The structure of personal loans and business loans has not changed in recent years. However, the flexible car loan schemes have led to intense increase in consumer borrowing. The Bank of England reveals that lenders have loosened the borrowing policies, which is why, the borrowers find it east to borrow unsecured loans, despite their low credit scores. Among all types of loans, the car sales have won over consumer confidence by hitting record high since financial depression.
Don’t be surprised to see the roadblocks, as around 2.63 million new cars have hit the road in 2015. Previously, the highest number of car sales had been recorded in 2003, which was 2.58 million.
Is It Debt-Fueled Recovery?
A popular belief is that the private sector, which faced a debt downfall of 130% of GDP in 2008, is fueling the debt to recover it. It is not a debt-fueled recovery by the private sector but it is because of the low interest rates that the banks are offering. And about that, the banks are offering low interest rates, yet generating good profits.
A few benefits that are fueling up the consumer borrowing include these.
A majority of the consumers take out loans from the banks. The benefits of borrowing from the banks rather than the private lenders are countless. The bank will sign a contract with you and open a loan account for you. The borrower can easily access the loan account and deposit money directly into their account.
Taking out car loans had never been this easier. Many banks offer low interest car loans to people with bad credits also. Unlike home loan or business loan, you do not need high credit score or extraordinary billing history to take out a car loan. Above all, it is a direct dealing process i.e. the borrower deals with the service provider in person to finalize the deal in the best interest of both parties.
Practically, you purchase what you can afford. However, when you take out a car loan, you may consider purchasing a luxury sedan instead of a simple vehicle. Flexible car loans with lower interest rates have increased the borrower’s scale of affordability.
In most of the personal loans like home loans, the Annual Percentage Rate increases or decreases, according to the interest scale provided by the government. This interest rate is updated at the beginning of every fiscal year. However, it is different with car loans. Most often, when you take out a car loan, you get fixed APR, which means that you will pay fixed amount of interest even if you take out loan for 30 years. It helps the borrowers calculate their total investment in a car, which is why, they may consider spending a few extra Pounds to get a luxury sedan, which they may not afford otherwise.
If Brexit dismantles UK’s economy, the government may consider increasing the interest rates on all loans increasing the car loans.…
Two people meet, fall in love, get married, have kids, and boom! They become one of the many couples who have to worry about the financial management of the family. The trusty financial book may be a good way to keep records and to plan for the future, but it is not all. There is still a long way to go, and with the increasing demands of today’s lifestyle, you may find that you have bitten off more than you can chew. Let us help you with that. Here are some of the best tried and tested ways to manage the financials of your family in a hassle free way.
1. Don’t Chase the Financial Fads
There are a lot of investment ideas that revolve around, and you may be tempted to jump on the bandwagon with the people who have described to you such great promise of the new so-and-so investment. However, it is not a good idea to invest on a referral without first assessing the actual needs of a family. Every family works in its own way, and what may have worked for a-friend-of-your-brother-in-law or a company colleague, chances are that it may not work for you. Evaluate what you would actually need in 10, 20 years from now and invest carefully in a program that will be most beneficial to your family.
2. Team Up with Your Partner for Money Managing
A one-for-all approach does not work.
There, we said it.
You need to decide the roles and rules that will be right for your family. Don’t look at other families and decide that that’s what you are going to get. Whether you decide to have separate or shared accounts, sit and decide with your partner, so that you are on the same page. As for the kids, they will adapt to the changes as long as their parents are clear about what needs to be done.
3. Be Open about Financials with your Spouse
Once you have financial plan, don’t ruin it up by going behind your partner’s back and spending on that thing you wanted for a long time, and keeping your partner in the dark. A study by Relationships Australia concluded that 30% of men and 37% of the women pointed to financial stress as the reason for their marital misery. Being open to your partner about your spending can result in a better management, as then the money that has been spent can be saved up from other sources and the financial plan that you have decided on does not get affected.
4. Save on!
Create an atmosphere in the family where saving is encouraged. It is especially important for kids, since the new generation has tough goals to achieve ahead, and they need to be taught how to save and manage money from a young age, so that when they reach the age where they have to make tough financial decisions on their own, it won’t be something alien to them.
5. Preserve Retirement Funds
Always try to preserve what you have set aside for retirement. There may be times of emergency where you need money and the retirement funds are the only savings available, and you can withdraw from them. But try not to make it a habit. For IRA and other plans, you are allowed to make withdrawals from retirement funds at any age before 60, but if they are made frequently, you may have to face penalties and pay hefty taxes. Therefore, it is a good practice to not consider the retirement funds as a backup option.…
Having a few red spots on your credit report can be worrisome when you apply for loan. Lenders are not really willing to offer anyone financial aid who doesn’t have a proper credit history or has a negative credit file. And while it becomes difficult to manage big purchases — such as investing in a property or buying a car —with your current earnings, borrowing cash could become even more challenging.
Guarantor loans can rescue you in such situations. The guarantor voluntarily becomes the security against the money you pay and act as a backup. He or she takes full responsibility of repaying the loan amount in case the borrower cannot. Since the security is in the form of guarantor, lenders feel less risk-averse in approving the application.
A number of companies throughout the UK offer guarantor loans. Some of the best and most reliable ones are listed below:
The company offers fast online approval and loan service and therefore is one of the most popular lenders in the UK. They do not charge any upfront fees and do not consider borrower’s credit history for loan approval. The guarantor loan amount fall between £1,000 and £10,000 with representative APR set to 37.9%. This is a fixed amount that is charged over the loan term, which can be up to 5 years.
Another reliable name in the industry, Amigo Loans offer one of the fastest service, which allows you to borrow between £500 and £7500 in less than 24 hours. There are no hidden or upfront fees associated with the loan.
Amigo Loans is proud to be associated with more than 190,000 customers already approved. They even claim to help one customer with guarantor loan every 10 minutes. Another reason people opt for Amigo Loans in the UK is because they accept both tenants and homeowners as guarantors.
The representative APR is 49.9% variable with loan term up to 5 years.
Quick and easy cash in hand, Guarantor My Loan is an online lender extremely popular and reliable for its customers. With Guarantor My Loan, you can borrow up to £5000 for up to 5 years term. They take the responsibility of helping you with your poor credit report as well. However, in order to acquire a loan, the guarantor must be a homeowner and over 21 years.
There are no hidden feesapplicable on the loan. The representative APR is 48.9%. Since the lenders offer only fixed rates, the payments will not change over the term. However, you can pay back in a weekly form or fortnightly – as you are comfortable.
Applying for this loan is easy. All you need to do is fill up an online form with your details and personal details of the guarantor. This is a great way to receive immediate cash without trouble.
You may find many online lenders offering guarantor loan but at the end some of them may turn out to be just brokers. This could elongate the cycle and make it more frustrating. To avoid this, make sure you are dealing with real lenders only. Investigate and do your homework before proceeding.…