remained the “number one reason”.

He added that over 40 per cent of people were now opting for loans, such as secured or homeowner loans, for debt consolidation and that people should not be afraid to shop around for the best deals.

He warned however, that although many people would opt for debt consolidation with loans, consumers should look at their long-term finances.

“If you are going down the consolidation route you have to be strict with yourself so that you’re not just deferring the problem for future months and years,” he said

A recent study conducted by Credit Action revealed that the UK average for consumer borrowing through credit cards, motor and retail finance deals, overdrafts and unsecured personal loans per average at the end of July this year had reached £4,515.

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15/09/2007 by Dave.

The process for obtaining loans in the past six months has “tightened a lot” due to bad debt provisions made by high street banks, it has been claimed.

James Ketchell, a spokesperson for the Consumer Credit Counselling Service (CCCS), said that the UK loans market has become stricter with regards to the number of people given credit.

He particularly noted that the credit card industry has tightened up its criteria lately due to bad debt issues, citing one company as an example.

“Barclaycard has a very high rejection rate for any new customers that want to take out a Barclaycard,” Mr Ketchell explained. “Lenders are being a lot more particular in the way that they lend.”

The news may be useful for those considering a debt consolidation loan, which can often be a more effective way of repaying debt than with a credit card.

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05/09/2007 by Dave.

A great way to avoid slipping further down the financial slope is debt consolidation loans, according to one source.

Writing for Articlesbase, Albert Alexander states that the burden of debt is being lifted for many people choosing to merge loans, credit card bills and other debt into one monthly payment.

“Debt consolidation will improve your financial life by decreasing your debts to a single payment, oftentimes as much as 50 per cent less than what you are paying out now,” he writes.

He adds that a secured loan used to consolidate existing debt can be the first step towards regaining control of your finances and living a financially independent life.

“For those who feel like they’ve run out of options, debt consolidation may be the answer.”

Earlier this month a spokesman for Experian said that avoiding borrowing money in the first place can have an adverse affect on credit ratings - as it means that lenders have nothing on which to base a decision.

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27/08/2007 by Dave.

Consumers across the UK could be finding themselves financially free with debt consolidation, according to one expert.

A financial adviser said many people are discovering that debts incurred from secured loans, credit cards and other personal finance can be controlled by debt consolidation, according to ukpersonalloanstore.co.uk.

The site reports that Adrian Kidd of Mint Financial Services claims consumers finding it difficult to cope with high interest debts could also save themselves money by switching to one monthly payment.

He suggests that this can bring easier financial management as well as creating more disposable income.

Earlier this month it was reported by moneynews.co.uk that Mr Kidd had advised customers who had acquired debt consolidation loans to cut up their credit cards.

“I think the biggest concern, or mistake, is that people will tell themselves that they’ll chop their cards up, but in two or three years’ time they could well be in the same scenario,” he said.

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22/08/2007 by Dave.

Shopping around online for personal loans or debt consolidation could be the best way of ensuring you get the best deal, according to one expert.

A spokesman for financial education company Credit Action said there are pros and cons to online banking and that shopping for loans on your own bank’s website can limit your choices.

Deputy director of Credit Action, Chris Tapp, said although online banking gives access to personal finance information quickly and conveniently, customers wanting to take out a loan should look elsewhere.

“If you’re interested in comparing loans … going to your bank’s website isn’t going to give you a good comparison of different loans, it’s just going to give you the loans that your own bank wants to sell you,” he said.

Research by the the British Bankers’ Association this year found that the number of bank customers who had chosen to manage their bank transactions such as direct debits and loan payments using online facilities had grown.

The survey found that customers who had registered to access bank accounts on the internet in the UK had risen from 24,307 in 2005 to 28,177 in 2006.

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20/08/2007 by Dave.

Customers are happier than ever at the advice they are receiving on loans and financial matters, it has emerged.

A survey conducted by independent financial advisor (IFA) locator website unbiased.co.uk found that 86 per cent of people receiving help from IFAs on matters such as secured loans and debt consolidation were satisfied.

The research looked at customers who had used the website to help them locate IFAs to assist with issues such as improving bad credit or home improvement loans.

David Elms, chief executive of unbiased.co.uk, said that the figures displayed record numbers for consumer satisfaction in the independent financial advice market.

“These figures clearly highlight that independent financial advice remains a crucial element in consumers’ financial planning,” he said.

Earlier this month a survey found that there was a north-south split on holiday spending that could be covered with a secured or homeowner loan.

The survey by Marks & Spencer revealed that Scottish travellers were the most extravagant taking an average of £287 in foreign currency on holiday, while Londoners exchanged just £253

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10/08/2007 by Dave.

Consumers have been advised to consolidate their credit card debts into a single loan to avoid never repaying the actual amount borrowed.

Mint Financial Services believes that with a loan borrowers know when their debt will be paid off and avoid the endlessly accruing interest that can cause problems for credit card holders.

Instead of racking up debt across several cards and only being able to pay off the interest each month, taking a secured loan or homeowner for debt consolidation can put you back in control of your finances.

“At least with a loan you are given the time and you know that within five or seven years it will be gone, whereas just paying the interest every month without clearing the balance is a fairly suffocating process,” said Adrian Kidd from Mint Financial Services.

“If you have to change your credit card every year for the zero per cent it can take its toll on your credit score,” he added.

Secured loans can also offer some protection against rising interest rates, as their rates are usually much lower than those on standard credit cards.

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