Posted by admin on April 30th, 2012
Both the government and consumer action groups are asking for tighter regulation and greater transparency for the pay day loans industry. They argue that the ‘abuse’ of consumers who are already in debt, vulnerable and desperate for help is causing some to loose their homes or suffer many years of deep financial turmoil.
In their defence, pay day loans providers claim their industry is already highly regulated, and the high interest rates they charge on these high risk loans is comparable to bank charges on unauthorised overdrafts. The Consumer Finance Authority (CFA) which is representing short term loan providers also states that they are not ‘preying’ on the vulnerable, as 50% of those taking out pay day loans earn more than £19,500 per annum, and 75% earn more than £15,000 per annum.
However it’s the remaining 25% of borrowers which the Government and consumer action groups are most concerned about, as many of them survive solely on benefits. The lenders of pay day loans often market their services as ‘debt management’ or ‘debt consolidation’; phrases which are aimed at those already in high debt. Because these loans are a ‘distress purchase’, consumers do not fully consider or understand the risks should their repayment plan go wrong.
In recent years the number of companies providing pay day loads has increased exponentially and their marketing methods are even more direct. In 2006 the pay day loans market catered for around 300,000 customers, in 2010 the figure had risen to almost two million. This could reflect the popularity of pay day loans or the unscrupulous marketing methods employed by loan providers. Either way, if you need a pay day loan and can afford to repay it within 30 days, visit www.fastloansquickcash.co.uk.
By Carl Liver
Posted by admin on February 17th, 2012
An equity release is similar to the principles in a reverse mortgage. In essence an individual is allowed to obtain money based on the equity balance in their homes. It is a way for senior citizens to be able to tap into the value of their home to live comfortably in retirement. An online equity release calculator is available on many websites that deal with these sorts of financial arrangements. These calculators can be helpful for individuals so they can decide whether or not this is an appropriate option for them.
There are a number of these calculators available online. Simply by Googling the term equity release calculator one can find listings of the websites that offer these calculators. One who is contemplating this sort of option may want to compare options to find the release loans that are available to them, and to see whether these options are ones that they want to take advantage of. There may be cases where individuals are offered options from many different banks or lenders.
There are many financial institutions in the UK that will offer these types of loans to seniors so that they can find the sort of loan they are looking for. It is a way to take advantage of the equity that is in your home so that a comfortable retirement is obtainable.
The only downside with an equity release plan is that the money has to be paid back at some point. There are different types of equity releases and equity scheme that are available. One type of and probably most common arrangement is a lifetime mortgage. This is something that is available to an individual who wishes to have a lump sum payment available until their death. This is one of the advantages of this type of arrangement.
There are some disadvantages to this type of loan however. Some of the disadvantages of these types of loans are that they will most likely limit the amount you can give to your heirs upon your death. It may also limit the amount that you can give to charity. It is important to figure out how much money you will have available in your home for this type of loan. An equity release calculator can help individuals to figure out if this is a proper option for them, or if they want to investigate other options.
Carl Liver
If your wanting to find out more information of equity release or how a equity release calculator can benefit you, then make sure to visit us.
By Carl Liver & Barry Summers